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R&D Tax Credits for Construction

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?