Running a building project is never easy. In fact on many projects – builders, site managers, foreman, construction directors and draughtsman are involved in solving problems for their clients. And solving problems for their clients could mean that their company qualifies for R&D tax credits for construction. The proof is often in the pudding – 8% of R&D claims last year were in the construction industry – with an average claim of about £54,000.
There are currently thousands of construction companies across the country working on projects using cutting-edge techniques or developing advances to existing techniques. Although the majority of these could be financially benefiting from valuable R&D Tax Relief, many are unaware that the projects they are undertaking qualify for this support.
What qualifies as R&D in Construction
To qualify for R&D tax relief – you need to be operating from a limited company. You also need to have performed work that has led to a technical advance in your field. I’ll save you from the technical jargon and give you some examples of work that could qualify:
And those are just some examples. We regularly work with construction companies, helping them claim for all kinds of projects.
Case Study – Celtic Construction Company
This client didn’t think their work would qualify for R&D tax relief, and didn’t want to waste any time trying to make a speculative claim. However, after a short meeting with one of our expert R&D tax consultants, we pin-pointed 2 projects that qualified for tax relief.
The first was the development of a bespoke soakaway drainage system, to allow water to soakaway and be held under the strip foundations of a building on a waterlogged site with limited space for a full soakaway.
The second project required adjustments and improvements to a buildings structure to allow it to be erected on shaley ground with a significant slope. Both of these projects were successful and took place over the last 3 years – and thanks to their consultation with Zest – the Celtic Construction Company were able to quickly access £40,000 of tax repayments and reductions.
Could Your Construction Business Qualify for R&D Tax Credits?
Find out if your business could qualify for R&D tax relief, with a 15 minute, no obligation consultation. We’ll talk about what work you’ve done and how much you could claim. Then you can decide how you want to proceed.
Find out how how companies can meet the deadlines for R&D tax credit claims and all the key R&D tax relief changes coming into place in 2023.
Costs involved in R&D are tax deductible and there are two ways in which R&D costs can reduce a companies Corporation Tax liability. Firstly – with the usual deduction of 100% of the cost from your companies profits. In addition, the R&D Tax Credit scheme allows a further deduction of 130% of eligible R&D costs, […]
Chancellor Jeremy Hunt has announced a series of changes to the UK research and development (R&D) tax relief regime, including a cut to the deduction and credit rates for the SME scheme, the R&D tax credit. The rate of the large company scheme, the R&D expenditure credit (RDEC) will be increased from 13% to 20%, […]