Building a better future for the construction sector
A more exciting, productive future awaits. Construction: it’s time to get the credit you deserve.
R&D in construction: funding innovation
Imagine a construction industry with reliable cash flow from an established and valuable source of funding. Fully-costed, sustainable products as standard. Supply-chain complexity removed. Cheaper, more efficient materials delivered on time, every time, and more technicians with the skills you need. A return to full productivity.
Construction can overcome its challenges when research and development is fully rewarded with R&D tax relief. For those firms seeking the UK’s premier R&D tax credit consultancy, ForrestBrown is the natural choice.
Nobody is more adept at maximising your claim and helping you to receive the benefits you deserve.
Peace of mind
A robust methodology that is tailored to your business, including even the most complex of projects. Built-in quality assurance maximises your R&D tax credit claim and protects you from risk. It stands up to HMRC scrutiny.
HMRC insight
As the largest specialist R&D tax credit consultancy in the UK, you benefit from our policy-level insight and good working relationship with HMRC. We have two former HMRC inspectors in our ranks and a seat on HMRC’s R&D Consultative Committee.
Unrivalled specialist technical firepower
Our team includes chartered tax advisers, accountants, lawyers and industry specialists. We save you time because you have the right people working on the right part of your claim.
Speak to our education and awareness team
If you have questions about your eligibility for R&D tax credits, or how we can add value to your existing claim, get in touch with our team on 0117 926 9022 or at hello@forrestbrown.co.uk
Upcoming events
Wednesday 24 April; 12.30 - 13.30
Funding Construction: Increase your cashflow in 2019
This webinar is archived. Provide your email for access to the webinar recording:
Tuesday 19 March; 17.00-19.00
Bristol: Changing the way we build
Avon Gorge by Hotel du Vin, Sion Hill, Clifton, Bristol BS8 4LD
This event is archived
Monday 11 March; 17.00-19.00
London: Changing the way we build
Clarkslegal, 12 Henrietta Street, Covent Garden WC2E 8LH
This event is archived
Qualifying R&D in the construction industry
Construction is full of challenges that require inventive solutions. R&D activities usually relate to the innovative use of materials or overcoming problems on site. Often there are unique circumstances in which only a bespoke solution will meet stringent performance standards.
R&D tax credits reward this innovation. The types of construction activities that may generally qualify include work with new or improved materials, processes and techniques.
There’s potential for an R&D tax credit claim wherever business is taking a risk and attempting something challenging.
New systems support just-in-time logistics; the salaries of technicians, and even a percentage of subcontracted work, can be included too. This should all add up to a significant claim for your firm. That’s money to invest in accelerating R&D further, hiring new staff and ultimately growing.
What counts as R&D in the construction industry?
You could be:
- Creating, or experimenting with, new materials.
- Integrating new or improved technology into buildings.
- Coming up with new ways to implement energy saving techniques.
- Integrating mechanical and electrical systems into buildings.
- Solving technical problems that arise during or after construction.
- Modifying existing components and fittings into bespoke projects.
- Meeting new regulatory requirements e.g. fire, health & safety, sound and thermal.
- Developing new or improved equipment used in construction.
- Redesigning to improve performance, reliability, quality, safety and life-cycle costs.
- Developing Buildings Information Management (BIM) capabilities.
- Performing offsite fabrication or offsite construction.
Construction R&D by sector
Qualifying R&D can be found across a diverse range of construction businesses. From architecture firms to civil engineers, HVAC to construction manufacturers, there is a hotbed of qualifying construction R&D. We look at some firms that we’ve helped:
Myths about R&D tax credits for construction companies
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Speak to our award-winning team
ForrestBrown have the specialist tax, sector and legal expertise to deliver value whatever your circumstances.
Get in touchConstruction innovation — the need for R&D tax credits
Like other sectors, construction has productivity issues, the underlying causes of which are complex. This was addressed by the government’s recent Construction sector deal. Raw material costs are high, uncertainty is all around and investor confidence is low. Bad debts are too common and skilled technicians too expensive.
Government funding for construction
As an established government incentive, R&D tax credits can be used strategically to demonstrate an early return on projects and influence commercial decisions. They allow firms to invest in their businesses however they choose, whether that’s accelerating R&D, hiring new technicians or taking a leap into BIM. That offers a pathway to improved STEM skills and a key to resolving productivity issues.
Underclaimed incentive
Despite the clear benefits of R&D tax credits, just 3% of all claims made by UK businesses come from the construction sector. There are just over 900,000 construction businesses in the UK, yet only 1,610 construction claims were made in 2016-17 (0.2%). In our experience, this is because the construction industry as a whole is not making use of this valuable source of funding.
Untapped value
In 2016-17, the average SME claim was worth £53,876, and RDEC, £272,881. Yet construction claims are worth considerably less – £48,246 on average for SME and just £166,666 for RDEC. One reason for this might be that some firms are missing out on untapped potential in their claim. Having a specialist on your side ensures your claim includes the full extent of your qualifying activities and costs.
Making a construction R&D claim
The ForrestBrown team will create a robust and fully-maximised construction R&D tax credit claim in four to six weeks – it then goes to HMRC.
We make sure that R&D tax credits deliver maximum value to your firm – from your first claim and well into the future. We achieve this by implementing record-keeping that works with your existing systems. This helps capture all qualifying expenditure going forward, ensuring future claims are more robust.
Gather information
Identify qualifying activities
Create a bespoke methodology
Submit your claim
Deliver your benefit
Meet the team
We will assemble the best team for your business by handpicking individuals with the right specialisms. These include chartered tax advisers or accountants, construction sector specialists, two former HMRC inspectors, lawyers and members of our quality assurance and client relations teams. The right people working on the right part of your claim. The following are just a few of the people you can expect to meet.
Alex Price
CTA, Director
Alex Price
“I’m passionate about encouraging the next generation of talent into technical (STEM) careers and have witnessed how construction companies can use R&D tax incentives to achieve this.”
Adam Kotas
CTA, Director
Adam Kotas
“When I talk to clients, it’s clear that the construction sector is where some of the most fascinating innovation happens.”
Jenny Tragner
CA and HMRC R&D Consultative Committee seat holder
Jenny Tragner
“Construction is so important for the economy and the country. I know how transformative R&D tax credits can be, so I want to see the construction sector fully embrace the incentive and benefit from the funding it deserves.”
Tax Manager
“I’ve got a Big Four accounting background, so I enjoy helping construction firms find cost efficiencies from their R&D projects to help with rising materials costs.”
Phil Smith
Senior Tax Manager
Phil Smith
“I like working with construction clients over a number of accounting periods to help optimise their R&D tax credit. We’re best placed to do this when we become trusted advisers and establish a genuine relationship with our clients. It’s very rewarding for both of us.”
Andy Royce
Tax Consultant
Andy Royce
“I love it when a construction customer claims for the first time. I can see what a difference it makes to their business and its cashflow.”
Max Brough
Tax Associate
Max Brough
“I’m a bit of an eco-warrior so I find it uplifting when I see construction customers claiming R&D for sustainability projects.”
Malcolm Henderson
Senior Tax Specialist & Former HMRC Inspector
Malcolm Henderson
“Rising material costs, environmental pressures, finite land resource, and a sector that’s a huge UK employer makes construction fascinating to me. I’m excited by the impact that R&D tax credits have on these challenges. We help to grow our clients, which creates jobs and boosts the UK economy.”
Peter Beavis
PhD, CSci, Senior Sector Specialist
Peter Beavis
“Construction leaders frequently look to material science to achieve ever-more challenging improvements in aesthetic, environmental or other beneficial properties. It’s exciting to see the sector increasing knowledge and capability and the first examples of what the built environment will look like in years to come.”
Are you a large company?
If you’re a large construction firm, we will tailor our RDEC service to your company’s needs, drawing on our specialist technical firepower to deliver maximum value.
Find out about our large company services
Our enquiry support service
HMRC are focusing on the quality of R&D tax credit claims. If you’re facing an HMRC enquiry, we can help.
Read moreWhy choose ForrestBrown?
When it comes to R&D tax credit claims, ForrestBrown is the premier provider in the UK. We were named ‘best independent consultancy firm’ at the Taxation Awards 2018 in recognition of our technical excellence and service innovation.
We bring together a specialist team that gives you access to considerable technical firepower. We use a rigorous, continually-improving process to deliver a claim that is maximised and stands up to HMRC scrutiny.
To find out more about claiming R&D tax credit with ForrestBrown, contact our expert team today.
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