According to the latest research, architectural firms are missing out on more than £150 million a year in Research and Development (R&D) tax credits.
The research has highlighted the importance of being aware of the tax reliefs available to businesses, with many simply not considering that the architectural sector could be eligible for R&D tax credits, with the emphasis often being placed on engineering, pharmaceuticals and the automotive industries.
It’s important to note that claims can be backdated for two tax years, with the average claim per firm being £31,000.
There are currently more than 7,500 architecture firms in the UK, with more than 6,000 qualifying for R&D tax relief by creating a new product, service or product, or by changing an existing product, service or process for the better.
However, 80 per cent of eligible architecture practices are not claiming for the tax relief, leaving more than £150 million in unclaimed R&D tax credits every year.
Any work that requires an architect to create a new process or product is likely to qualify for the relief, which could come in the form of new construction material, a technical improvement, or simply the development of new or improved computer software.
Crucially, even if the work is carried out by a contractor, the associated costs are still allowable under the Government’s R&D funding scheme.
For help and advice on ensuring your clients are taking advantage of the R&D tax credits that they are eligible for, contact our expert team at Kapitalise today.