Are research and development tax credits available to the construction industry?

Whilst many professionals involved in the construction industry have heard of Research and Development tax relief, there is often a misconception that it is not applicable to this sector.

When it comes to R&D tax relief, it is something you should presume your business is eligible for, rather than ineligible.  The presumption of ineligibility is why so few businesses are still yet to claim R&D tax credits missing out on cash waiting to be claimed.

Figures released by HMRC last year showed that out of 20,830 R&D claims across all sectors, construction claims amounted to only 480 of them.

Is it the case then that UK construction and engineering is failing to invest money in innovation?  This would seem unlikely given that our construction and engineering firms are considered amongst the best in the world and also taking into account the constant struggle and uncertainty experienced within the sector as companies undertake more ambitious and challenging projects.

It seems that the common misconceptions which have been overcome in other industries are still lurking in the construction sector.

R&D tax credits are a great source of cash flow.  Most firms don’t think they are eligible when in fact they are innovating and meet the criteria set out by HMRC.

That’s why it’s crucial to contact your CHW Accounting Bolton advisor to check whether or not you meet HMRC’s criteria because chances are that you are.

Whilst the focus in this article is on the construction industry the same issues apply across all sectors.  It is better to be told you aren’t eligible than simply presume – most accountants and tax advisers will in fact review your business free of charge.

For more advice on research and development tax credits, contact us at CHW Accounting Bolton.


This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.

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