RESEARCH & DEVELOPMENT AUTOMOTIVE

The automotive sector is always innovating be it in new materials, durability and beyond. Don't miss out on claiming R&D relief.

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If your business is in the automotive sector, there’s a strong chance that you could benefit from a Research and Development (R&D) incentives claim.

R&D may sound like complex tax relief, only available for boffins and scientists who are pursuing ground-breaking developments. It’s not. It’s available to so many other businesses.

Put a different way, the automotive sector are always innovating to push the boundaries be it in new materials, durability, lightweighting, electric power trains, space constraints, value engineering, or even the same products but a different manufacturing process. Some new, some existing but looking to improve and progress. All equally qualifying. If that’s you then there’s a good chance you could benefit from making a claim.

Don’t miss out on an opportunity to claim the up to 33.5% cashback which is available on qualifying R&D spend.

WE REALLY GET UNDER THE BONNET OF R&D IN AUTOMOTIVE

In four years, we’ve put more than £61 million back with businesses through making R&D incentives claims. Our experienced and dedicated R&D incentives specialists know what to look for and we know where to find it.

Meet Chris Knott our lead R&D Partner who really gets it when it comes to the opportunities for businesses in the automotive sector. With his combination of over 21 years’ R&D Incentives experience, Chartered Tax Advisor status and mechanical engineering background, Chris has a unique combination of qualifications and experience that has been used to good effect in the automotive sector.

By being able to walk the shop floor and “look under the bonnet”, he has made claims for 5 of the F1 teams, 3 tier 1 car manufacturers (increasing 1 of their claims 4-fold from what had been previously advised!). Additionally, in terms of the multitude of supply chain that sits underneath it all, over the years he has also made claims on everything from brakes and pedals to axles and tyres.

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R&D TAX CREDITS FOR AUTOMOTIVE EXPLAINED

If you can identify your technology or science project undertaken over the last 2 to 3 years, which meet a special definition of R&D then you can potentially make a claim. You don’t need to be setting the world alight, but projects must meet two criteria. 1. Seeking an advance in science or technology, and 2. Whilst resolving scientific or technological uncertainty.

Simply put, “Change” and “Challenge”


Change

Projects that include some element of “change” qualify. We’ve looked to make something different, better in some way (quicker, lighter, stronger, smaller).


Challenge

There wasn’t an obvious or standard solution, so we couldn’t effect the change immediately without some thought, time and testing. Some challenges were faced that lead to the engineers scratching their heads and a few sleepless nights (we love a good old-fashioned engineer’s “tweak”).

The process involves identifying costs you’ve incurred during the R&D projects. You can claim staff costs (directly and indirectly involved), payments to contractors or agencies supplying personnel (potentially, dependent on size of the company), consumables, software licences and utility costs.

WHAT TYPE OF AUTOMOTIVE PROJECTS CAN QUALIFY FOR R&D TAX CREDITS?

A broad range of projects can meet the Government’s R&D definition, for example:

1. Design and development to improve vehicle performance:

  • Aerodynamics
  • New materials
  • Lightweighting
  • Fuel efficiency
  • Battery technology/life
  • Space constraints
  • Improvements in structural performance or crash worthiness

2. Automation of manufacturing processes

3. Value engineering to reduce cost whilst maintaining performance

4. Process development to:

  • Increase reliability
  • Increase efficiencies
  • Reduced wastage
  • Increased throughput

5. Integration of new technologies from another industry

6. Investigative work identifying causes of manufacturing defects

7. Development of manufacturing techniques to construct complex components

8. Feasibility studies of concept vehicles and technologies

9. Manufacturing trials to resolve technical challenges with scaling up new products to full-scale production

10. Trials to improve process efficiencies, throughput or reduce waste/costs

WHY IS RESEARCH & DEVELOPMENT IMPORTANT FOR THE AUTOMOTIVE SECTOR?

We speak to hundreds of businesses that think they don’t qualify for the relief, or potentially even worse know about the scheme but don’t realise the extent to which what they’re doing satisfies the breadth of the definition for tax purposes and hence are leaving valuable cash on the table, which makes the eureka moment sweeter.

If you can answer “yes” to both of the criteria mentioned above (are you changing anything? did you face some challenges in effecting those changes?), it’s time for us to have a chat, because R&D tax incentives are a fantastic way to keep your business and your cash flow on the front foot.

GET IN TOUCH WITH CHRIS KNOTT

Chris Knott
Partner & Head Of CP Innovation

GET IN TOUCH WITH CHRIS KNOTT

AND HERE’S WHAT OUR CLIENTS SAY

“Chris and the team helped us realise what we could do, and we went from there. We got a proper understanding of what we could actually claim for. The claim process was incredibly relevant to us. We’re a very innovative company so we quickly realised it could be very financially rewarding. Chris and the team quickly developed an understanding of what we did. He really understood what our business did and where the potential claim would be. It certainly helped to have someone with that level of knowledge. Knowledge of the process but the technical aspects too”.

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Reviews

CHRIS, JAN 21

Great service on audit, responsive and professional. 5 star. Non audit service pricing though is not in line with audit pricing; service great but pricing high; therefore 4 star overall. I guess comparative pricing reflects the nature of the CP partnership structure; how you structure is up to you of course but when it impacts customer experience then it probably needs a look at. Thanks again for great service overall.

CATH, JAN 21

Good relationships, positive feedback and being understanding of impact of other work etc. Although this had to be done remotely, the process would benefit from face to face and discussions to explain the unique context of our organisation and funding streams.

PAUL, JAN 24

“Great service and always timely communication. I feel we have a partner supplier rather than just an auditor”

MEGAN, FEB 24

“We always get a quick reply whenever we have an issue or a query. It was a very good team of auditors that undertook our audit once again – a mixture of continuity and some new faces – and accommodating our tight reporting deadline was much appreciated”

MATT, FEB 24

“My first encounter with the CP audit team and I was impressed. Calm, reliable, organised and ultimately professional. Understanding and sympathetic to our circumstances and keen to work with us to achieve an outcome”

JAMES, FEB 24

“Smooth audit with knowledgeable and friendly staff. I have received great input from both audit partner and manager in my first year as CFO. I have appreciated the pragmatic and flexible approach”

PAMELA, JAN 24

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MICK, JAN 24

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MARION, JAN 24

“Audit processes work very well with Inflo and supported well by phone calls or Teams calls throughout the audit process. Outside of audits, advice on any matters financial is usually quick and helpful and never appears to be too much trouble. Any of the audit teams we have worked with throughout the years have always shown the same friendly professionalism that is supportive, fair and informative, which is crucial when and if things don’t always go to plan or unexpected outcomes occur. Thank you very much”

JADE, JAN 24

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