Don’t think your business would qualify for R&D funding? Think again! Read this case study: Construction
To many, and very understandably, R&D Tax Credits sound as though they could only be applicable to a room full of scientists in white lab coats deep in a voyage of scientific discovery. We are here to show you that this is not the case at all. According to the government’s latest figures, there were 52,335 R&D Tax Credit claims filed in 2016 - 2017. The scheme paid out a total of £3.5 billion to companies that met the criteria of R&D for tax purposes, you could easily be one of them!
However, out of those 52,335 claims, only 1,940 were filed by Construction Firms, despite the fact that there are over 300,000 construction-based businesses operating in the UK. Looking at these figures, it’s clear that the UK construction industry is potentially losing out on many millions of pounds each year in unclaimed funds due to not taking advantage of the R&D Tax Credits scheme.
Construction is full of challenges that require inventive solutions. R&D activities usually relate to the innovative use of materials or overcoming problems on site, examples such as these qualify for government funding. Often there are unique circumstances in which only a bespoke solution will meet stringent performance standards. Take a look at what qualifies for R&D funding from the Government Website and see for yourself, and don’t worry about having to explain how you achieved these, that’s where we do all the work for you:
Qualifying for R&D tax relief spans the full sector, including development of, for example:
Groundwork, substructure and Environmental Issues;
Parking and transport issues;
Energy efficiency of homes, how this was achieved;
Planning conditions imposed by local authorities and how these were overcome;
Any modular build element;
Making properties disabled-friendly;
How space was maximised in a project;
Any issues with services on site; or,
Any conservation/listed building issues.
R&D Tax Credits reward this kind of innovation. The types of construction activities that may generally qualify include work with new or improved materials, processes, and techniques. There’s potential for an R&D Tax Credit claim wherever business is taking a risk and attempting something challenging. New systems to support just-in-time logistics; the salaries of technicians, and even a percentage of subcontracted work, can be included too. This should all add up to a significant claim for your firm. That’s money to invest in accelerating R&D further, hiring new staff and ultimately growing your business and watching it flourish.
This blog post explores just one scenario of how sectors that may not seem immediately eligible, such as Construction Firms, are in fact highly eligible for the R&D Tax Credit Scheme. If you would like further information on how we can help you apply for this funding, or if you have any other questions, please get in contact with us at Recoup for a free consultation.