Companies in the UK construction industry are eligible for a much greater share of the government's Research and Development tax relief scheme, than they are receiving. Construction firms work right on the cutting edge of innovation every day. In fact innovation comes so naturally as part of the job that many companies don't even realise they qualify for construction R&D tax credits. By not claiming you could be missing out on the average construction SME claim worth over £40,000.
Don't be put off by the name. Many people wrongly assume R&D tax relief is only for "science projects". It's not. It's the single biggest incentive of its kind and it applies to any kind of innovation so long as it solves a problem in a way that no one else has and it took expertise to get it done.
Another misconception is that the scheme only applies to "physical inventions". In fact it applies to a huge range of innovations including processes and non-physical developments such as software. If you're not sure if what you're doing would qualify for R&D tax credits then get in touch. It's better to find out than to lose out.
What Construction R&D Tax Relief Means for You
If you've developed something could have an impact that extends outside your business, then the R&D tax relief scheme is there to support and reward you. That's why there's so much on offer if you qualify, such as:
An extra 130% deduction against on SME R&D costs.
A tax credit cash payment to help you cover urgent costs.
Large companies can benefit at 8.8% of their R&D costs.
Even if your R&D doesn’t go to plan, your claim remains valid.
Laying the Foundations
In construction innovation is almost just another word for your day-to-day business. Every project throws up its own unique challenges, and every problem you solve opens up new possibilities. What's so important to realise is that problem-solving like this is exactly what the government's trying to promote and reward. They just don't always do a great job of getting the word out. Simply put, you might have an R&D claim if you're:
Tackling obstacles in new ways.
Finding easier, safer or "greener" ways to work.
Making better use of existing technologies.
What Areas of Activity Qualify?
Unusual or difficult environmental or ground conditions - Each site is different and while standard practices are suited to most conditions, there are numerous instances in which a construction company is faced with conditions for which there are no established methods for tackling. They have no choice but to develop new methods and adapt tools and techniques before they can even begin. This can include, but is not limited to, challenges specific to:
Logistics and access
Health and Safety - Construction remains a dangerous industry and health and safety measures are continually being updated. As a result companies in the industry have to adapt to comply. This can result, for example, in advances in protective barriers, innovative scaffolding, platforms for safe working and automation of dangerous tasks.
Modern Methods of Construction (MMC) - Companies pioneering modular building techniques will be faced with a fresh set of challenges that has them delving outside of established industry knowledge, and as a result, their findings are of industry wide significance.
Building Information Modelling (BIM) - Central to the UK construction industry’s future ambitions is the adoption of information rich BIM technologies, process and collaborative behaviours that will unlock new more efficient ways of working at all stages of the project life-cycle.
RIFT Group has served the construction industries’ tax needs for over 16 years. If you have been involved in working in any projects that you think might qualify get in touch with us today. It's free to find out if you have a claim, so there's nothing to lose. RIFT R&D Tax Credits are experts in making R&D pay, and we pride ourselves on outstanding relationships both with our clients and HMRC.
It’s no secret that we’re heading into a critical time for the whole UK construction industry. It’s going to take an estimated 158,000 new jobs to hit the targets for infrastructure and housing needs...