Construction firms spent £1.36 billion on research and development in the first part of 2018/19 – more than in the whole of 2017/18 The average construction R&D claim is now worth over £70,000 London and South-East England are home to the most innovative construction companies UK construction companies are increasing
Too much work, time pressures and unprepared customers – these are the top three causes of stress at work, according to a new survey of almost 600 tradespeople by IronmongeryDirect. Work-related stress and mental illness now account for over half of all lost work days in the UK*. However, despite
Construction firms spent £1.36 billion on research and development in the first part of 2018/19 – more than in the whole of 2017/18 The average construction R&D claim is now worth over £70,000 London and South-East England are home to the most innovative construction companies UK construction companies are increasing their investment in innovation, with research and development (R&D) expenditure rising by £70 million, according to new figures released by HMRC[1]. Analysis by IronmongeryDirect, the UK’s largest supplier of specialist ironmongery, has revealed that in the first part of 2018/19, construction firms spent £1.36 billion on qualifying projects. Even though many claims have yet to be submitted for that financial year, this is already 5.4% more than the whole of 2017/18 (£1.29 billion). Using the government’s R&D Tax Credit Scheme, companies can claim back up to 33p for every pound spent on R&D activity. This includes any project that aims to advance the industry by researching or developing a new process, product or service, or improving an existing one[2]. For such work completed during 2018/19, construction companies have already claimed £235 million of Corporation Tax relief. More companies in the sector are starting to take advantage of the scheme, as the latest data shows overall number of claims is also on the rise. So far, construction businesses have made 3,340 claims for R&D funding, which is a year-on-year increase of 1.8% (60). The industry now represents 5.7% of all R&D claims in the UK. The majority of the construction-related R&D projects are classed as ‘specialised construction activities’. These account for two-thirds (66%) of the sector’s claims, way ahead of ‘construction of buildings’ in second place (21%). However, the most valuable construction R&D claims are those labelled as ‘civil engineering’. Across the whole industry, the average R&D claim in 2018/19 was worth £70,359 – almost 5% higher (£3,286) than the year before (£67,073) – but the figure is far greater for civil engineering projects. The typical amount of tax relief awarded to such work is £129,412. The totals also vary significantly across the UK. The most innovative area is London, with more claims made in the capital than any other part of the nation (455). But it is Northern Ireland where construction represents the greatest percentage of a region’s total R&D claims. More than one in ten (11%) of the country’s qualifying projects fall within the industry (180/1,605). Despite only making the fourth highest number of claims, construction firms in the North-West of England are investing the most money in innovation. Its businesses have already registered £145 million of R&D spend for 2018/19 – more than any other area. The regions which have made the most and least claims for construction R&D funding for 2018/19, so far, are: 1) London – 455 claims (£55m) 2) South East – 425 (£85m) 3) East of England – 400 (£5m) 4) North West – 375 (£145m) 5) West Midlands – 295 (£10m) 6) Yorkshire and the Humber – 255 (£85m) 7) South West – 250 (£10m) 8) East Midlands – 215 (£10m) 9) Northern Ireland – 180 (<£5m) 10) North East – 165 (£40m) 11) Scotland – 165 (£10m) 12) Wales – 155 (<£5m) Dominick Sandford, Director and Head of Merchandising & Marketing at IronmongeryDirect, said: “It’s encouraging to see that so many UK construction companies are taking advantage of the R&D Tax Credit scheme. Our businesses are world-leaders for innovation and the HMRC initiative is designed to reward them for their pioneering work. “The tax relief can provide a welcome boost for construction firms and any money saved can even be reinvested to finance further research.” For expert advice about R&D tax relief, including whether your company is eligible, visit: https://www.ironmongerydirect.co.uk/blog/industry-innovation
Too much work, time pressures and unprepared customers – these are the top three causes of stress at work, according to a new survey of almost 600 tradespeople by IronmongeryDirect. Work-related stress and mental illness now account for over half of all lost work days in the UK*. However, despite this, the survey found that only 11% of tradespeople have taken any time off work in the last year because of mental ill-health. With over a third (34%) reporting regularly feeling stressed, this research paints a worrying picture. Almost half of the 587 respondents (43%) also believe there is still a stigma in the trades surrounding mental health, with respondents citing a ‘macho culture’, embarrassment, weakness and pressure to ‘get the job done’ as some of the contributing factors. The survey also revealed some generational differences, with tradespeople aged 18 to 30 being 20% more likely to talk about their mental health at work than their peers in the 50 plus age group. Despite the pressures of the day job, over half (56%) still feel that they have a good work/life balance, which is significantly higher than the national average of 33%** for all working people. The most commonly reported ways to relax when off the job include watching TV, walking the dog, and spending time with friends and family. Commenting on the survey findings, Marco Verdonkschot, Managing Director of IronmongeryDirect, said: “This survey has revealed an interesting insight into the physical and mental wellbeing of people working in the trades. Although great progress has been made across the sector when it comes to talking about workplace mental illness, it is clear that there is still a way to go and it’s vital that employers spot the signs of mental ill-health and create the right environment where staff feel they can speak up. It is very positive, however, to see that despite working in a demanding industry, many tradespeople still have a high level of job satisfaction and feel that their employer cares about their general wellbeing.” IronmongeryDirect has over 18,000 products available and in stock. Orders can be placed as late as 8pm for next day delivery from Sunday through to Friday and by 4pm on Saturdays. Free, no quibble returns are available on all products. For more information, visit IronmongeryDirect.com or call their team of specialist advisors on 0800 168 28 28.
