R&D and Construction, the hidden tax reliefs that are being missed

The construction industry has historically under-claimed when it comes to R&D, part of the reason is that many people in the construction industry are unaware that they can claim business tax credits. It could be as much as £70k in R&D tax credit savings and according to HMRC, it’s definitely worth knowing about.

How does the UK’s second-largest sector not know more about R&D and what they can claim? Well according to a review by Mark Farmer, he indicates that the construction industry either believes they do very little in terms of innovating, construction companies are simply not interested or aware. 

R&D tax credits are available for construction companies

Sarah Ashford, the founder of Blue Garnet and co-founder of The Property and Construction Partnership, disagrees with these findings.
The problem here is not the industry or lack of innovation, it comes down to culture. It has a huge role to play in holding businesses back from claiming. The key requirement for R&D tax credits is technology, and there is uncertainly within the construction sector as to whether this applies to them. The other misconception is that R&D is only suited to people in white lab coats, who work solely within research and development.

These are some of the factors that contribute to the lack of construction-related firms applying, and we at Blue Garnet are here to de-myth those concerns.

The truth is that R&D can be applied to almost any business when they have completed something innovative or found solutions to problems. We know that technological advances in the construction industry previously may have not been recognised as worthy of tax relief, but this is simply untrue. For instance, process or production improvements, quality control and looking at the use of green and/or sustainable materials when building. It is much broader than many businesses realise. 

We can find hidden business tax credits

R&D within the construction industry is often hidden, by that we mean it isn’t as easy to set aside a R&D budget like a pharmaceutical or technology company. Blue Garnet are here to help those within the construction industry, we are experts in finding those hidden claims.

If there is a good chance of making a claim then we can help guide you through the process and give you realistic feedback as to whether or not you should continue. You may not even consider some of the work you do as innovative, but you might be surprised to hear we often find areas that do qualify a business for R&D tax relief.

The construction industry could benefit greatly from these hidden opportunities, we’ll help you to identify the next steps, to arrange your no-obligation free consultation, get in contact with one of our advisors below