R&D Tax Credits in Construction – Daniel James Tax

R&D Tax Credits in Construction

It is predicted that between 2020 and 2024, the construction industry will be worth 236.8 billion. This means that this could be an extensive aspect of R&D.

The construction industry can be broken down into various categories including public sector housing, private sector housing, commercial and industrial, infrastructure, and much more. Out of these categories, there are countless expert companies such as manufacturers, engineers, fitters, trades, builders, and other suppliers.

Check if you are eligible for R&D Tax Credits

By answering the questions below we can provide you with personalised online eligibility check.

Step 1 of 6: Your Company Details

Is Your Business a Limited Company?
Research and development tax credits are only available for limited companies registered in the UK.


So… what is R&D?

R&D or Research and Development pertains to uncertainty. If you are going to generate the process of researching or developing then you can qualify for a claim.

In this sector, the average value of a claim was more than £48,000, however, a lot of businesses are not aware of this scheme. In fact, only 5% of qualified limited companies have submitted R&D claims, as a result, each year there are billions of pounds of tax relief that are left unclaimed.

What makes me eligible?

Although, recognition of the R&D scheme has expanded, yet there are still numerous misinterpretations regarding it.  For instance, most companies think that this can only be claimed by those who are doing science in a laboratory.

The reason behind this is that HMRC does not have clear guidelines on what can be claimed and how to do it. This is very important since this scheme can be relevant to any sector and not specifically on the ones which are lab-based. There are various ways that eligible activities can be accomplished in the construction industry. This could occur during the prototyping and design processes when the projects are being executed on site.

Your construction company can be eligible for R&D tax relief if:

  • You have spent some money on accomplishing these projects.
  • You have implemented research and development in creating new processes or products.
  • You are a limited company in the UK that is subjected to corporation tax.

What are some examples of projects that are claimable within the construction sector?

Examples of R&D Projects within the Construction sector:

  • Creating safer techniques and practices.
  • Investigating energy-saving methods.
  • Generating efficient construction procedures.
  • Adapting and discovering new ideas for current traditional materials.
  • Researching and utilising new materials.
  • Overcoming traditional difficulties using new approaches.
  • Investigating and generating new tools.

Did you know?

  • Ever since this legislation was introduced in 2002, there were over £27bn successful claims from HMRC.
  • No matter if a company is loss-making, it can still receive a cashback based on the legislation, provided that they were conducting eligible R&D work.
  • When it comes to investing in R&D work, companies are not given any required minimum or maximum amount when making a claim for R&D tax relief.