The Royal Institute of British Architects (RIBA) has today (Thursday 31 May) published free guidance for architects on the tax credits that are available for Research & Development (R&D). ‘UK Research and Development Tax Credit Scheme – a guide for architects’ has been published in response to Institute concerns that architects may be unaware they are missing out on thousands of pounds in tax credits for their R&D work.
The R&D tax credit scheme has paid out nearly £6 billion in tax relief to some 24,000 companies since its introduction in 2000. Recent changes to the regulations mean that small and medium-sized enterprises (SMEs) could see a return of up to £25 for each £100 spent on R&D on or after 1 April 2012. The average claim for SMEs was £40,000 in 2008-9, rising to an average of £82,000 for those who had claimed regularly in the past.
The RIBA guide, written by consultants Capita Symonds, emphasises that many architects who carry out research and development work on an informal basis or as part of a fee-paid job may not realise that they are able to claim relief on corporation tax.
RIBA Head of Technical Research Anne Dye said:
'It is important that architects realise that work which is part of their day-to-day activities could actually fall under the heading of R&D for tax purposes. This guide encourages more architects to explore the possibility of claiming tax credits.'
Chair of the RIBA Research and Innovation Group Professor Murray Fraser said:
'British architecture depends on investment in R&D to keep it at the forefront of the profession worldwide. In the current climate, support for practices who undertake R&D is more important than ever, as are initiatives which attract more architects to the tax credits scheme.'