R&D Tax Credits For The Construction Sector
Get the sector experience you need to make a successful R&D tax relief claim
QLC helps construction companies accelerate their R&D claims with our streamlined portal and expert team.
Our construction experience
With many years of experience helping construction companies take advantage of R&D tax incentives, QLC understands the unique challenges and opportunities in your industry. We've helped many construction businesses claim millions in R&D tax credits. Let QLC help you.
Find out more in our construction sector success stories below:
Success stories
What Our Clients Say About Us
"I am really impressed with the efficiency of your work, and the results you got for our company. A very friendly, committed and obviously hardworking team. You made the whole process very easy."
Will Tompkins (Director)
Vintage and Classic Cars
"QLC successfully claimed credits for the past 2 financial years, this year was even better. They managed the application and claimed the R&D credit prior to our annual tax bill, making the whole process quicker, easier and more efficient than last year."
Andrew Forbes (Director)
Architecture
"A massive thanks to all your team, obviously with the current situation, this money couldn’t have come at a better time."
Ian Cooke (Director)
Engineering
"From our experience we have always found QLC to be efficient and thorough in their tax appraisals, carefully guiding us through the often complex process. They have a very approachable team, all of which have been able to offer excellent advice when needed."
Ben Reed (Director)
Architecture
"They are proactive and efficient in performing their service and I have been impressed by their dynamism."
Chris Wright (Director)
Motorsport Engineering
"Your company did exactly what you said it would do. It took far less time than the other company that we had used in the past. We are extremely pleased with the outcome."
Adrian Smith (Company Sec)
Manufacturing Firm
"I am really impressed with the efficiency of your work, and the results you got for our company. A very friendly, committed and obviously hardworking team. You made the whole process very easy."
Will Tompkins (Director)
Vintage and Classic Cars
"QLC successfully claimed credits for the past 2 financial years, this year was even better. They managed the application and claimed the R&D credit prior to our annual tax bill, making the whole process quicker, easier and more efficient than last year."
Andrew Forbes (Director)
Architecture
"A massive thanks to all your team, obviously with the current situation, this money couldn’t have come at a better time."
Ian Cooke (Director)
Engineering
"From our experience we have always found QLC to be efficient and thorough in their tax appraisals, carefully guiding us through the often complex process. They have a very approachable team, all of which have been able to offer excellent advice when needed."
Ben Reed (Director)
Architecture
"They are proactive and efficient in performing their service and I have been impressed by their dynamism."
Chris Wright (Director)
Motorsport Engineering
"Your company did exactly what you said it would do. It took far less time than the other company that we had used in the past. We are extremely pleased with the outcome."
Adrian Smith (Company Sec)
Manufacturing Firm
How much could you claim?
The average R&D tax claim in the construction sector
For your own quick estimate, you can use our easy-to-use R&D tax calculator:
£ 47 k
Common R&D activities in the construction sector
Below is a comprehensive list of R&D activities in the construction sector that may be eligible for R&D tax relief in the UK.
Innovative building materials and techniques
Developing new materials
Researching and developing new construction materials with improved durability, sustainability, or insulation properties.Material testing and validation
Conducting experiments to test how materials perform under various conditions (e.g., temperature, humidity, load-bearing capacity) to ensure they meet required standards.
Sustainable materials development
Creating eco-friendly materials, such as low-carbon concrete, recycled composites, or bio-based materials, to reduce environmental impact.
Prefabrication and modular construction
Innovating in the design and production of prefabricated or modular building components to improve efficiency and reduce costs.
Fire-resistant materials
Developing materials and coatings to enhance fire resistance, ensuring compliance with stringent safety regulations
Advanced construction techniques
3D printing in construction
Developing or adapting 3D printing technologies for constructing building components or even entire structures.Off-site construction methods
Innovating in off-site construction techniques, where components are manufactured and assembled off-site, improving efficiency and reducing construction time.Automation in construction
Developing automated construction techniques using robotics, drones, or automated machinery for tasks such as bricklaying, surveying, or welding.
Complex structural design
Developing new methods for constructing complex architectural designs that involve significant structural challenges or irregular geometries.
Energy efficiency and sustainability Improvements
Zero-carbon buildings
Developing innovative techniques and materials to create net-zero or low-energy buildings that reduce carbon emissions.
Energy-efficient heating and cooling systems
Designing or developing systems to improve the energy efficiency of HVAC systems in buildings.
Renewable energy integration
Integrating renewable energy sources, such as solar panels or wind turbines, into building designs and systems.
Sustainable construction methods
Developing. construction methods that reduce waste, conserve resources, and minimise the environmental impact of building projects.
Civil engineering and infrastructure development
Innovative foundation techniques
Developing new methods for laying foundations, especially in difficult terrains or for large-scale infrastructure projects (e.g., tunnelling, bridge construction).
Geotechnical engineering
Researching innovative methods for soil stabilisation, excavation, or groundwater management in complex construction environments.
Flood prevention and water management systems
Developing new techniques to manage water flow and prevent flooding, especially in areas prone to natural disasters or climate change effects.
Smart roads and highways
Innovating in road construction techniques, such as using sensors, advanced materials, or energy-harvesting technologies for smart infrastructure.
Tunnelling and underground construction
Researching and developing advanced tunnelling techniques, such as using TBMs (tunnel boring machines) with enhanced capabilities for challenging ground conditions.
Health and safety innovations
Construction site safety systems
Developing new health and safety systems, such as automated monitoring tools, wearable technology, or AI-based systems to prevent accidents on site.
Dust and noise reduction methods
Researching and developing techniques to reduce dust, noise, and other hazardous emissions during construction.
Structural integrity and testing
Advanced structural analysis
Conducting R&D to develop new methods of structural analysis and testing, such as using AI for predictive maintenance or structural health monitoring.
Seismic and wind resistance
Developing techniques or materials to improve a building’s resistance to seismic activity, strong winds, or other natural forces.
Load-bearing innovations
Innovating in load-bearing construction methods, including new ways to distribute weight in multi-story buildings or bridges.
Non-destructive testing (NDT)
Developing or improving NDT methods to assess the integrity of structures without causing damage.
Building information modelling (BIM) and digital twin technologies
Advanced BIM development
Researching new ways to enhance BIM software, making it more efficient and better able to handle complex construction projects.
Digital twins for construction
Developing digital twin technology to create virtual models of buildings or infrastructure projects, allowing for real-time monitoring and predictive maintenance.
Automation in design
Implementing machine learning or AI into BIM to automate the design of building systems or create optimised construction workflows.
Smart buildings and IoT integration
Smart building systems
Innovating in building control systems (e.g., lighting, HVAC, security) that can be remotely managed or adapt to environmental conditions using IoT sensors.
Energy management systems
Developing systems that monitor and optimise energy use in real-time using advanced software or sensor networks.
Automated maintenance systems
Researching smart maintenance systems that use sensors to predict failures or optimise building maintenance schedules.
Innovations in refurbishment and retrofitting
Retrofitting for energy efficiency
Developing new techniques to retrofit old buildings with modern, energy-efficient technologies (e.g., better insulation, advanced HVAC systems).
Restoration of historical buildings
Researching ways to restore or retrofit heritage buildings while preserving their original architectural integrity.
Modular retrofitting solutions
Developing modular solutions for quickly and efficiently upgrading older buildings, such as prefabricated energy-efficient panels.
Waste reduction and recycling in construction
Innovative waste management systems
Developing new methods to reduce, recycle, or reuse construction waste, such as converting waste into building materials.
Circular economy initiatives
Innovating in construction practices that focus on reusing materials from demolition or deconstruction projects.
On-site recycling processes
Developing on-site processes for recycling or reusing construction materials to minimise waste and reduce transportation costs.
Innovative building facade design
Dynamic facades
Developing facade systems that can adapt to environmental conditions (e.g., sun, wind) to optimise building performance and energy use.
Self-cleaning materials
Innovating with facade materials that are self-cleaning or resistant to environmental degradation, reducing the need for maintenance.
Green building facades
Developing facades that incorporate vegetation or other natural elements to improve air quality, reduce heat, and enhance aesthetics.
Waterproofing and weatherproofing innovations
Advanced waterproofing techniques
Researching methods to improve the waterproofing of foundations, walls, and roofs, especially for buildings in flood-prone areas.
Weather-resistant materials
Developing materials that can withstand extreme weather conditions, such as high winds, heavy rainfall, or freezing temperatures.
Innovations in temporary structures and site logistics
Temporary building designs
Developing innovative designs for temporary structures, such as pop-up buildings or temporary event spaces, that are durable, reusable, and easy to assemble.
Site logistics and layout optimisation
Researching ways to optimise construction site layouts to improve material flow, reduce time delays, and enhance safety.
Sustainable urban planning and smart cities
Urban sustainability projects
Developing sustainable urban planning solutions that integrate renewable energy, green spaces, and efficient transport systems into city designs.
Smart city infrastructure
Innovating in the design and construction of smart city infrastructure that uses IoT, big data, and AI to improve urban living and sustainability.
Noise and vibration control
Noise reduction techniques
Researching and developing innovative methods to reduce construction noise, both for workers and the surrounding environment.
Vibration control in buildings
Developing systems or materials that reduce vibrations from machinery or transport systems, improving comfort and structural integrity.
Claiming R&D tax credits can provide your construction business with the funds needed to reinvest in cutting-edge technology.
Why choose QLC?
QLC and our portal help businesses like yours claim R&D tax credits and tax relief faster and more successfully than ever.
End-to-end service
Easy-to-use customer portal
Faster payouts than our competitors
See your money in 16 days
Flexible comms
All sectors and sizes
No minimum fee
Stakeholder transparency
Construction R&D tax credit FAQ
Construction businesses often have specific questions when it comes to R&D tax relief, particularly around eligibility, the types of activities that qualify, and how to maximise their claims. Below are the most common questions asked by construction businesses regarding R&D tax credits:
What construction activities qualify for R&D tax relief?
R&D in construction includes activities that address technical challenges and involve innovation, such as developing new building materials, improving construction methods, designing bespoke solutions for unique site conditions, and enhancing sustainability or energy efficiency. Projects that involve overcoming scientific or technological uncertainties often qualify. Check our comprehensive list above and if you have more questions, get in touch.
Can improving existing construction methods or materials qualify as R&D?
Yes, making significant improvements to existing construction methods or materials, especially if they involve new processes or technologies, can qualify for R&D tax relief. The key is that the project must resolve a scientific or technological uncertainty that couldn’t be easily solved using standard industry practices.
Can we claim R&D tax credits for work done on-site?
Yes, if the work involves overcoming technical challenges on-site, such as developing new construction methods to deal with difficult terrain, innovative site logistics, or real-time problem-solving during construction, these activities can qualify for R&D tax relief.
Are sustainability and energy efficiency projects eligible for R&D tax credits?
Yes, projects aimed at improving energy efficiency, developing sustainable materials, or creating low-carbon buildings can qualify, especially if they involve novel solutions or resolve significant technical challenges. This includes work on zero-carbon buildings, renewable energy integration, and passive house designs.
What costs can be included in an R&D tax relief claim for construction projects?
Eligible costs include staff salaries for those involved in the R&D project, materials used in the development and testing phases, subcontractor costs (for specific R&D activities), software related to R&D work (e.g., BIM), and utilities directly tied to the R&D process. Prototype development, testing, and iterative design costs are also typically claimable. Check our comprehensive list above and if you have more questions, get in touch.
Can failed projects still qualify for R&D tax credits?
Yes, failed projects can still qualify for R&D tax relief, as long as the project sought to resolve a scientific or technological uncertainty. The relief is based on the effort to innovate or solve a problem, not the success of the outcome.
Can subcontracted work be included in our R&D tax relief claim?
Yes, subcontractor costs can be included, but the amount claimable depends on whether you are using the SME R&D scheme or the Research and Development Expenditure Credit (RDEC) scheme. SMEs can claim up to 65% of subcontractor costs related to R&D.
Does developing bespoke construction solutions qualify for R&D?
Yes, if your project involves developing bespoke or innovative solutions to meet unique site requirements, design challenges, or environmental conditions, these activities can qualify for R&D tax credits. This could include custom foundation designs, new approaches to difficult terrains, or site-specific engineering solutions.
How are R&D tax credits calculated for the construction sector?
For SMEs, R&D tax relief can provide a benefit of up to 33% of qualifying R&D costs, depending on profitability and tax liabilities. For large companies claiming under RDEC, the benefit is typically 13% of eligible R&D expenditure. The specific benefit depends on whether the company is making a profit or a loss.
Can we claim R&D tax credits for work on modular or prefabricated buildings?
Yes, developing modular or prefabricated building techniques, especially if the work involves resolving technical uncertainties or improving the efficiency of the process, can qualify for R&D tax relief. This includes work on designing prefabricated components or improving assembly techniques.
Can we claim R&D tax relief for digital tools and technologies used in construction?
Yes, if you are developing or significantly enhancing digital tools such as BIM, automation software, or digital twin technologies to improve construction processes, these activities can qualify for R&D tax credits. Innovations in project management software or IoT integration may also qualify if they involve overcoming technical challenges.
Can we claim R&D tax relief for health and safety improvements on-site?
Yes, if your project involves developing new health and safety systems or technologies that resolve a technical challenge, such as improving site safety through automation, innovative scaffolding, or real-time monitoring systems, these activities can qualify for R&D tax relief.
What happens if we receive grants or other public funding? Can we still claim R&D tax credits?
Receiving government grants or other public funding can affect your eligibility for the SME R&D scheme, but you may still be able to claim under the RDEC scheme, which offers a lower rate of relief. It's important to check how the funding is treated when making your R&D claim.
Does BIM development and implementation qualify as R&D?
Yes, developing or enhancing Building Information Modelling (BIM) software or processes, particularly if it involves resolving technical uncertainties, can qualify for R&D tax relief. This includes improving the functionality of BIM systems or integrating them with other innovative construction technologies.
Are innovations in infrastructure projects, such as bridges or tunnels, eligible for R&D tax credits?
Yes, developing new methods for building bridges, tunnels, or other infrastructure—especially in complex environments or where new engineering techniques are required—can qualify for R&D tax credits. This includes innovations in foundation work, geotechnical engineering, or large-scale civil engineering projects.
Can we claim R&D tax relief for improving environmental performance in construction?
Yes, developing techniques to reduce environmental impact, improve energy efficiency, or create more sustainable construction methods can qualify for R&D tax credits. This could involve using sustainable materials, improving waste management, or creating energy-efficient building systems.
Many construction companies work with specialist advisors like us to ensure they maximise their claims and comply with HMRC’s requirements. Why not get in touch or start a trial of our R&D tax claim portal?