R&D Tax Credits For The Construction Industry
The construction industry is renowned for its constant evolution, driven by advances in technology, materials, and sustainable building practices. With the UK government’s commitment to encouraging innovation, the Research and Development (R&D) tax credit scheme has been designed to support businesses in their pursuit of groundbreaking advancements.
In this blog post, we will delve into the statistics surrounding R&D tax credits in the construction sector and discuss how Veritas Noble is helping UK construction businesses maximise their returns on investment in innovation.
R&D Tax Credit Claims in the Construction Industry
- According to HMRC’s latest statistics, the construction industry accounted for around 4% of total R&D tax credit claims in the UK. While this may seem like a small percentage, it represents a significant increase in recent years and demonstrates the growing recognition of the importance of R&D within the sector. The construction industry claimed £375 million in research and development (R&D) tax credits for the year 20/21, reflecting the substantial financial benefits available to businesses that invest in innovative projects. Construction firms also spent £1.36 billion on research and development in the first part of 2018/19 – more than in the whole of 2017/18.
Average Value of R&D Tax Credit Claims
- The average value of an R&D tax credit claim in the construction industry is approximately £62,000. This figure highlights the significant financial boost that construction businesses can receive by claiming R&D tax credits. It is worth notving that the actual amount of tax relief a business can claim depends on several factors, such as the size of the company, the nature of the R&D project, and the eligible expenses incurred.
SMEs and R&D Tax Credits
- Small and medium-sized enterprises (SMEs) play a crucial role in driving innovation in the construction sector. In fact, SMEs account for around 85% of R&D tax credit claims within the industry. The R&D tax credit scheme offers enhanced relief to SMEs, enabling them to claim up to 33% of their eligible R&D costs as tax credits. This increased relief is designed to help smaller businesses overcome financial barriers and invest in innovative projects that can drive the industry forward.
The Role of Sustainability
- The UK government’s commitment to achieving net-zero carbon emissions by 2050 has placed sustainability at the forefront of construction R&D. As a result, many R&D tax credit claims in the construction sector are focused on projects that aim to reduce the environmental impact of building practices, such as developing energy-efficient materials, optimising waste management processes, and improving construction methods. By claiming R&D tax credits, construction businesses can significantly offset the costs of investing in sustainable innovations that contribute to a greener future.
Your Partner in Maximising R&D Tax Credits for Construction Businesses in the UK
As the construction industry continues to embrace innovation and invest in R&D, it is crucial for businesses to make the most of the available tax incentives. At Veritas Noble, we specialise in helping construction businesses in the UK claim R&D tax credits to support their innovation efforts.
Our team of experts has a deep understanding and work closely with our clients to ensure they maximise their R&D tax credits. By partnering with Veritas Noble, construction businesses can secure the financial rewards they deserve, and contribute to the future of sustainable construction in the UK.