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We still can’t get our heads around why companies don’t claim for their R&D! With over quarter of a million construction companies operating in the UK, only 3,055 claimed their R&D expenses… we ask why?
We know that there are a lot of nuances regarding this incentive but that’s what specialists like ourselves are on the market. R&D is everywhere without you even necessarily realising this. We can conduct a casual meeting with yourself to understand your business, how you operate and what costs you’ve incurred that could qualify.
Use our free calculator today and you could have a significant benefit amount within 28 days!
Find out what you could claim for in construction
Creating a building using a new environmental methods is one way to be eligible for the R&D Tax Credit incentive. If you have created a building through more environmentally friendly and bespoke methods, then your project screams R&D!
You can claim R&D on creating or improving existing construction techniques. If you have developed a new process that allows you to construct in a more efficient way etc. then your project most likely qualifies.
If you have developed a new machine that improves productivity and it's one of its kind, get in touch with us to discuss your claim! Remember, even improving existing machinery to make your process more efficient can qualify, as long as this improvement is not already on the market.
If you are creating or experimenting with new materials, you could qualify to claim. Remember, even if you have worked on developing a new material that's lighter/more endurable etc. but you haven't been successful, you could still claim for your costs. Loss-making and unsuccessful R&D projects qualify as long as you have incurred a cost.
In short, yes. The best thing to do is to figure out how much R&D you are doing, you should then be able to assign a proportion of your light, heat, water and power that was used for your R&D and amend your claim accordingly.
One of the biggest portions of claims for the Research and Development tax incentive is circled around staff costs. Whether that might be people directly involved within the R&D or others who might be indirectly involved.
No, you do not need to create a new product to qualify for R&D Tax Credits. For example, if you tweaked a cleaning product which had an advancement, this could be claimed for the R&D incentive. Anytime you have attempted an advancement in the construction sector, whether this worked or not, could still have the potential to be a qualifying activity.
In 2020, there were only 3,055 claims processed by HMRC for the Construction sector (out of quarter of a million), but on average you could receive £57,283 for your successful claim based on current statistics.
Where do we start? You can claim for:
Yes! You are able to claim for unsuccessful projects as this falls under the ‘uncertainty’ you faced during the Research and Development you undertook.
Examples of uncertainty for R&D are;
Find out how simple it is to claim your Software and Technology R&D Tax Credits.
Construction specific costs that you cannot claim for
If you have come up with a way to improve a process due to compliance issues or regulations such as HSE, this won't qualify under the incentive as the project did not start with this intention. Your project must be designed for the innovation to be at the forefront.
If your new product is developed by copying your competitors' in order to catch up on market share, your project won't qualify as the innovation isn't there.
Always make sure that your product development contributes to the advancement of technology or science. Without an actual advancement, your expenditure won't qualify.
This seems like an obvious one but it's always worth reiterating; if your R&D has been state funded, then non of the development costs will qualify for the incentive as your company hasn't incurred any costs.
Depending on your company size, you may qualify under the RDEC scheme (Research and Development Expenditure Credit) or under SME incentive (Small Medium Enterprises).
Find out more about your eligibility today.
Don’t hesitate on starting your claim, you could be entitled to money you didn’t realise you could have. With Counting Kings simple process you don’t need to worry about your time invested in the claim.
We have you covered!