Member Article

Chantrey Vellacott helps automotive firm to £500,000 tax boost

A Midlands-based automotive specialist is up to full speed when it comes to Research and Development (R&D) tax credits after successfully claiming £500,000.

Zytek Automotive, a world-leading supplier of automotive control systems, powertrain management, electric and hybrid-electric vehicles, and racing engines, has made the substantial claims from HMRC with support from Chantrey Vellacott’s renowned R&D team.

The firm, which employs around 150 at its headquarters on Fradley Business Park near Lichfield, had clawed back money through the scheme prior to working with the national accountants and business advisers.

But they realised that they were missing out on thousands of pounds of relief available to them and spoke to advisers at Chantrey Vellacott.

The firm assessed the innovative processes and research and development work throughout the business and, since starting working with Zytek in 2014, has helped them make substantial savings.

Kerry Diamond, chief financial officer at Zytek Automotive, said the R&D success had led to Chantrey Vellacott also being appointed as the firm’s auditors.

“The relationship with Chantrey Vellacott started out as being purely around R&D tax credits,” she said.

“We’d already made claims, although when the firm came to see us they believed they could support us to earn back far more than we thought we were eligible for.

“After a full review of our R&D activity we were able to make a substantial claim going back two years, and further subsequent annual claims have also been successful.

“The support from Chantrey Vellacott has been excellent and we’ve gone to appoint the firm as our auditors and they’ve also us supported us with further grant claims too.

Paul Fenner, partner at Chantrey Vellacott’s Birmingham office on Calthorpe Road, said the firm is delighted to have supported the growth of a market leading company.

“Zytek is a strong name in the automotive world, famous for its work with Gordon Murray on electric city cars, producing engines for major racing teams, along with partnering with some of the biggest names in the industry,” he said.

“We’re delighted to have built a strong relationship with Kerry and the management team and supported the growth of the firm through R&D tax claims, grant funding applications and general tax and audit guidance.

“Our R&D team has built a strong reputation of achieving success with 100 per cent of claims and realising the full potential of the relief which is open to a multitude of organisations for varying projects and processes.

“Any projects that seek to achieve an advance in science and technology qualify for R&D and we’re pleased to be supporting innovators such as Zytek to earn back funds they are entitled to.”

This was posted in Bdaily's Members' News section by Chantrey Vellacott .