At Williamson & Croft, we frequently encounter clients who assume that Research and Development (R&D) tax relief is reserved for scientists in white lab coats or teams designing revolutionary software.

In truth, R&D tax credits apply to a much broader range of industries, including construction and civil engineering. One recent client engagement demonstrated just how significant the benefit can be when a company takes on technically challenging work, even when that work is part of a day-to-day project.

In this case study, we explore how one UK-based construction firm successfully secured a substantial R&D tax credit through the Research and Development Expenditure Credit (RDEC) scheme.

By recognising the scientific and technological uncertainties they overcame in a high-stakes infrastructure project, the company was able to claim over £230,000 in qualifying expenditure.

This article highlights how the claim was structured and why your business may be eligible for similar relief.

Understanding R&D Tax Relief in the UK

R&D tax relief is a government-backed incentive designed to encourage innovation and technical advancement within UK businesses. It allows companies to recover a portion of their development expenditure either through a tax reduction or, in certain cases, a cash credit. To qualify, a company must demonstrate that it has worked to resolve a scientific or technological uncertainty, and that this work has involved systematic investigation and development.

There are two primary schemes available. The SME scheme applies to small and medium-sized enterprises that meet certain thresholds for staff headcount and turnover. The RDEC scheme, on the other hand, is designed for larger companies or SMEs that have been subcontracted by larger entities to perform R&D activities. While the RDEC scheme typically provides a lower rate of relief compared to the SME scheme, it is nonetheless a valuable financial benefit for eligible businesses.

The Client and their Project

The company at the centre of this case study is an established construction and engineering business operating throughout the UK. With deep expertise in structural and civil engineering, the company was subcontracted to contribute to the development of a waste-to-energy facility.

The project involved extensive groundwork and complex site logistics, particularly relating to the design and installation of a new cofferdam system directly adjacent to an existing one.

Cofferdams are temporary enclosures used to allow construction work to proceed below the waterline or in water-saturated soil. Typically, they are constructed in isolation, allowing contractors to work in a dry, protected area.

However, in this case, the company was faced with the challenge of building a second cofferdam immediately next to one that had already been installed, in a highly constrained and sensitive site environment. This situation presented a range of technical risks and engineering unknowns that could not be resolved using standard construction methods.

Identifying the R&D Component

Although cofferdams are a well-known part of civil engineering, the configuration and demands of this specific project were unique. The company needed to resolve how forces from the new structure could be safely redistributed without compromising the structural integrity of either the new or existing cofferdam.

This required the development of novel connection systems between support elements known as walers. In addition, there were significant concerns about how to minimise vibrations during pile driving in loose, gravelly soil, vibrations that could damage nearby structures and live underground services.

These problems could not be solved using off-the-shelf methods or by following standard industry practice. The company’s engineers conducted detailed structural analysis, developed customised propping systems, tested various connection designs, and continuously monitored results on-site to adjust for real-world variations. This process involved iterative development, trial and error, and a systematic approach to risk mitigation, all of which contributed to resolving genuine scientific and technical uncertainties.

The work went beyond simply applying existing knowledge. It aimed to achieve an advance in the field of groundworks and temporary structural support by generating new knowledge applicable to similarly constrained environments in future projects.

Structuring the R&D Claim

Because the construction company was subcontracted by a large international energy provider, the claim was made under the RDEC scheme, despite the client itself qualifying as an SME.

We worked closely with the client to accurately identify the qualifying elements of their expenditure, ensuring all costs were apportioned correctly and met HMRC’s strict criteria.

The claim included staffing costs for engineers and project managers directly involved in the R&D activities. It also incorporated payments made to external specialists and the cost of consumable items used during the development and testing phases.

In total, the claim identified over £200,000 in qualifying expenditure across these categories. This claim resulted in a significant tax benefit for the company, which was subsequently reinvested into future project development and workforce growth.

A Broader Message for the Construction Industry

This case illustrates a broader point about how construction and engineering firms often underestimate the value of the innovative work they undertake. When companies create or adapt processes to suit new and technically challenging site conditions, they may well be engaged in R&D, especially when standard methods fall short or fail to address unique risks.

In this case, the client was not inventing a new type of material or launching a high-tech product. They were solving highly specific structural and environmental problems that required scientific and engineering know-how, experimentation, and a departure from existing techniques. That is exactly the type of activity R&D tax relief is designed to support.

How We Can Help

If your company is undertaking complex or bespoke construction work, adapting technologies for use in unusual environments, or developing new methodologies to meet client specifications, you may be eligible for R&D tax credits, even if the work doesn’t immediately appear to be ‘innovative’ in the traditional sense.

At Williamson & Croft, we specialise in identifying qualifying activities across a broad range of industries, including construction, manufacturing, and software development.

Our team will guide you through every step of the claim process, from initial assessment to submission and follow-up with HMRC. We work to ensure claims are fully compliant, well-documented, and maximised for impact.

Start Your R&D Claim with Confidence

If you think your business may be missing out on valuable R&D tax relief, we encourage you to get in touch with our expert team.

Whether you’re a first-time claimant or looking to optimise an existing process, we’re here to help you unlock the value of your innovation.

To arrange a no-obligation consultation, contact us today.

Let us help you turn your technical challenges into tangible financial rewards.