The construction industry contributed £113 billion to the UK economy in 2017, underlining its importance in pushing the UK economy forward. The industry is constantly evolving with new technology, perhaps in terms of tackling difficult ground conditions, health and safety advances or going ‘greener’. It is, therefore, surprising that the construction industry only accounts for 2.5% of R&D tax credit claims being submitted to HMRC.
For most businesses, the relevant scheme is the one for small and medium sized enterprises. This provides tax relief for 230% of the costs involved in the research and development. If that results in a loss, the credits can be surrendered for a payable tax credit of 14.5%. In addition, for any capital expenditure incurred in respect of the R&D, 100% relief can be obtained.
For large companies, an alternate scheme is available, which provides an effective rate of about 10p in every £1 of qualifying R&D expenditure.
If you believe that something you have been working on could have an impact that extends outside of your business and can assist others, there is likely to be some form of reward available through the R&D scheme. The relief is waiting to be claimed, and we can help you claim it.