Revealing the Potential of R&D Tax Relief in the Construction Industry
Published 12 May 2021
Before getting in touch with Recoup, Williams Build and Design Limited (WBD Ltd) was one of the many construction companies leaving millions on the table in missed R&D tax relief.
Learn what we did to make WBD Ltd first claim a simple and painless process. Also discover what the Director, Julian Wilson, had to say about his experience working with us.
Who are Williams Build and Design Limited?
WBD Ltd is an established construction business carrying out work in the commercial, retail and industrial sector.
It works with customers from a build and design perspective, catering for a range of requirements including full turnkey projects from inception to completion with insurance warranted design.
Such projects are executed by a team of highly experienced and trusted contractors – often led by WBD Ltd’s recently appointed Director, Julian Wilson.
Building better customer experiences
There are lots of opportunities for construction companies to revolutionise the work they do through research and development, and in the process, deliver faster and easier experiences for their customers.
WBD Ltd has been leveraging these opportunities for a while now, showing the industry how it’s done. Most often its innovative activities stem from solving tricky customer problems by pushing the boundaries of conventional solutions.
For example, a recent industrial client wanted to create a loading facility to fulfill a new order. Problem was, they had no space for the build. So it was up to WBD Ltd to design and construct an unconventional type of loading facility to overcome such limitations while also ensuring consistent productivity for the client.
Such work required plenty of experimentation and thinking outside the box, putting it firmly in the R&D realm.
What’s more, WBD Ltd regularly hires structural engineers who use innovative software to speed up its building process. The software used also helps the business honor the warranties it provides through preventative risk management. Again, all the costs associated with this, including subcontracting fees, are typically eligible for R&D tax credits.
First R&D claim
Prior to connecting with Recoup, WBD Ltd had never put in a claim before. In fact, Julian wasn’t aware of R&D tax relief in the first place like so many business owners we encounter.
It was Claire Leaman of Bee2Bee Consulting who put Julian in touch with us. Then it was our job to demonstrate the impact R&D tax credits can have on his business.
Working closely with our chartered tax advisors, we helped Julian draw out past projects that could be eligible for R&D tax relief. We also illuminated the costs WBD Ltd could claim for, including:
- 65% of the hiring subcontractors costs
- materials and consumables that are used up by the R&D process
- certain types of software used to drive efficiency
Finally, we explained to Julian what financial information we would need to put in a claim, such as a list of the business’ CIS contractors and full accounts for the last two years. As soon as we collected that information, we could put in the claim, marking an end to Julian and his team’s input.
Here’s what he had to say about our process.
“As straightforward as you could get”
“I really appreciated how simple Recoup made the process,” explained Julian. “They knew exactly what questions to ask to draw out the right information, minimising the time I spent on the call.
“Recoup also answered any questions I had around R&D with simple, easy-to-understand explanations. I went into the call with zero knowledge about the tax relief scheme and came away feeling highly informed,” he continued.
Julian did highlight how the process is much easier when you’re organised, “Your main responsibility is getting the right information together. Recoup made it easy to understand what we needed. How much time you dedicate to getting that information depends on how good you are at bookkeeping in the first place!”
R&D tax credits: a strategic tool
Approximately eight weeks after Julian’s first call with us, he received a successful outcome. But how has the business used its R&D tax credits?
“We have reinvested the funds into the business as part of our working capital,” Julian told us. He also said, “We’ve included R&D tax as part of our accounting process moving forward owing to the success of our claim.”
He continued, “I’m confident it will help us grow the business organically as we deliver more successful projects through this extra funding and innovative research. I want other businesses to benefit too, which is why I’ve recommended Recoup to other companies since putting in a claim.”
Want to benefit from R&D tax relief like WBD Ltd? Call us now on 0800 3277514 to find out if you’re eligible. Or use our online Eligibility Checker.
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