I recently posted about the below Annual Investment Allowance only being taken advantage of by 42% of SME's within our industry. Well you can thank me for informing you that only a meager 1% of construction SME's are using their R&D tax credit incentive.
Brought in to encourage greater research and development spending, thus leading to greater investment and innovation, the HMRC recently reported that average value claims are down in this area.
This is the interesting part. Although SME's are aware of these breaks, it would seem they do not see "R&D" as a place for investment right now. Jenny Tragner, Director at ForrestBrown, suggests if you are investing in overcoming issues on site, doing things faster, more cheaply, safer or more sustainability, these could well qualify.
And then, of course, if you are faltering and loosing business because you're not digitally savvy, I would suggest this may well fall into the right category too!
Not an awful lot of commentary required around this post really. Putting it plainly, the government announced in the Autumn Budget that this allowance will be increased from £200,000 to £1m from January ’19 until 2021. With only 42% of firms aware of this increase via a recent survey, and given much of my audience being building product manufacturers, I felt it would be useful to share. Act now!