Joinery And Construction Firms Are Being Rewarded For Their Commitment To A Sustainable Future
Due to the increasing threat of the climate crisis, the UK government has introduced a net-zero target by the year 2050. This means that there is a balance between producing and removing greenhouse gas emissions from the atmosphere. To achieve this, the government has set out a number of initiatives in many sectors of the economy that focus on improving efficiency, increasing the use of sustainable materials, and reducing the reliance on unrenewable energy sources like fossil fuels. The transportation, energy, and construction sectors are all leading the way in the green revolution with huge strides being made in innovating eco-friendly alternatives to what is currently on the market. There has been a number of legislative amendments particularly in the construction industry that ensure buildings are increasingly energy-efficient, with a large amount of investment being directed into finding sustainable materials.
The government’s new construction regulations focus on embodied carbon, modern methods of construction, the performance gap in new builds, and businesses communicating more eco-friendly ways for consumers to use products and occupy spaces. The plans outline that over the coming years, homes should produce 31% less co2 emissions compared to current standards with specific rulings regarding the minimum performance of the U- values of products, fittings, and components. There are also guidelines concerning the thermal conductivity of frame materials amongst others.
To ensure businesses operate within the new criteria, a substantial amount of innovation and R&D is being carried out in the construction and joinery industries. The price of innovation can be high which is why the government is offering incentives to encourage R&D investment. One financial incentive that has been popular within the construction industry is R&D tax credits– a government-funded scheme that seeks to reward UK companies for spending time on innovation. According to HMRC’s annual R&D statistics, the construction sector made almost 4000 claims during 2018-19 and was awarded almost £400 million from HMRC. Whilst these figures reflect how construction businesses are being rewarded for their innovative advancements, there remain thousands of eligible companies that are not aware of the scheme, meaning millions of pounds are left unclaimed each year.
If you have a construction or joinery business that has spent time innovating existing products and processes or has created new ones, you could be eligible for R&D tax credits and a substantial sum from HMRC. Qualifying R&D activities include: trailing new materials, creating prototypes, trial and error, problem-solving, and many more.
