Datafox specialise in claiming Research and Development Tax Credits for all businesses involved within the automotive industry.
- Within the Automotive sector examples of eligible activities vary from companies focused on reducing CO2 emissions to the racing sector, with automotive companies researching technological advancements to drive incremental gains.
- Generally, projects that involve a long start up period and may have unusually high costs or involve large scrap production indicate eligible R&D work.
- Design and development of new machine prototypes offering functionalities that are not easy to achieve.
- Tests to improve process efficiencies and reduce waste/costs.
- Research into new technologies to improve fuel efficiency and emission reduction.
- Resolution of integration complexities due to undesired interactions between various systems and multiple components (e.g. electronic components).
- Development of tuning techniques in order to achieve performance gains.
- Testing of scale models or prototypes due to substantial increase in size or speed, which creates new uncertainties in performance and operation (including testing software etc.)
- Development of new on-site inspection techniques or products.
What is R&D Tax Credit?
Introduced by the UK Government in 2000, the R&D tax relief scheme is designed to encourage innovation and global competitiveness by allowing companies to reclaim some of the money invested in qualifying research and development. SMEs can recover up to 26% (if in profit) and 33.35% (if loss-making) of all eligible R&D expenditure. Large companies/ organisations can benefit from an after-tax benefit of 9.72% of the qualifying R&D expenditure. Many UK organisations miss the opportunity to reap the potential rewards offered by HMRC’s R&D Tax Credit scheme.
The HMRC R&D Tax Credits guidance notes are set out in a document hundreds of pages thick and updated after almost every budget. Even if you manage to weigh through this yourself, chances are you’ll miss out on maximising your claim or worse, over-claim which could result in an HMRC investigation. Why the process is best served best by experts, who submit such claims on a daily basis.
Ready to apply?
If you’re ready to apply for your R&D tax refund, please call us on the freephone number below or use this contact form and one of our helpful team will be in touch to help.
Mini Case Study:
A brewing company that brews beer & operates some pubs on the south coast of England. The claim processed by the expert Datafox team relates to challenges to meet two independent issues regarding regulatory compliance: in the first instance, the brewer was required to invent a custom solution to the discharge of effluent into the sewer system after an issue was raised by the local water company. In the second instance, the brewer was required to design & install a bespoke extraction & air filtration system into the kitchens of one of their pubs. To meet the former requirement, a number of off-the-shelf solutions were tried but found to be wanting. In the end, the brewer had to make modifications to an Oil Tank system to allow capacity for effluent to be held during periods of excessive flow so that filtration systems could cope. To meet the air filtration requirement, the brewer had to work closely with subcontractors to design a system that would fit into an old building, and that would satisfy local authority & DEFRA regulations.
A successful claim was made with the brewer receiving a substantial cash back payment from HMRC with eight weeks.
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