The construction industry is one of the building blocks of the UK economy but has been identified as seriously underperforming in claims made for R&D tax credits. This is despite growing demands for energy efficiency, carbon reduction and sustainability.

These demands require considerable research and development, all of which is likely to be eligible for the scheme.

Changing regulations continue to challenge the construction sector but R&D tax credits are a powerful way to pump some of the costs back into your business.

 

Interested in claiming R&D tax credits?

What activities can be included in a R&D project?

  • Defining technical objectives
  • Identifying uncertainties
  • Feasibility studies, reviewing new and competing technologies
  • Analysing, designing and developing the technology
  • Producing technical specification or other documents to explain and support the R&D project and advancement
  • Testing the product, process, service or software
  • Planning and managing projects
  • Administration, finance and personnel services specifically required to support R&D activities
  • Training to support R&D

Construction projects that may qualify for R&D tax relief include:

  • Creating or experimenting with new materials
  • New ways to implement energy saving techniques
  • Integrating new technology into buildings
  • Improving safety
  • Overcoming conservation issues
  • Solving technical problems that arise during or after construction
  • Using science or technology to improve user experience in modern buildings
  • Modifying existing components and fittings into bespoke projects

What expenditure can be claimed for in a R&D project?

  • Staff Costs – Employee costs (salary, national insurance and employer pension) are apportioned for their time spent on the R&D project plus any reimbursed associated business expenses
  • Software – Purchased for R&D purposes and costs apportioned for any subsequent use
  • Subcontracted R&D – You can claim 65% of what you paid your R&D subcontractor
  • Utilities & Consumables – Water, fuel, power and material used in the project
  • Prototypes – Produced for R&D purposes