New statistics from HMRC have revealed that construction companies claimed £90m in research and development (R&D) tax credit relief, but were still one of the lowest sectors in the UK reaping benefits
The UK statistics revealed that there were 1,790 claims across the construction sector, amounting to £90m. Three sectors continue to dominate the majority of R&D tax credit benefits including manufacturing, professional, scientific & technical, and information and communications.
This is an increase in the number of claims the previous year but still only 4% of all claims across the scheme. The most construction claims fell under the category specialised construction activities, followed by construction of buildings and civil engineering.
Given the current challenging economic market due to Covid-19, R&D tax credit specialist firm, the Momentum Group, is urging all construction companies to review the current innovation they are applying throughout their processes, products or services, or simply something they are attempting to make better, to ensure they get what they deserve in terms of R&D tax credit support from government.
In light of the Chancellor’s announcement to support SMEs focusing on research and development, it is expected companies within the construction sector in a position to apply for more R&D tax credit relief immediately.
Daunting economic outlook across the UK
Tom Verner, managing director of Momentum Group, said: “We are facing a daunting economic outlook across the UK and construction companies need to consider all options in order to recover, and R&D tax relief has the potential to help many businesses across NI.
“The monetary value of R&D tax credits to construction companies could run into tens of thousands of pounds, which could benefit cash flow enormously at this time. This time next year, we would hope to see the HMRC statistics revealing more construction companies making successful claims.
“The UK government has clearly identified that innovation is the key to driving economic recovery and we would urge all construction companies to consider their processes and see how R&D tax credits could help.
“The Momentum Group are specialists in this area, having successfully secured over £150m in tax benefits for our clients, and we are happy to be able to offer free claims advice to companies during this challenging time.”