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HMRC R&D Tax Credit Statistics for 2023-24

Construction, Civil Engineering and Specialised Construction

3,340 Claims
£365 Million Claimed in this Industry
£109,281 Average Claim Size
INTRODUCTION

Understanding R&D within Structural and Civil Engineering

Accessing R&D tax relief in the UK for structural and civil engineering projects requires more than identifying innovation at a surface level. It depends on translating complex engineering challenges, technical problem-solving, and project delivery into a structured, compliant narrative that aligns with HMRC expectations. Businesses operating in highly specialised areas of structural and civil engineering benefit from working with advisers who understand both the regulatory landscape and the practical realities of delivering technically demanding infrastructure and construction projects. With the right approach, companies can ensure their R&D activity is accurately captured, robustly supported, and positioned to withstand scrutiny, while maximising the value of the relief available.

It’s important to understand that most day-to-day engineering activities will not qualify for relief. However, R&D tax relief is not an “all-or-nothing” claim. We assess entire projects to understand the full technical context, but only identify and claim for the specific elements within those projects where genuine innovation or problem solving has occurred.

 

 

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Core Sectors Within Structural and Civil Engineering

The six main industry areas that make up the structural and civil engineering sector
Structural engineering Designing the load-bearing parts of buildings, bridges, towers, and other structures.  
Transportation Deals with roads, railways, airports, traffic systems, and public transport networks.  
Geotechnical Studying soil and rock conditions to support foundations, retaining walls, tunnels, slopes, and other structures built on or in the ground.  
Environmental Works on pollution control, waste treatment, air and water quality, and sustainable design.   
Water resources engineering Manages water supply, drainage, flood protection, irrigation, and hydraulic systems such as dams, canals, and storm-sewer networks.  
Construction engineering & management Focuses on planning, coordinating, and delivering projects on site, including scheduling, methods, cost control, safety, and quality management.  

Examples of R&D activity in Structural and Civil Engineering

  • Innovative Build Methods & Product Development 
    Trialling or developing new construction products, techniques or processes not readily available in the industry.

  • Unusual Structures 
    Novel structural forms or geometries, such as complex cantilevers, long-span roofs, and highly irregular frames. 

  • Engineering In Extreme Contexts 
    Improving performance under extreme situations where you need to develop or validate new analysis or detailing methods, such as blast, seismic, disproportionate collapse, fire, and material/structural fatigue. 

  • Challenging Site Conditions
    Tackling issues such as restricted access, contaminated land, or unusual ground conditions.
  • Changes in Building Regulations 
    Navigating compliance standards with precision, ensuring builds stay ahead of legislative shifts and avoid setbacks. 

  • Value Engineering
    Maximising performance through smart design choices, innovative materials, and lean construction processes without compromising on quality. 



This is not an exhaustive or definitive list. It should be considered a starting point only. Every project must be evaluated individually based on its unique technical challenges and merits.

What Does This Relief Translate to in Real Terms?

To help bring this into context, we've included a selection of anonymised client examples showing the types of projects that have qualified, along with the level of relief they were able to claim.

What doesn’t count as R&D in Structural and Civil Engineering

  • Aesthetic or architectural styling of structures
  • Market research for construction projects
  • Routine copying of existing building or bridge designs
  • Standard code compliance and building permit submissions
  • Cost estimation and project budgeting
  • Using off-the-shelf construction materials as intended
"Very impressed with the teams technical knowledge when writing the reports, and understanding of complex engineering projects that I wouldn’t expect anyone but our engineers to understand. Wilby Jones exceeded my expectations in terms of the technical understanding of our work. Has been very easy working with WJ, they check in with us throughout the year and notify us when we need to start the process again."
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Graphic Structures Civil and structural engineering consultancy
INSIGHTS PREVIEW

WHAT WE HAVE TO SAY

Our fantastic team of report writers have prepared articles covering the land of tax extensively. If you have a question relating to accounting or tax, it's likely we've already written the answer.

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The Claim Process

We understand the complications that can often arise when completing an R&D claim, not to mention the significant amount of time it can consume, diverting your attention from driving your innovation forward. That's why we have streamlined a transparent and hassle-free process that follows a step-by-step approach from start to finish.

Throughout your R&D claim process, we maintain open lines of communication tailored to your preferences. Once we have compiled comprehensive technical and financial reports, we take the responsibility of submitting them and proactively follow up with HMRC, leading the communication on your behalf. Often, our next contact with you brings the exhilarating news of success and positive outcomes.

  • Step 1

    We'll gain your authorisation via our client instruction form/NDA. This will enable us to discuss your R&D activities along with your current tax position. This will enable us to discuss your R&D activities along with your current tax position.
  • Step 2

    We'll analyse the profit & loss (P&L) statement of the business while facilitating your technical call. This step aims to determine whether your case is feasible from both technical and financial perspectives.
  • Step 3

    Once our experts are confident that your case meets the R&D eligibility criteria, we will then gather all the required technical information and financial documentation according to HMRC's standards to support your case.
  • Step 4

    At this stage, we initiate a stringent compliance procedure that we have developed in-house to audit your R&D claim application. We verify whether it meets the defined standards before submitting it to HMRC to ensure a positive outcome.
  • Step 5

    After conducting a comprehensive review of your R&D claim, including all required documentation, the application will be forwarded to HMRC for further processing.
  • Step 6

    Our team maintains continuous contact with HMRC regarding your case. If any queries arise, we address them on your behalf using a highly systematic approach to maximise your outcome while minimising any delays in your repayment.
HOW EFFECTIVE ARE

DSIT Guidelines

The DSIT Guidelines form the foundation for compliance when preparing an R&D claim. In conjunction with the wider scope of HMRC’s guidance in relation to R&D Tax Relief, they set out how to determine whether work qualifies and provide practical examples of how to apply the criteria to evidence R&D within a project. These guidelines should not only underpin the assessment process when compiling a claim but can also be referenced during an enquiry defence if required. By demonstrating to HMRC how a project aligns with the definitions and scenarios outlined, you can clearly evidence that the innovation undertaken qualifies for R&D tax relief. Below are five of the guidelines we most frequently rely on to support qualifying work. 

DSIT 3 Software projects aim to advance knowledge or capabilities within the sector, often addressing challenges in system architecture, platform integration, or scalable software design.  
DSIT 7 Companies often seek to advance a field of science or technology which can have either tangible consequences, such as improving the security of a system by implementing a segmented software architecture for an existing system; or intangible consequences, such as new knowledge regarding integrations of legacy products or the behaviour of various data structures.   
DSIT 9 A project may extend overall knowledge, create a process or device, make an appreciable improvement to an existing process, or duplicate the effect of an existing product, to name a few types of qualifying activity.  
DSIT 11 If a particular advance in software engineering has already been made or attempted but details are not readily available, work to achieve such an advance is R&D. For example, where a software company has already developed a process that could more accurately consolidate disparate data sets, but the process is a trade secret, a company seeking to develop a similar process is still considered R&D.  
DSIT 21 Overall knowledge or capability can still be advanced in situations where companies are working in the same field independently, work is a trade secret, or where the details are not readily available; even where it is known that a particular advance has already been achieved.   

HMRC often reference software development examples throughout its guidance.

Drawing direct comparisons to HMRC’s own examples offers a clear and simple way to evidence compliance in R&D projects, whether relating to a single technical detail or an entire scheme. 

The following pages set out examples drawn directly from HMRC’s published guidance, which we reference where relevant within our reports. 
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A company is conducting R&D in the development of a software service for the commercial banking market in the US. Development requires the company to have a collocated team in the US due to access regulations within the US banking sector. This requires conditions (the presence of US banking systems and regulatory requirements) which are not present in the UK, and which would be wholly unreasonable to replicate. 

This condition exists in the US. Therefore, this activity would satisfy CTA09/1138A if undertaken in the US, where the necessary conditions arise. Under the new ‘merged’ R&D scheme, overseas costs that used to be claimable may be blocked from a claim and so it’s important to ensure your work remains compliant in the modern R&D landscape.

CIRD152000, Example 5

In determining the relevance of your R&D work, we firstly assess whether the work advances your field of science of technology, however we then need to consider what makes your work technologically or scientifically uncertain. A technological or scientific uncertainty exists when knowledge of whether something is scientifically possible or technologically feasible, or how to achieve it in practice, is not readily deducible or available by a competent professional working in the field as per S.13 DSIT guidelines.

CIRD81960

Managing Enquiries - Case Studies?

The following examples illustrate how investing in R&D can deliver tangible results, especially in complex software projects. They are presented from a tax perspective rather than a technical viewpoint, explaining projects in a way that HMRC will recognise and accept, rather than using traditional industry language. Each study focuses on how the project is described, rather than providing a full breakdown of the DSIT guidelines applied. For further detail, more comprehensive case studies are available on the Wilby Jones website.

CONCLUSION

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