What are R&D Tax Credits?
R&D Tax Credits, introduced by the UK government in 2000, are designed to promote innovation by providing tax relief to companies engaged in scientific or technological advancements.
R&D for tax purposes involves projects aiming to achieve progress in these fields by resolving uncertainties. Qualifying activities include various forms of innovation and development.
By claiming back a portion of their R&D expenditure, businesses can reduce their tax bill or increase taxable losses, thus gaining valuable funding to reinvest in resources and further advance their R&D efforts. This incentive acts as a mechanism to help companies foster innovation and drive growth.
Common R&D Eligibility Within The UK Automotive Industry:
By meeting the criteria for R&D Tax Credits, your company can gain access to substantial financial rewards, enabling you to accelerate research and development efforts, invest in new technologies, hire additional staff, and drive overall growth.
You may qualify for Automotive R&D activity if you meet the following criteria:
Vehicle Design and Development: Designing and engineering new vehicle models or significantly improving existing ones to enhance performance, safety, fuel efficiency, and comfort.
Advanced Propulsion Systems: Researching and developing alternative powertrain technologies, such as electric vehicles (EVs), hybrid systems, hydrogen fuel cells, and advanced internal combustion engines.
Autonomous and Connected Vehicles: Innovating in autonomous driving technologies, vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication systems, and developing connected car technologies.
Lightweight Materials and Structures: Developing and integrating lightweight materials and advanced structural designs to improve vehicle efficiency, handling, and safety.
Energy Storage and Management: Researching and improving energy storage technologies, including batteries and energy management systems for electric and hybrid vehicles.
Safety and Crashworthiness: Advancing vehicle safety features and crashworthiness through new designs, materials, and technologies to protect occupants and pedestrians.
Emissions Reduction: Developing technologies and systems to reduce vehicle emissions, comply with environmental regulations, and improve air quality.
Infotainment and User Experience: Innovating in vehicle infotainment systems, human-machine interfaces (HMIs), and enhancing the overall user experience inside the vehicle.
Testing and Validation: Conducting extensive testing, simulation, and validation processes to ensure vehicle reliability, performance, and compliance with regulatory standards.
R&D TAX Credit Schemes
The government's R&D criteria are intentionally broad. Regardless of your company's size or sector, if you are supporting scientific or technological innovation, you may be engaging in qualifying activities. The R&D Tax Credit Schemes are designed to support and incentivise innovation across various business sizes.
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Our R&D Tax Claim Process
Discover our streamlined process for securing R&D tax credits. We ensure complete transparency in our services, with no hidden fees.
01
Discovery and Assessment
Your ATL contact, supported by our specialists and consultants, will gather the necessary information. Our team will then help identify qualifying R&D and work with you to prepare a successful claim.
02
Building your R&D Tax Credit Claim
We will build your claim, add the required evidence for HMRC, and detail your qualifying activities and costs, ensuring compliance for a strong claim.
03
Review and Submission to Process
You'll get reports for approval with breakdowns of our findings. After submitting your claim, we'll liaise with HMRC, providing ongoing support.
04
Receipt of Benefit Funds and Reinvestment
The R&D tax relief can come in the form of a tax credit or a reduction in Corporation Tax liabilities (or both).