R&D and Construction
A sector built on innovation that only claims 3% of R&D tax credit, despite its position as a pillar of the UK economy and a major employer.
We at Novel are committed to spreading the word on all the amazing R&D activities occuring in the construction community. It’s not business as usual, it’s business worthy of R&D tax credit and we will show you.
Construction sector often misses out on R&D tax relief, despite striving for innovation.
People in the construction sector often don’t realise that they are doing work that fits the Government’s definition of research and development. Instead, they simply call it – problem solving.
However, if we consider all the aspects that fall under construction, from engineering to materials to overcoming conservation issues, we begin to realise the extent of R&D work that actually happens.
This coupled with the fact that typically ROI for construction projects occur long after the project has begun means that when acquired, R&D tax credit can be a very valuable source of funding throughout the project’s lifecycle. Despite this, the construction sector only claims 11% less than the average SME, despite their high operating costs.
There are many reasons for that, but a big one is the belief that they do not partake in any R&D qualifying activity. So let’s clarify.
What is R&D tax credit?
The UK Government’s Research and Development Tax Relief scheme is a way to encourage and reward companies that are investing in innovation.
What qualifies as innovation?
For tax purposes, R&D takes place when you are creating something that will advance the overall knowledge or capability in the field of science and technology. In simple terms, if you are solving industry problems, creating new software, process or materials or anything that could be considered Intellectual Property, you qualify.
In construction, each project comes with its own set of challenges and how you deal with them may potentially save you money, instead of costing you money. New materials, processes, technologies and approaches can all count toward an R&D tax credits claim.
- Are you building with acoustics in mind?
- Do you have a unique energy saving method?
- Have you done a bespoke design with unpredictable obsticles?
- Do you create or improve software to aid or the construction process?
- Are you developing new ‘green’ solutions in your business, such as low-carbon technologies and energy efficient installation?
- Are you developing techniques that help protect building from natural disasters that haven’t been done before?
- Are you working on a new prototype for a material?
- Are you developing new materials?
- Are you using an innovative way and repurposing old materials to solve a problem?
- Did you create site-specific material to fit within the new environment?
- Have you developed or improved technology within the construction sphere?
Overcoming Site Issues
- Was there contamination on site that you dealt with, strategically?
- Did you develop new equipment to help you carry out your construction project?
- Have you created innovative ways to keep your workers safe, such as new protective gear, automation etc?
- Are you developing new ways for water management not done before you
Want to find out whether you can claim 33% of your R&D costs back?
How did a 3D Mapping Company claim R&D tax relief
in the construction market sector?
The 3D Mapping Company’s Mission is to help people like architects, real estate developers and local authorities to organise,
visualise & analyse city data so they can make more informed building decisions.
The Company approached us to help them apply for the Research and Development (R&D) Tax Relief. They had invested heavily in developing innovative technology and needed the help of the R&D specialists at Novel to help them maximise their claim value.
Find out how we helped them claim over £500k worth of tax credit!
There is a reason it's called innovation.
Think your project qualifies but we did not mention it above? Most likely! That’s why it’s called innovation. Get in touch with us and let us see whether you qualify for an R&D tax credit.
Apply for R&D tax Credit with novel
Making Sure Your Business Gets the Funding it Deserves
At Novel, we balance between the attention to detail and number crunching of an accountant, with our child-like disposition to anything new, unusual and innovative. To embody this philosophy we even named our company Novel.
We are on a quest to spread awareness about the R&D tax scheme so SMEs all over the UK can get funding to pursue their research. We know that to some businesses finding out about the R&D tax credit scheme was the difference between going bankrupt and continuing their work and starting to make money. To others it was more psychological, it acted as the earliest sense of recognition for their work. If you are an SME and think that you may qualify for an R&D tax credit, we want to hear from you!