There has been much publicity within the construction industry regarding the low level of claims for R&D Tax Credits from this sector.
What is R&D in the construction industry?
R&D is about seeking technological advances, which involve overcoming obstacles and resolving uncertainty. This could be applicable to construction or engineering projects, but there is no type or version of R&D in construction. R&D in the construction industry could relate to the innovative use of materials or overcoming problems on site.
Often on construction sites there are unique circumstances in which only a bespoke solution will meet stringent performance standards or legislative requirements.
Examples of qualifying R&D in the construction industry
- Creating, or trialling, new materials for use in construction or engineering projects, to consider unique conditions.
- Identification of technological improvements in construction processes or to the products and software used.
- Adapting equipment or processes to meeting new regulatory requirements Including, innovative scaffolding, safe working processes and automation, fire, health & safety, sound and thermal.
- Development or adaptation of tools, equipment and / or materials to improve efficiency, or the adaptation of construction techniques to consider environmental or land conditions.
- The design and development of new mechanical and electrical systems into buildings, considering, Modern Methods of Construction (MMC) and Building Information modelling (BIM).
- Development of environmentally friendly / green methods and processes, or sustainable technology.
- Modifying existing components and fittings into projects.
R&D happens everywhere
- New Builds – R&D can range from improving performance through innovative methods, the development of unique solutions to overcome technical challenges or the identification and utilisation of novel materials to yield building performance improvements.
- Renovation – This includes work on heritage buildings which requires unique solutions to maintain and restore original structures, the integration of modern services and techniques into existing legacy infrastructure, or the development of bespoke strengthening solutions for legacy buildings being redeveloped.
- Commercial Property – Including the installation of specialist HVAC systems which consider unique building constraints, or the development of novel sound or thermal reduction techniques.
Gateley Capitus will happily provide a free consultation to discuss your activities over the past 2 years and future plans, to see if you could qualify for this important tax incentive. If you are already claiming, they will be able to assess your claims and see how you could benefit from their experience and expertise in this area.