Recent HMRC statistics show the UK construction industry claimed a total of £80m in R&D Tax Credits
The latest annual statistics from HMRC depicts a slight decrease in companies from all regions of the UK claiming R&D Tax Credits, an initiative which was set up to encourage innovation.
Only 3% of all claims submitted were made by the construction industry, highlighting that the sector hasn’t tapped into the potential of the initiative.
Figures show the average claim received by construction companies was £58,000, sitting slightly below the £85,000 average overall payment per claim across the industries surveyed.
Tom Verner, Group Managing Director, Momentum R&D commented: “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.
“At Momentum, we helped a record number of companies with R&D Tax Credit claims in 2017. These are often highly innovative companies, who can reinvest these savings into technological innovation that bolsters their businesses, exports, employment and the local economy in the wake of Brexit.”
Momentum is calling on more construction businesses to act now on R&D Tax Credits, highlighting that the regional statistics could be much higher given the increasing investment in export in the UK.
Verner added: “It is vital that the construction industry recognises the potential of this very accessible UK government incentive. While seeking in-depth advice is vital, with an increasing number of accountancy practices availing of our R&D expertise, we assist businesses every day that have benefitted from tens of thousands and hundreds of thousands of pounds.
“Given the potential, we find it startling that more companies aren’t claiming, and we have made it our mission to highlight the incentive particularly on occasions like today when regional results show improvement from companies to claim their optimum benefit.”
Founded in 2009, Momentum is one of the longest established R&D advisory companies in the UK. It is also the only R&D tax practice that focuses on providing advice on long-term R&D strategies, offering a complimentary annual review to its client enabling them to assess current and forward-plan future research and development projects.