Research and development tax credits for architects have allowed practices to innovate, grow and be rewarded for taking risks by minimising losses. Combined with Novel, an R&D tax relief software that educates users on how to claim relief in-house and facilitates on-going R&D tracking, architects are able to write robust in-house tax relief claims in a fraction of time and save money.
What is the benefit of R&D tax relief for architects?
A common problem for architects is the need to balance the desire for experimentation, with the requirement to stay within a client’s budget. We believe that restructuring the way you work to consider applying for an R&D tax credit can promote the culture of experimentation and boundary-pushing while still being cost-efficient.
To encourage innovation, the government offers tax relief for businesses that engage in research and development. This includes architects, who can claim a deduction for expenses related to the design of new buildings and products or improving existing ones. Architecture firms can claim a tax deduction for expenditure on R&D activities, including salaries, materials, and subcontractor costs.
By offering this tax relief, the government is encouraging architects to push the boundaries of their profession and develop solutions. As a firm, considering whether you can structure your activities around claiming R&D tax relief within your practice will help promote the teams’ creativity, finance new bolder projects and ensure that you stay at the forefront of the industry.
How Novel helps architects learn how to write compliant R&D tax relief claims
Novel is an R&D tax relief software that guides users through the process of writing a claim, providing explanations and templates that can be used to make sure that the claim meets all the necessary requirements. By using Novel, architects are able to write about the innovative work they do and claim relief on the money spent, all in-house. When it becomes a standard practice within your firm, we hope to see that you begin to further push the boundaries of what is possible.
How architects can use Novel to track ongoing research and development projects?
Architecture is grounded in exploration and systematic design. When innovating and working on something new, it’s not enough for architects to design something striking, instead, it also needs to be structurally, aesthetically and functionally sound. For this reason, prototyping plays such a big role in the industry. Coupled with the benefit of claiming R&D tax relief, prototyping becomes an even more powerful tool as the pain and financial drain of something not working gets minimised by the ability to claim relief on the money spent. However, this benefit extends beyond prototyping.
Architects can claim R&D tax relief on any activity where there is a systematic, technological or scientific uncertainty that needed to be overcome. Within Novel, there are options to record everything that went into an R&D activity from prototyping, failed attempts and various methods of implementation. You know the different activities that make up a single project best and, therefore, are perfectly positioned to write about it all you need is the right tool.
Although we recommend tracking all your projects and activities in real-time to help elevate some of the stress when it comes time for your limited company to prepare the R&D tax relief, we understand that it is not always possible. Nonetheless, you’re still able to benefit from all the above tools within Novel even if you’re not tracking R&D in real time but be sure to keep a note of all the things that went into a project, as you wouldn’t want to miss out on claiming related R&D expenses.
Try Novel today with our free 1 month trial.