A partnership between the North East Automotive Alliance (NEAA) and Lumo Tax, has helped companies claim over £870,000 in tax credits since 2017.
The NEAA and Lumo Tax have assisted NEAA member firms, such as Komatsu UK and Envision AESC, to make research and development (R&D) claims. In the last year, seven claims were made by NEAA members and tax savings of £530,255.26 were achieved, equating to an average saving of £75,750.75 per company.
Lumo Tax helps companies understand and capitalise on R&D credits to fund their futures. R&D tax credits are a government tax relief that rewards innovative UK companies. On average, 33p in the £1 of all qualifying costs can be claimed back.
According to recent reports, the North East has the most innovative businesses in the UK and more businesses are claiming R&D tax relief in the region than anywhere else in the UK.
The North East Automotive Alliance (NEAA) is an industry-led cluster group, established to support the economic sustainable growth and competitiveness of the sector in the North East of England.
It is working with a number of specialist providers who can offer increased profitability to its members and in the current climate there is a much greater emphasis on the reduction of fixed and variable costs. With this in mind, it has secured the following saving schemes that members can utilise including Energy, R&D Tax Credits, Predictive Maintenance and Foreign Exchange Risk Management.
Paul Butler, chief executive of the North East Automotive Alliance, said: “As well as providing support to member organisations, the NEAA has also benefitted from Lumo’s advice when it comes to R&D tax credits.
“The region is world renowned for automotive manufacturing, with new and emerging technologies such as advanced propulsion and connected and autonomous vehicles and it is positive to see that North East businesses are claiming more R&D than anywhere else in the UK.
“Firms that spend money on developing new products, creating new processes, or enhancing existing ones, would benefit from the expertise of Lumo Tax.”
Graeme Watson, R&D business support analyst at Lumo Tax, said: “We have been working in partnership with the NEAA for in excess of five years now, its collaborative approach to R&D with member firms, really helps cement the benefits of a successful R&D and how it can fund future growth. The NEAA took time to understand our R&D offering and our core principals within this field. With its vast automotive knowledge and standing within the industry, members really listen to what the NEAA has to say, which only serves to strengthen our partnership and ultimately deliver more benefit to their members.”