Why construction companies should claim R&D tax relief
If you’re in the construction industry, you know how competitive and challenging it can be to deliver high-quality projects that meet the needs and expectations of your clients, as well as the standards and regulations of your sector. You also know how important it is to keep innovating and developing new solutions that can improve your efficiency, productivity, and profitability.
But did you know that you could be eligible for a valuable government incentive that rewards you for investing in innovation? It’s called R&D tax relief, and it’s a scheme that supports companies that work on qualifying research and development (R&D) activities in science and technology.
R&D tax relief can help you reduce your Corporation Tax bill or receive a cash payment from HMRC, depending on your company size and profitability. The amount you can claim depends on the type and scale of your R&D project, but it can be significant. For example, for every £100 you spend on R&D, you could get back up to £33.35 if you’re a small or medium-sized enterprise (SME), or up to £10.53 if you’re a large company.
Range of activities
You may be wondering what counts as R&D in the construction industry. Well, the answer is not always obvious, but it can include a wide range of activities, such as:
- Developing new or improved materials, products, or processes
- Solving technical problems or uncertainties
- Applying new technologies or methods
- Enhancing environmental performance or sustainability
- Optimising design or engineering solutions
Examples of R&D projects
Some examples of R&D projects in the construction industry are:
- Developing a new modular building system that reduces waste and carbon emissions
- Using drones or sensors to monitor site conditions and improve safety
- Creating a new software tool that streamlines project management and collaboration
- Testing a new insulation material that improves energy efficiency and fire resistance
- Designing a new bridge structure that withstands extreme weather conditions
If you have worked on any of these types of projects, or similar ones, you could be eligible to claim R&D tax relief. But how do you go about it?
The process of claiming R&D tax relief can be complex and time-consuming, especially if you’re not familiar with the rules and requirements. You need to identify and document your eligible R&D activities, calculate and maximise your claim amount, and submit your claim to HMRC.
That’s why we recommend working with an expert who can help you with the process from start to finish. We are specialists in R&D tax relief and we have helped many construction companies claim what they deserve. We can help you:
- Assess your eligibility and identify your qualifying R&D activities
- Prepare a technical report that explains your R&D project and its challenges
- Calculate your eligible R&D expenditure and maximise your claim value
- Submit your claim to HMRC and deal with any queries or enquiries
We offer a free consultation and a no-win no-fee service, so you have nothing to lose and everything to gain by claiming R&D tax relief for your construction projects. Contact us today and let us help you boost your business 🚀.
What do you think? Have you claimed R&D tax relief for your construction projects? How has it benefited your business?