Some may have read the recent comments by BOE Chief Economist Andy Haldane in an article for the Daily Mail. He predicts the UK’s vaccination successes will soon develop into a dramatic spending spree as we emerge from the grind of Covid lockdowns. He said:
“A decisive corner is about to be turned for the economy too, with enormous amounts of pent-up financial energy waiting to be released, like a coiled spring.”
That sounds encouraging. It’s also a clear call to arms for businesses to start planning for the recovery.
One vital area for post-Brexit UK will be Research and Development (R&D). Innovation is an area I’ve touched on before, in less stressful times admittedly. But now it’s more important than ever if we are to bounce back quickly and take advantage of opportunities as they arise.
And the keystone activities that’ll help our economy prosper will be infrastructure projects in the SME construction sector. Happily, R&D tax credits are relevant to the construction supply chain, so let’s have a quick look at what’s on offer.
A Quick Reminder
R&D tax credits have been available in the UK since 2000. It’s a progressive scheme that allows smaller companies to claim tax relief on their R&D activities.
The scheme aims to encourage innovation in UK businesses. In effect, it’s Government help to develop the products and services that will keep our economy growing.
But the shocking fact is this benefit is woefully underused, especially amongst SMEs. For example, data shows that only 3% of all claims come from the construction sector.
Again, it’s the ongoing issue of firms not knowing that their activities can and do qualify for R&D tax credits.
The Construction Sector
The construction industry is often used as a bellwether of economic health. A forest of cranes busily spinning above UK city centres usually means things are going well. Also, often hidden, in this activity is a significant chunk of cash spent on progressive areas like:
- Creating new building methodologies
- The preparatory work involved in designing new cutting-edge buildings
- Developing innovative construction materials
- Process improvements to speed the build
- New technology to make the work or living spaces ever more functional
- Software to ensure that buildings meet ever-demanding environmental and safety regulations.
- Solving all sorts of technical and practical problems
With skilled eyes looking at these activities, we can find many areas where potential R&D tax benefits are available and ready to be claimed.
‘Build Back Better’
Never has a political slogan been more apt for such a critical sector to the UK economy. It seems right then that SME construction businesses should benefit from R&D Tax Credits to help them thrive in the future.
The fact that so few are, is something we need to change.
All that’s required is a little expert help to shine a light on the many areas where claims for R&D tax credits will bring a welcome boost to a construction firm’s bottom-line performance.
Help Is On Hand
Do you have a potential for an R&D Tax Credit claim for your construction business? If so, call my team today on 0161 511 2153 or email me at adam@meetenso.co.uk. Let’s talk about how you can get the R&D tax credits your vital economic contribution deserves.