Construction R&D

R&D Tax Credit Examples, Hints & Tips To Maximise Value
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Construction

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. 

4 Project Examples

Below are project examples that would qualify for R&D tax credits in construction

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New Materials

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.

Machinery

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 R&D 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.

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Construction Techniques

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.

New Environmental Methods

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!

Costs Which Don't Qualify

Sometimes the parts you may think qualify, don’t. Here are some examples of what doesn’t qualify in the construction sector.

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Market share catch-up

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.

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Regulations

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.

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State Funding

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.

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Purchasing Land

Purchasing land is another cost which will not qualify for the incentive. So for example, if you purchased land to develop the idea the land will not be allowed to be claim for.

How much could you receive in

Construction R&D Tax Credits?

Use our free calculator today and you could have a significant benefit amount within 28 days!

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Download our R&D Tax Relief Information

Find out how simple it is to claim R&D Tax Credits in the Construction sector 

Start Your Claim With Counting King Today!

Don’t hesitate on starting your claim. The government would like to say well done for your innovate hard work so check if you could be entitled to the money they are offering to support your business. With the Counting King simple process, we will go through if you are eligible and if you are we will go through the process and work out the amount you can claim.  It is a process we are experts in and will take the lead on producing for you.

We have you covered!

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Quick Q&A

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 made an advancement to a piece of machinery that meant you could either manufacture something much quicker or with decreased carbon footprint, those are the kind of costs you could claim for. As long as the amendments are bespoke and improve your whole sector, you can claim for costs incurred during your R&D process. 

In 2020, there were only 3,055 claims processed by HMRC for the Construction sector, but on average you could receive £57,283 for your successful claim based on current statistics. The whole sector claimed £175m last year so you can really tell that it’s worth putting your claim through. 

Where do we start? You can claim for:

  • Development of new construction equipment or the improvement of the equipment that already exists
  • You can also claim for any adjustments or modifications that have been undertaken on component parts of machinery, and their adaptation to other machinery
  • Any research and development you have undertaken to maintain compliance to changing regulations in your field
  • Development of new technologies that improves capacity, workflow, compliance with regulations, efficiency
  • Development of new materials that can have new applications in the construction sector

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;

  • Attempting to fix an issue with machinery that does not meet your manufacturing requirements however being unable to resolve the issue
  • Managing environmental factors, decreasing your carbon footprint during your manufacturing process

Find more about R&D in your sector!

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.

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