Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
Research and Development (R&D) tax relief is often not thought of by construction companies. However, many of the activities undertaken in both the design and on-site work could qualify as R&D and lead to cash savings.
Working in construction often requires you to be creative and innovative when faced with certain problems, to arrive at a solution that is both effective and cost efficient. All too often businesses undertaking such work do not consider that they may be eligible for R&D tax relief. Consequently the significant benefits go unclaimed.
For small and medium sized businesses (SMEs) this takes the form of an additional tax deduction calculated as 130% of qualifying costs and provides an effective cash tax benefit of 25% for profitable companies. For loss making companies, a cash credit of up to 33.35% is available.
For larger companies (over 500 employees and either €100m turnover or €86m gross balance sheet) the benefit is reduced, but is recognised above the line, i.e. as an increase to operating profit. The effective cash tax benefit is 9.72% of the spend. For loss making companies, the 9.72% is available as a cash credit.
Capital spend on R&D should also not be overlooked as there is an immediate deduction available for capital R&D expenditure.
This gives a significant cash-flow benefit when compared to other allowances where, at best, the relief is given over more than 10 years, and in many cases, not at all.
You can claim relief on costs that have been expensed through the Profit & Loss account and in certain circumstances you can also claim expenditure capitalised as intangible assets). The main areas of costs that can be claimed are:
R&D in construction generally features whenever there is creativity required or problems to be solved, and is found in both the design phase and in work on site. Examples of activities that could qualify include:
R&D in construction generally features whenever there is creativity required or problems to be solved, and is found in both the design phase and in work on site. Examples of activities that could qualify include:
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form
To find out if your project or innovation qualifies under the R&D SME scheme and how it can help your business, get in touch for a Free, No Obligation Evaluation. Start claiming R&D Tax Credits today.
Free EvaluationRSL are one of the most efficient companies we have had the pleasure of dealing with. They take the hard work away and make it easier to understand whats going on. i wish i had come across this company years ago
Good team and knowledgeable. With a combination of engineering and tax expertise the RSL team help us to save on tax by correctly assessing our R&D effort. We are looking forward to work with them in the future as we develop a trusted relationship. Highly recommended.
We received a great Service from RSL, they guided us through the entire process & made what could have been a complex procedure very simple & straight forward. I would highly recomend any business owner/FD to get in touch with them!
The whole process with RSL was incredibly straightforward and Rob and the team were able to guide me through the whole process at ease.
RSL were able to maximise our R&D claim which has helped our business massively. The first company we spoke to about R & D didn’t inspire us with much confidence but the RSL team were excellent and their process was straightforward and open. We have no hesitation in using their service and would recommend anyone else to do so.
Working with RSL was a lot easier than I thought it would be. When we first spoke to them we were apprehensive that there would be a lot of work on our part, but the RSL team took all the pressure off and got us a refund of £42,000 which has massively helped our cashflow and helped us to tender for bigger contracts. We would definitely recommend them to anyone else.
Research and Development (R&D) tax relief is often not thought of by construction companies. However, many of the activities undertaken in both the design and on-site work could qualify as R&D and lead to cash savings.
Working in construction often requires you to be creative and innovative when faced with certain problems, to arrive at a solution that is both effective and cost efficient. All too often businesses undertaking such work do not consider that they may be eligible for R&D tax relief. Consequently the significant benefits go unclaimed.
For small and medium sized businesses (SMEs) this takes the form of an additional tax deduction calculated as 130% of qualifying costs and provides an effective cash tax benefit of 25% for profitable companies. For loss making companies, a cash credit of up to 33.35% is available.
For larger companies (over 500 employees and either €100m turnover or €86m gross balance sheet) the benefit is reduced, but is recognised above the line, i.e. as an increase to operating profit. The effective cash tax benefit is 9.72% of the spend. For loss making companies, the 9.72% is available as a cash credit.
Capital spend on R&D should also not be overlooked as there is an immediate deduction available for capital R&D expenditure.
This gives a significant cash-flow benefit when compared to other allowances where, at best, the relief is given over more than 10 years, and in many cases, not at all.