Due to the increasing threat of the climate crisis, the UK government has introduced a net-zero target by the year 2050. This means that there is a balance between producing and removing greenhouse gas emissions from the atmosphere. To achieve this, the government has set out a number of initiatives in many sectors of the economy that focus on improving efficiency, increasing the use of sustainable materials, and reducing the reliance on unrenewable energy sources like fossil fuels. The transportation, energy, and construction sectors are all leading the way in the green revolution with huge strides being made in innovating eco-friendly alternatives to what is currently on the market. There has been a number of legislative amendments particularly in the construction industry that ensure buildings are increasingly energy-efficient, with a large amount of investment being directed into finding sustainable materials.
The government’s new construction regulations focus on embodied carbon, modern methods of construction, the performance gap in new builds, and businesses communicating more eco-friendly ways for consumers to use products and occupy spaces. The plans outline that over the coming years, homes should produce 31% less co2 emissions compared to current standards with specific rulings regarding the minimum performance of the U- values of products, fittings, and components. There are also guidelines concerning the thermal conductivity of frame materials amongst others.
To ensure businesses operate within the new criteria, a substantial amount of innovation and R&D is being carried out in the construction and joinery industries. The price of innovation can be high which is why the government is offering incentives to encourage R&D investment. One financial incentive that has been popular within the construction industry is R&D tax credits– a government-funded scheme that seeks to reward UK companies for spending time on innovation. According to HMRC’s annual R&D statistics, the construction sector made almost 4000 claims during 2018-19 and was awarded almost £400 million from HMRC. Whilst these figures reflect how construction businesses are being rewarded for their innovative advancements, there remain thousands of eligible companies that are not aware of the scheme, meaning millions of pounds are left unclaimed each year.
If you have a construction or joinery business that has spent time innovating existing products and processes or has created new ones, you could be eligible for R&D tax credits and a substantial sum from HMRC. Qualifying R&D activities include: trailing new materials, creating prototypes, trial and error, problem-solving, and many more.
Randd uk are R&D tax credit specialists that have been helping clients across the UK successfully use the incentive since 2008. We have a 100% success rate and an average first claim of £50k. Since starting we have submitted over 3000 claims to HMRC, and have won back over £150 million for our clients.
Randd uk recently submitted a successful claim to HMRC worth £64.7k on behalf of a bespoke joinery manufacturer, making their total claim to date £228k. The client works with different materials and invests heavily in new technology and machinery to automate processes so they can compete with bigger competitors. The company thrives in the highly competitive joinery sector in which clients are constantly searching for quality, synergies, and cost savings. The largest challenge in terms of innovation is the need to constantly upgrade the company’s machinery that keeps it in front of competitors. Their R&D projects have involved trialing new renewable materials and problem-solving by responding to customers’ specifications.
If you would like to inquire about your company’s eligibility for R&D tax credits, contact our office today and one of our experts can discern whether or not you qualify in just a 30-minute phone call.