Can the automotive sector claim R&D Tax Credits?
Many automotive companies conduct research and development to develop new and improve existing technology to be used in the production of vehicles. Whether it is to make new materials and parts, improve manufacturing processes – making them automated or reducing wastage/costs – or developing brand new electric vehicle concepts.
In today’s automotive industry, many OEM’s will conduct lots of R&D of their own, but a vast amount will be carried out by their respective supply chains. Companies developing components for the automotive sector are in a prime position to claim R&D Tax Credits for their efforts.
The question that we are always asked is ‘what activities qualify for claiming R&D Tax Credits?’
Here are some examples…
These examples are certainly not an exhaustive list but it demonstrates the broad range of developments that could mean that your company is eligible to claim R&D Tax Credits.
As long as the R&D being done is to overcome a technical or scientific uncertainty, then it could be eligible!
Our Consultants are experts in delving deep into your projects, to identify all of the eligible R&D activities and ensuring your claim is maximised to it’s fullest potential.
In previous years, our clients within the automotive sector have been able to claim back, on average, £37,500 in R&D Tax Relief from HMRC!
Your business could be eligible to claim R&D Tax Credits whether it is an SME or Large Enterprise and a claim can still be made if you are loss-making, if the project did not deliver the desired end-results and if the project was grant funded.
Still not sure?
You can find out more about the 2 R&D Tax Credit schemes by visiting our R&D Tax web-page.
Get in touch and our R&D Tax Credit Consultants can decipher from a FREE quick telephone consultation, whether the activities being undertaken are eligible and let you know exactly which project costs can be claimed back on.
Claiming R&D tax relief is a valuable way to recover costs from innovation projects, but it’s not always straightforward. From misunderstanding HMRC’s definition of R&D to weak record-keeping and inaccurate claims, there are challenges that can turn a straightforward application into a drawn-out enquiry. In this article, we explore the most common risks businesses face when claiming R&D tax and share practical steps to strengthen your claim.
Third-party technology, including software and license fees, is often overlooked when businesses prepare R&D tax relief claims, yet these costs can be eligible if directly linked to innovation activities. This article breaks down how companies can identify and justify these expenses in line with HMRC guidance.
Assists organisations in accessing research and development grant funding across a range of UK and EU schemes and industry sectors.
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