Blogs/Vlogs

Is your dealership missing out on R&D tax relief?

It is a common misconception that R&D relief is only available to scientists wearing white coats and goggles. In reality, the relief is available across a complete range of industries, including automotive dealerships.

With Covid-19 triggering an acceleration in digital developments, there is a greater need for showrooms to be well represented online. This has led to advances in the quality of photography, together with the production of high quality videos, so that the buyer’s experience is enhanced. Dealerships can have large numbers of vehicles to list online, so any system has to be capable of uploading vehicle details in a timely and efficient manner.

Systems also have to be linked together, such as integrating stock management with online sales, emails, servicing and accounts, so that the whole customer experience runs smoothly. For example, any information which a customer obtains online should also be consistent with the information obtained within the dealership, such as vehicle pricing and vehicle specifications.

Car dealerships are also always looking for new and innovative ways to advertise and inspire customer purchases. Many dealerships, therefore, took the opportunity during lockdown to carry out refurbishments to their showrooms. This may have included creating elaborate displays, so that showrooms stand out against competitors. These displays may use materials in a way that has never been implemented before. The development may have involved the creation of sketches using 3D models using computer-aided design (CAD) programs. Prototypes may then have been created, to see whether the development is feasible. The development may also include multimedia features, such as illuminated alcoves and shelving. Other areas of development may have been carried out within workshops with protoypes developed using different materials.

Creating new software systems, innovative showroom displays and new tools are all examples of things which can be eligible of R&D tax relief. So if you have not yet explored the relief, it is highly advisable to do so.

Want to know more?

In our 2022 Automotive Outlook, we examine the principles of R&D and consider what expenditure can qualify for the relief and how you can claim. Download our Outlook and turn to page 15 to learn more.

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