By finding ways to make builds faster, more cost-effective, safer and environmentally friendly, the construction industry is one of the most prominent players in research and development (R&D).
Yet, it’s one of the worst offenders for failing to claim R&D tax credits. You could also be missing out on injecting tens of thousands of pounds in R&D tax credits back into your construction business to spend however you choose.
One of the reasons why so many construction companies aren’t claiming is because of the stereotypical image of R&D. It sits firmly in the world of microscopes and white lab coats rather than hard hats and dirty overalls.
Construction businesses often see themselves as “doers” and problem-solvers, but rarely innovators.
When R&D is identified, it’s often found in the most technical areas of a construction business. Communicating which technological difficulties were encountered and what the company did to overcome them to HMRC can be challenging.
If a claim isn’t explained clearly, HMRC may ask further questions — a prospect that most business owners are keen to avoid. That’s why we’re here — to take those headaches away from you and manage the process from start to finish.
Key questions on R&D tax relief answered
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 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
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
About Easy R&D’s R&D tax credit claim process
Claiming R&D tax relief is a niche.
Here at Easy R&D, we’ll probe your company’s activities to reveal the true extent of your company’s R&D.
Averaging £54,000 per claim, we’re a business built around expert tax professionals, skilled technical report writers, and flawless processes to ensure your R&D claims are successful — with maximum return. You could even reduce your corporation tax bill to zero.
HMRC’s criteria for claiming is purposefully broad, so what qualifies may surprise you.
Interested in claiming R&D tax credits?