R&D Tax Credits for
Construction activity and R&D Tax Relief.
Research and development is all about seeking advances, overcoming challenges and resolving uncertainty. In construction projects, all of these things commonly arise - whether its unforeseen setbacks, unexpected inspiration, supply chain delays, and so on.
Qualifying construction expenditure for R&D Tax Credits.
Innovating, or trialling, novel materials for construction projects.
Integrating new or improved technology into existing buildings.
Adapting existing equipment or construction processes to adhere to new regulations - such as fire safety.
Introducing and deploying innovative mechanical and electrical systems into construction projects.
Modifying existing construction components and fittings.
Developing new or advanced equipment for use in current or future construction projects.
R&D Tax Credits, explained.
What are R&D Tax Credits?
The Government implemented the Research and Development Tax Credits (R&D Tax Credits) Scheme to help fuel innovation in the UK, by rewarding companies bringing new products, processes or services to market.
How do R and D Tax Credits work?
Companies that spend money developing new products, processes or services - or enhancing existing ones - are eligible to claim R&D Tax Credits. If you're spending money on innovation, you can file for R&D tax relief and receive it either a cash payment or a Corporation Tax reduction from HMRC.
Is my construction business eligible for R&D tax relief?
To make an R&D Tax Credit claim, you must meet the following criteria:
Be a UK limited company that is subject to Corporation Tax
Have carried out qualifying research and development activities
Have spent money on these activities
Our end-to-end R&D Tax Credits Service.
The HMRC-recommended approach to R&D Tax Credits.
Fixed Fee, no upfront costs.
We take the stress away from claiming R and D Tax Credits. Our specialists complete both the Financial and Technical reports and submit your R & D claim to HMRC so you don't have to.
We're so confident in our end-to-end R&D Tax Credits service that our fixed fee is charged only upon success.
R & D Claim completion within 3-5 working days
End-to-end R&D Tax Credits service
Financial & Technical Report completion
Dedicated Account Manager & R&D Tax Specialist
100% Success Rate
Full HMRC Enquiry Support at no extra cost
Trusted by construction companies.
FAQs: Construction R&D Tax Credits.
How much can construction companies claim under R&D Tax Credits?
R&D Tax Credits allow profit-making companies to receive a tax benefit of up to 21.5% of qualifying R&D costs. But if you're loss-making, you're entitled to reclaim up to 27% of qualifying R&D costs as cash!
Can my company claim R&D Tax Relief if the construction project is unfinished?
Absolutely! Construction, in particular, has a lengthy timeline. Fortunately, businesses can claim R and D Tax Relief throughout the entire process, from start to finish. From the first year that you incur R&D spending, you can claim R&D Tax Credits.
Can I claim R&D tax relief on construction subcontractors?
Yes, costs for consultants and contractors anywhere in the world can be claimed.* Under the SME R&D Tax Credits scheme, you can reclaim 65% of the costs paid to any unconnected subcontractor working on eligible construction projects.
*As of April 2024, you can only claim subcontractor costs from construction occurring within the UK.
Are R&D Tax Credits taxable?
If your construction company claims R&D Tax Credits under the SME scheme, these are non-taxable and will be shown on your income statement as a corporation tax deduction or as a credit.
However, construction R and D Tax Credits claimed under the RDEC scheme are classed as taxable income and will be shown as above-the-line income in your accounts.
How often can construction companies claim R&D Tax Credits?
Construction companies, like any other sector, can claim R and D Tax Credits every financial year, right up until qualifying R&D activities are finished. There is no limit on the number of years you can claim R&D Tax Credits! In addition, and though this will have to be submitted as two separate R&D claims, you can claim back up to two years prior.
How long does it take for Claim Capital to complete an R & D Claim?
After receiving sufficient information, we aim to complete your R&D Tax Credit claim within 3-5 working days. Once your report is finalised, we are authorised to submit your claim directly to HMRC in-house, eliminating the delay that comes with accountants or third parties.