Firms due £50m Covid dividend in R&D tax rebates

Aaron Morby 2 years ago
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Contractors are in line for a £50m payout in tax rebates after reworking sites to keep them operational during the pandemic.

Firms that redesigned sites and introduced new safety measures and processes to ensure safe working are eligible to recoup expenditure through the Government R&D tax credits system.

This was set up by Government to reward companies for innovative products, processes or services in their sector.

Tim Fitch, director at R&D claims consultant Invennt, said that any Tier 1 contractor or subcontractor would be eligible to make an enhanced claim associated with overcoming the Covid impact on construction.

He estimates that the total benefit due to construction companies in 2020/21 for Covid related activity alone could reach £50m.

But he warned that the industry could miss out on the huge Covid rebate because of lack of awareness.

Fitch said: “People think that ‘real R&D’ is carried out in laboratories by people in white coats.

“But whether you’re overcoming technical challenges by creating new processes or developing better, safer working environments you’re carrying our R&D.

“There was a tremendous response to keep sites and the economy working and much of that work to overcome the extra hazards of Covid are valid to claim for.”

Fitch also revealed many architects and M&E consultants are now discussing claims for reworking planned projects and existing buildings to make then Covid safe.

“Currently there is a lot of work taking place to make buildings virus safe and rethinking how offices will be used.”

“Its anything from converting office ground floors for bike storage in response to a modal transport shift to setting aside dedicated first-floor meeting space to limit visitor movement around buildings.”

“Much of this will be eligible for R&D tax credits,” added Fitch.

 

 

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