Architecture – Bahk Consultancy

R&D Tax Credits in Architecture

The Architecture industry is extremely innovative by nature. It has so much space for exciting innovation, and it is one of the most influential sectors when it comes to improving society’s daily life globally. The adaption of new technology has changed the whole game for many Architects by completely revolutionising their design process, spanning from creating new design processes and software to the creation of new materials. Not only is this revolutionising the path for Architects in the UK but across the globe as well.

What Qualifies For R&D In Architecture

As many Architects are already conducting innovative R&D activity without realising it the chances are you will recognise a lot of qualifying activity in your own work. The main focus is that you are will to take daring and bold risks in order to overcome a scientific or technological uncertainty.

Some examples of qualifying expenditure are:

Finding Energy Efficient Methods

Placing a focus on creating more sustainable and energy efficient processes

Advancements in Cutting Edge Equipment

Advancements in robotics, e.g: 3d printing, computer modelling, laser-cutting etc

Creating Design Tools

The creation of ground-breaking design tools is vital for Architecture’s modern progression

Overcoming Architectural Problems

Coming up with unique solutions to Architectural Challenges

The rules of R&D are not exclusive to the above list. They are put into place to reward and refund those who are dealing with uncertainty.

Failed Innovations Still

Qualify For Refunds!

The result of your R&D doesn’t have to be a success! Your business can still be eligible for a refund even if the project was unsuccessful!

Examples of R&D Projects in Architecture

Incorporating Sustainable Design

Incorporating informed design choices surrounding Sustainability and working towards eco-friendly outcomes for R&D projects will often make them eligible for R&D Tax Credits.

Developing Bespoke Software

Agricultural machinery Crop producing and livestock breeding Medications and supplements for livestock Pest control and fertilisers for crops

Adapting New Technology

Adapting ground breaking technology through making modifications to existing designs to resolve an uncertainty, will qualify for R&D Tax Credits.

Undertaking Research

Developing research surrounding activities such as prototyping, building materials, and increasing general Architectural knowledge.

Updating Traditional Methods and Materials

Finding new ways to use traditional methods and materials that have never been used before in complex design, and challenging locations, often qualifies for R&D Tax Credits.

Overcoming Restrictions

Overcoming restrictions and challenges through the development of new technology, materials, AI software, manufacturing techniques and machine learning to look for solutions. Redesigning products in an innovative way to fit the constraints of the project will qualify for R&D Tax Credits.

What Costs Can I Claim Back?

There are five categories within Agricultural R&D claims that can be claimed back for; subcontractors, staff costs, externally provided works (EPWs), consumables and finally, heat, light and power.

Below, we have detailed how you could include these in your claim.

How can I use Subcontractors in my claim?

If you rely on a third party to help with part of the R&D process – this isn’t an issue! You can still use These claims are qualifying expenses for the R&D tax relief scheme.

Can I claim back R&D Tax Credits for staff costs?

A large majority of R&D Tax Relief claims involve staff costs, these costs can be encountered for staff who are involved in the R&D project either directly or in-directly.

A direct staff cost that is claimable is the expertise or advice from a competent professional, this is usually someone in a senior position in the industry that has had a direct involvement or effort in the R&D project, or a member of staff that has a defined and technical role that is actively involved in the project.
An indirect staff cost is still valuable in the process of your claim, it covers the ground of members of staff that help to enable R&D by being part of the management process or help to support the R&D taking place.

How do Externally Provided Workers affect your claim?

Externally provided workers (EPWs) are temporary workers on your R&D project, they are often sourced from an external agency who is responsible for their contract. The expenses spent on EPWs are still eligible for part of your claim, in fact you can claim up to 65% of tax credit relief on them no matter how big or small your company is.

What are Consumable Items and how do I use them in my R&D project?

A consumable item is any item that is used or transformed whilst in the process of undergoing R&D activity. It includes items such as raw materials, software licenses or even stock used in your project.
The idea is that these items no longer have any use after the project as they are so consumed by the activity undertaken and can be counted as qualifying expenditure.

What utility costs can I claim from my R&D activity?

The utilities that you use during your R&D activity, such as heat, light, power and water are all eligible to claim back with your tax relief claim. You just need to work out the proportion of each of them that was used during the activity.
This can be difficult to work out, however that is where we are here to help you with at Direct R&D using the knowledge and experience of our expertise advisors.