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.
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.
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:
Examples of R&D Projects within the Construction sector: