R&D Tax Credits Could Give You A Welcome New Year Boost!
From developing new materials to overcoming logistical challenges, research and development (R&D) is happening within construction businesses across the UK on a daily basis.
Yet when it comes to claiming R&D tax credits for that innovation, construction firms are missing out on a valuable tax break that could reduce their corporation tax liability or result in cash back from HMRC.
R&D tax credits were designed as a tax incentive to promote innovation in the UK. The incentive is being used as a way to increase companies’ investment in R&D and also to strengthen UK industry in the run up to Brexit. In last year’s autumn budget, Philip Hammond announced a £2bn increase in spending on the initiative by 2020/21.
For the construction industry, it’s estimated that eligible R&D tax credits could be worth over £1 billion annually but in truth it could be far greater than that, as estimates have been made assuming that innovation accounts for just 1% of the sector’s turnover.
Momentum Group, a tax credit advisory firm carried out an analysis on R&D tax credits and. Managing director Tom Verner had this to say:
“While HMRC statistics show many industries in the UK are wakening up to the benefits of R&D tax credits, the potential is far greater. In our experience, there are still so many construction businesses that are either not aware of R&D tax credits, incorrectly think they do not qualify or feel they lack the necessary experience to submit a claim. In fact, many companies are not claiming their full legitimate entitlement. It is vital that the construction industry recognises the potential of this very accessible UK government incentive... Given the potential, we find it startling that more companies aren’t claiming.”
With 80% of construction companies not taking advantage of this tax relief, it's imperative that you make yourself one of the 20% who DO take advantage, providing a vital boost for your business.
We Make R&D Tax Credits Easy To Claim
Companies in the past have attempted to claim, only to be met with a long, complicated process that resulted in little reward at the end of it, often with unexpected costs. This is enough to deter many businesses from trying again: most are keen to get started with their next project; they don’t want to waste time writing a detailed report for HMRC, only to get nothing out of it.
R&D activity and expenditure is difficult to spot, even for an accountant, and claims can underestimate both the R&D that has been carried out and the expenditure attached to it. This is why specialist assistance is an absolute must. When you get specialist assistance, R&D claims can be hugely beneficial and the process becomes much simpler.
An R&D tax credit specialist will work alongside a business and its accountant, identifying eligible R&D to maximise the claim’s potential.
Luckily this is an area we can help you with. Get in touch with us today and we will connect you with a specialist who will simplify the process, saving you time and making sure you get your maximum entitlement. Call us today on 07710 466166.