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R&D Tax Credits for Accommodation

Any accommodation business owner will know that the costs of developing a company can be daunting. There’s the expense of buying, developing, and renovating the property, plus purchasing equipment, fit-outs, and ongoing overheads. 

There’s a lot of R&D activity behind the scenes in accommodation, yet much of it goes unclaimed. You could also be missing out on claiming back up to 33% of R&D costs to put straight back into your business to spend however you choose. 

The tax credits that you could be eligible for — in the form of a lump sum or reduced corporation tax bill — can deliver a valuable boost to your company’s bottom line. 

According to the government, the R&D tax credit scheme is looking to aid projects that make an “advance in science or technology through the resolution of scientific or technological uncertainties”. At first sight, this definition could put some accommodation business owners off.

Yet, the wording is broad enough to encompass a wide range of activities and investments. You can submit a claim where you’ve brought a brand new product or service to market. Less tangible solutions such as innovative software, algorithms, or online processes can also qualify.

Carrying out work on listed buildings and investing in specific techniques and processes to preserve them could be eligible for the scheme. To make the most of the money you put into your business, you can seek advice at an early stage so that we can begin to capture the information needed to ensure your claims are successful — with maximum return.

woman sitting in kitchen

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

  • Sustainable cleaning, sanitising, and laundry techniques
  • Guest interaction platforms, including bespoke mobile apps
  • Equipment and machinery to ensure food and drink is handled safely
  • Contactless check-in/check-out and keyless access to buildings/rooms
  • Using utilities, water, fuel and energy more efficiently with the introduction and integration of new technologies
 

Key questions on R&D tax relief answered

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?