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

Aaron Morby 5 years ago
Share

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.

 

 

Latest news

Ardmore Construction Group collapses into administration

Safety liability fears choke new work pipeline as London contractor shuts sites and calls in administrators
6 hours ago

Gatwick picks 11 firms to drive £2bn airport upgrade

Mace, Morgan Sindall and Costain land Gatwick framework spots
12 hours ago

Allied London unveils landmark Castlefield tower plan

46-storey residential block would complete regeneration of long-vacant city centre site
11 hours ago

Derby backs 1,150-home Derbion masterplan

Eagle Market and Bradshaw Way sites form part of wider city centre regeneration plans
12 hours ago

Lorne Stewart returns to profit after two years in the red

M&E specialist posts £1.6m pre-tax profit after operational reset
12 hours ago

CCTV captures scaffolder’s skylight roof plunge

Two firms fined £79,300 after worker suffers broken arm, leg and head lacerations
1 day ago

Subcontractors wanted for jobs across Yorkshire

Constructionline latest event in Leeds: Register now
11 hours ago

McAlpine/Vinci £1.3bn Crewe hospital gets green light

Leighton Hospital replacement moves towards delivery phase
1 day ago

Sellafield site pay dispute sparks new week-long strike

Nearly 2,000 construction workers to walk out after talks over nuclear site allowance stall
1 day ago

Plan unveiled for new London high-rise hospital in Paddington

£2bn St Mary's 30-storey super-hospital set to reshape London skyline
2 days ago

Portsmouth lines up £120m tower block safety blitz

Framework bidders need Gateway 2 experience
1 day ago

Quartet of care home wins for Kori

Work to start this summer on schemes worth £47m
1 day ago

Motorway concrete barrier safety drive hits the hard shoulder

National Highways replaces just 53km of ageing steel with concrete in five years
1 day ago

Thieves steal 6,000 litres of petrol from motorway site

Raid on Galliford Try M5 upgrade job
2 days ago

Duo share £1.2bn coastal beach management framework

Environment Agency 8-year deal covers beach recharge, flood protection and emergency response works
2 days ago

Gleeson warns on profits after major land sale delay

Biggest planned land disposal pushed into next financial year as buyers hesitate
2 days ago

Galliford Try lands £39m East London SEND school build

Green light for main works to build one of the UK's largest specialist schools in Gidea Park
2 days ago

Ceiling specialist Zentia falls into administration

170 jobs lost as manufacturer hit by high energy costs and slower market
2 days ago

Mace bags top spot in the May contracts rankings

Norwich John Innes Centre research complex win secures pole position
2 days ago

Tilbury Douglas reshuffles regional building team

Order book hits £1.6bn as Simon Butler steps up to lead growth plan
3 days ago

Council building workers to strike over pay

More than a 1,000 craftworkers to kick-off action over 3.7% pay offer
3 days ago

Rhatigan’s UK arm powers towards £200m turnover mark

Irish contractors UK business grows seven fold in five years
3 days ago

Glencar appoints former Curo director

Patrick Mays joins as Group Business Development Director
2 days ago

Getjar revenue up a third as Gateway 2 bottlenecks start to ease

Concrete frame specialist expands cut-and-carve and precast operations
3 days ago

Curo Living changes name after construction arm collapse

Residential contractor rebrands as Sorel Living
3 days ago

Brick firms buys fencing company

BRCK Group acquires £40m turnover Jacksons
3 days ago

National Grid delay threatens McAlpine’s £1.25bn steel furnace finish

Substation works to set back commissioning of Port Talbot electric arc furnace by up to a year
3 days ago

£50m rescue loan to keep Manchester’s tallest tower on track

Viability gap bridged as GMCA backs 76-storey Nobu tower project
3 days ago

Kier opens £70m subcontractor hunt on Army barracks rebuild

Groundworks, steelwork and envelope packages head to market for Aldershot job
3 days ago

Knights Brown rides coastal work boom to record profit haul

£136m turnover firm plots further growth as coastal, energy and water work powers up business
6 days ago