
Chris Knott
Partner and Head of CP Innovation
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The automotive sector is always innovating be it in new materials, durability and beyond. Don't miss out on claiming R&D relief.
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.
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 25 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.
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.
Projects that include some element of “change” qualify. We’ve looked to make something different, better in some way (quicker, lighter, stronger, smaller).
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.
A broad range of projects can meet the Government’s R&D definition, for example:
1. Design and development to improve vehicle performance:
2. Automation of manufacturing processes
3. Value engineering to reduce cost whilst maintaining performance
4. Process development to:
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
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.
Chris Knott
Partner & Head Of CP Innovation
“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”.
“Great communication.”
“Although the service we have received has been extremely good, there has been long delays in partner reviews.”
“Great relationship with Audit Partner and Audit Manager which means resolutions are reached quickly on difficult and complex issues. The accounts are put together in an efficient and well presented manner. The audit team generally adopt a logical and pragmatic approach. Only real negatives were that Kennedy audit was a more a drawn out process than perhaps it needed to be. Reconciling the consolidated accounts back to the Cooper Parry calcs was complex and there were some small discrepancies. As discussed with the Audit Partner I do have some concerns on the level of fees.”
“Great conference, helpful team and super service. Thank you.”
“The account were turned around quickly, and we were kept up to date with the progress of the audit”
“Easy communication, always get back to me promptly, provide advice when needed, like the Inflo system very user friendly.”
“The recent external audit and financial statement preparation were executed with professionalism and thoroughness. The auditor team demonstrated strong technical expertise and diligence, ensuring the process was both comprehensive and transparent. Their approach to testing, particularly in collaboration with the ASCL PD team during the first week, was highly effective and contributed to a smooth progression of the audit work, especially given its proximity to the annual conference. One area of improvement would be the timeline planning. The current schedule presents significant pressure in ensuring all necessary work is completed within tight deadlines. We have already discussed the potential benefits of moving some of the audit activities forward and setting clear dates in advance. Proactively scheduling key milestones would allow for better resource allocation and smoother execution. Another area of improvement would be the team working with their internal colleagues to check the partial VAT and advise on the changes to make for the next financial year. Additionally, the format and content of the audit findings report received positive feedback from elected officers. Its clarity and structure enabled effective review and discussion, reinforcing its value in financial oversight. Overall, the service provided was impressive, and the auditors’ commitment to delivering a high-quality review is appreciated. With a few refinements to planning and scheduling, the process could become even more efficient in future audits.”
“Great team, fit well into our office, professional approach whilst both friendly and very supportive. Pleasure to work with.”
“Communication was excellent and timely and the upload and action processes very smart and effective. Audit staff were friendly and helpful throughout the process.”
“Just very easy to deal with, all very relaxing to be honest!”