Construction R&D Tax Credits

Your construction company may be eligible for a tax credit or cash rebate of up to 33% of your development expenses through the Research and Development Tax Credit program.



Construction projects often face numerous complications that are considered routine or common, requiring non-standard technical solutions to achieve successful outcomes.

The UK government is encouraging the construction industry to be more cost-effective, efficient, and environmentally conscious, despite the complexity of construction projects, which often involve unexpected issues, delays, budget constraints, and material shortages. While we tend to focus on the aesthetic aspects or hidden technical advancements of construction, R&D actually arises from solving these challenges.

The R&D tax credit scheme aims to reward efforts made towards overcoming these obstacles by reducing a company’s corporation tax liability. Surprisingly, HMRC data shows that less than 5% of claims for R&D tax relief come from the construction industry, despite generating over £118 billion annually.

Our observations suggest that this low participation is due to a lack of knowledge about the scheme and a perception of R&D projects as routine work.


Why Us

  • Construction-oriented: Our founder owns a construction firm, which gives us unique experience in the industry.
  • Significant claim experience: Our largest construction claims to date is worth £112,99,85.
  • Strong client base: 67% of our clients are in the construction sector.
  • Average claim value: The average value of our construction claims is £86070.



What counts as R&D for tax relief purposes?

We suggest evaluating your project against the following three criteria to determine if it meets the requirements for R&D classification in the eyes of HMRC:

  • Is there technological uncertainty? If you took a competent professional in your field and gave them the documentation for your project, would the answer to your problem be readily deducible? If not, then you likely attempted to overcome some sort of scientific or technological uncertainty for your project to qualify.
  • Have you achieved an advancement? The goal of any R&D project should be to take any given technology beyond what’s available in the public domain. So, if you’re doing something that’s never been done before to your knowledge, something that’s been done by other companies before in a way that was their own IP or advancing an existing technology/approach beyond what it was natively capable of, then you could have done exactly that.
  • Does it demand competent professionals? A professional in the relevant field shouldn’t be able to solve uncertainties with ease. A competent professional is one who is anticipated to be familiar with the pertinent scientific and technological principles involved, aware of the current level of knowledge, and has acquired experience and is acknowledged as having a successful track record.


Our R&D Tax Credit Process

Our expert team of sector specialists, construction professionals, accountants, and former HMRC tax inspectors are uniquely equipped to uncover R&D expenditure in construction projects that other advisers may miss.

Our process has been tailored for the construction industry, designed to uncover eligible projects, and compliantly maximise your claim.

EXPLORE: Schedule a free appointment below to determine your eligibility and your company’s total R&D tax position.

CREATE: We’ll create a claim that minimises your exposure to HMRC enquiries, speeds up the process, and undergoes rigorous compliance checks by our in-house team.

OPTIMISE: We’ll help you find additional sources of R&D funding and offer planning assistance for your R&D strategy, considering potential incentives and grants.

REWARD: We’ll help you safely receive the maximum tax credit available, supporting your future growth.


Industries that Have Successfully Claimed R&D Tax Credits in Construction

Given the wide variety of construction projects that may qualify, it’s not surprising that many companies within the construction supply chain are engaged in such work. Here are some examples of the types of companies whose claims we’ve assisted with:

  • Construction contractors
  • Groundworks contractors
  • Earthworks contractors
  • Fit-out contractors.
  • Cladding contractors
  • Civil engineers
  • Structural engineers
  • Building services engineers
  • Designers and architects
  • Steelwork fabricators
  • Refurbishment specialists
  • Enabling works specialists
  • Temporary works specialists
  • Interior designers
  • Demolition contractors

This is just a sample of companies that may be eligible to make claims. If you’re uncertain whether your work qualifies, we’re happy to schedule a free assessment call to help you better understand the potential benefits of filing an R&D tax credit claim.


Qualifying activities for R&D tax credits in construction

Technical Problem Solving:

  • Resolving technical issues that arise from site-specific characteristics.
  • Employing existing technologies in innovative ways
  • Developing a bespoke or improved approach to design in accordance with variable environmental and site conditions
  • Adaptation of methods to comply with regulatory mandates.

Sustainable Construction:

  • Incorporation of sustainable and low-carbon technologies and energy-efficient fittings
  • Carbon footprint reduction of existing processes
  • Modifications to comply with new regulatory standards relating to sustainability, such as those relating to sound, heat, fire, and safety.

Equipment and Process Development:

  • Design and prototyping of temporary works solutions
  • Development of new construction equipment for a project or commercial use
  • Improving an existing methodology or process
  • Integrating new systems with older systems

Site-Specific Concerns:

  • Facade retention works.
  • Resolving site or ecological concerns
  • Foundation construction within poor-quality soil subject to a high-water table
  • Adapting existing structural fixtures.



Eligible R&D Expenditures for a Construction Organisation Expenditures that can be accounted for in your R&D claim as revenue expenditure include:

  • Payroll/staffing expenses for construction engineers, architects, designers, and project managers (gross wages, employers’ NI, and company pension contributions)
  • Subcontracted R&D for the creation of novel construction equipment prototypes and cutting-edge construction software and applications, as well as external consultants for innovative ideas in construction techniques and materials.
  • Consumable materials used in research, such as materials used in prototype creation or testing.
  • Software and software licenses used in R&D, such as building simulation software and CAD programs.
  • Compensation paid to contractors or workers for participating in performance studies or trials.
  • Contributions to independent research institutions, such as universities and engineering departments, for joint research projects.
  • Cloud computing and data storage costs incurred in R&D, starting from April 2023.


What next?

Maximise your innovation with a free consultation from the experts at Bonham & Brook. If you feel that your current claim has not been fully optimized, or if you’re ready to start your first claim, our team can help guide you every step of the way. Schedule your appointment today to ensure you receive the best possible outcome.



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What our clients have to say

It was a pleasure working with the guys at Bonham & Brook, especially considering that, with the wealth of knowledge backed up with the expertise of an ex HMRC officer, we had confidence going ahead with a claim for the first time. After successfully receiving a substantial refund, we would not hesitate doing another claim and, it goes without saying, Bonham & Brook will be our preferred partners going forward. Thank you, again.

Chris Strik

Managing Director

We worked with the team at Bonham & Brook on the R&D claim that we were unaware of. To our surprise they made the whole process seamless and we received our refund from HMRC. We will definitely be using B&B again for our R&D claim to help us grow our business.

Chetan Patel


At first I believed that R&D tax credits were a little too good to be true or that my company would not be applicable. Jenson, Hannad and the team's expertise and experience reassured and guided me through the process. I had to put in approx. 1 - 2 hours work and they did the rest of the application. The first time we worked together they were able to claim for the previous 2 years, so we received a bumper double rebate. This money has helped us grow the business by having the cash to grow the team and increase our marketing budget. My business has grown thanks to their work, so I am eternally grateful.

Ryan James

Managing & Creative Director

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