HMRC’s annual report for research and development (R&D) tax credit claims for the year 19/20 found the construction industry claimed back £400m, with 6,015 claims submitted.
Construction R&D claims have risen from the previous year which is consistent with the trend which has occurred over the last few years.
In fact, since the 14/15 financial year when the cash tax benefit of R&D claims in construction was approx. £35 million, the value of construction claims has risen by more than 1,000%.
A total of 85,900 claims throughout all industries were made overall up until 31 March 2021. This figure will continue to rise as the 19/20 claims window remains open until March 2022.
With regards to other sectors in the report, taking top spot with number of claims was the manufacturing industry that made up 22% of claims. The only other industry to match this number of claims was the Information and Communications sector, also making up 22%, closely followed by Scientific and Technical at 19%.
Leslie Maloney, tax specialist at R&D tax specialists Access2Funding, said: “I personally believe this report shows opportunity for real growth for innovative businesses, particularly in those high growth sectors and a shift towards the new economy. The more traditional sectors like Manufacturing and Construction have been claiming R&D for many years and we expect this to continue for many years to come.”
The average claim value across the UK is sitting at approximately £57,000.
R&D tax specialist Access2Funding works with clients across all sectors to identify and maximise HMRC R&D tax credit claims.
Access2Funding is the fastest growing R&D specialist in the UK. It has so far claimed back over £44m of R&D for businesses and has offices across the country, from the Scottish Highlands across to Northern Ireland and down to Kent.