30/11/2021
Did you know that the Government is keen to reward companies that are innovating?
This article from sums it up nicely, and it is a little bit encouraging but still has a way to go to claim everything they are entitled to I'm here to help
UK construction companies increase R&D spend by £70m
UK construction companies are increasing their investment in innovation, with research and development (R&D) expenditure rising by £70m, according to figures released by HMRC
Analysis by IronmongeryDirect, has revealed that in the first part of 2018/19, construction firms spent £1.36 billion on qualifying projects. This is already 5.4% more than the whole of 2017/18 (£1.29 billion).
The government’s R&D Tax Credit Scheme, means companies can claim back up to 33p for every pound spent on R&D activity. This includes any project that aims to advance the industry by researching or developing a new process, product or service, or improving an existing one
For such work completed during 2018/19, construction companies have already claimed £235 million of Corporation Tax relief
More companies in the sector are starting to take advantage of the scheme, as the latest data shows.
So far, construction businesses have made 3,340 claims for R&D funding, which is a year-on-year increase of 1.8% (60). The industry now represents 5.7% of all R&D claims in the UK.
The majority of the projects are classed as ‘specialised construction activities’. These account for 66% of the sector’s claims, way ahead of ‘construction of buildings’ 21%
However, the most valuable construction R&D claims are those labelled as . Across the whole industry, the average claim was worth £70,359 – almost 5% higher (£3,286) than the year before (£67,073)
The typical amount of tax relief awarded to Civil engineering is £129,412.
The totals also vary significantly across the UK. The most innovative area is London, with more claims made in the capital than any other part of the nation (455).
But it is where construction represents the greatest percentage of a region’s total R&D claims. More than one in ten (11%) of the country’s qualifying projects fall within the industry.
Despite only making the fourth highest number of claims, construction firms in the are investing the most money in innovation. Its businesses have already registered £145 million of R&D spend for 2018/19 – more than any other area.
The regions which have made the most and least claims for construction R&D funding for 2018/19, so far, are:
1) – 455 claims (£55m)
2) East – 425 (£85m)
3) – 400 (£5m)
4) North West – 375 (£145m)
5) – 295 (£10m)
6) – 255 (£85m)
7) – 250 (£10m)
8) Midlands – 215 (£10m)
9) Northern Ireland – 180 (
