R&D Tax Credit Scheme
Since its introduction in 2000, the R&D Tax Credits scheme has led to £billions being claimed by companies for their work on scientific and technological research and development (R&D). Organisations such as The Royal Institute of British Architects (RIBA) and the All-Party Parliamentary Design and Innovation Group (APDIG) are urging UK architects not to miss out what they are potentially owed..
Innovation Tax Breaks for Architects
When it comes to architecture and R&D tax credits, RIBA is campaigning to ensure architects are rewarded for the innovative work they do. This includes those who are harnessing new technology and experimenting with materials. The R&D tax credit scheme reduces Corporation Tax, or a cash sum can be received, if the company is non-profitable.
Examples of R&D activities seeking scientific or technological advancements in architecture include:
- Research and testing of new materials and their performance
- Combining products and materials for different purposes
- Developing new software or using technology to create an efficient, customised process
- Optimising performance with a unique operational process
- Unique engineering operations to create a new structure
- Using civil engineering to overcome geographical obstacles
- Enhanced structural designs not seen before or used in new environments
- Prototype testing, creation and ongoing analysis
- Identifying design constraints and developing solutions
Many architects are failing to recognise the relevant R&D work they undertake, leading to practices missing out on this beneficial tax relief. Qualifying expenses on the project include materials, software, consumables, staff wages and external worker costs.
Claiming R&D Tax Credits in the Architectural Sector
When it comes to claiming R&D tax credits in the architectural sector, there are some simple questions that businesses can ask themselves to determine if they are eligible. For example, have innovative methods or processes been used? Was significant time and/or money spent in trying to resolve scientific or technological uncertainties during the execution of a project? If the answer is yes, an R&D tax specialist can be contacted to confirm the company’s eligibility and advise on the potential value of the claim. It’s then up to the individual firm to decide whether they want to proceed.
Find Out More About Tax Deductions for Architects
The importance of tax planning for architects is essential for maximising their finances. Here at R&D Tax Solutions, we specialise in helping companies across a wide range of industries to claim R&D tax credits for qualifying activities. This includes offering flexible arrangements whereby we provide the support you need in this specialist area without disrupting your existing accounting relationships. The services we provide to architects are enhanced by our specialist knowledge of tax relief within the architectural industry, increasing the chances of a successful claim.