New analysis of HM Revenue & Customs (HMRC) latest R&D tax credit data shows that the UK’s construction sector accounted for just under six per cent of the UK’s R&D tax credit claims.
With many innovations coming out of this important industry, experts feel that there could be greater potential for some companies to make a claim.
In fact, the data shows that for those that did make a claim from the sector as a whole, the average value of a claim was just over £70,000.
The reason for so few claims in the sector may be down to ongoing misconceptions about R&D tax credits only suiting the most high-tech industries, however, this couldn’t be further from the truth, with funding provided to almost every sector in the country.
HMRC defines innovation eligible for an R&D tax credit claim as any project that overcomes an uncertainty – something that could not easily be worked out by someone who is a professional in the field – and delivers a new scientific or technological advancement.
Even if the innovation ultimately fails, the work conducted and expenditure incurred could still be eligible for tax savings under the scheme.
Within claims for the construction sector, a business could claim against staff costs, subcontractors, externally provided work, software and consumables like heat, light and power.
If you operate in the construction sector or have clients that do, who may benefit from making a claim on R&D projects, which could include new construction techniques, materials or advancement in green technology, then our automated claims software could help.
Using the immense power of the cloud, Made.Simplr can work alongside existing online accounting platforms like Xero to make the claims process simpler, quicker and more cost-effective.
To find out how our systems can assist you, please arrange a demo with our team today by clicking here.