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.
Within R&D tax credit frameworks, there exist varying degrees of guidance, each with distinct purposes. These are ‘Meaning of Research & Development for Tax Purposes: guidelines’, 'CIRD Manual (Corporate Intangibles Research and Development)' and ‘Guidelines for Compliance’
There were some important announcements made regarding the future of the R&D tax credits schemes both in structure, operation and who can benefit as well as wider investment in R&D in specific sectors.
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