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PaperDrop
Finance & Tax
15 min
February 16, 2026

Do Construction Companies Really Qualify for R&D Tax Credits?

Key Takeaways

  • 1.Most construction firms assume R&D tax credits are only for labs and big corporates — but that's often wrong
  • 2.Innovation in construction includes developing new methods, solving unique site challenges, and carrying financial risk on untested approaches
  • 3.One contractor who thought they didn't qualify received over £50,000 back — for around 4–6 hours of their time
  • 4.In an industry facing tight margins, rising costs, NI increases, and skills shortages, cash flow matters more than ever
  • 5.When job costs, labour, materials, and project details are already tracked in software like PaperDrop, exploring R&D becomes far simpler
  • 6.No need to dig through 12 months of spreadsheets — structured data makes the process painless
  • 7.PaperDrop clients benefit from a partner discount with Leyton for R&D claims

We sat down with Daniel Bone from Leyton for our latest PaperDrop Fireside Chat — and one thing really stood out: most construction firms don't think they're "innovative". They assume R&D is labs, science coats, and big corporates. So they never even check.

"They believed they didn't qualify… until a conversation revealed they were developing a new, less invasive underpinning method and carrying the financial risk."

— Daniel Bone, Leyton

The result? Over £50,000 back into the business — for around 4–6 hours of their time.

Why This Matters Now

💷 Tight Margins, Rising Costs

With rising labour and material costs, National Insurance increases, and ongoing skills shortages, cash flow matters more than ever for UK contractors.

🔬 R&D Isn't What You Think

Innovation in construction isn't about lab coats. It's about solving unique site challenges, developing new methods, and carrying the financial risk on untested approaches. That counts.

📊 The Data Angle

When your job costs, labour, materials, and project details are already tracked properly in a system like PaperDrop, exploring R&D becomes far simpler. No digging through 12 months of spreadsheets. No trying to remember what happened last April. Just structured data, ready to use.

⏱ Minimal Time Investment

The whole process typically takes just 4–6 hours of your time. For potentially tens of thousands of pounds back into your business, that's a no-brainer.

🤝 PaperDrop Partner Discount

If you're a PaperDrop client, there's a partner discount in place with Leyton for R&D claims. Your data is already structured — so the process is even simpler.

🔗 Learn More About Leyton

If you're a contractor and have ever thought "R&D isn't for us" or "it'll be too much hassle" — this is worth 15 minutes of your time. Watch the full conversation above.

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Featured Guest

DB

Daniel Bone

R&D Tax Specialist

Leyton
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