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.
Featured Guest
More Fireside Chats

The Budget Is Coming — and It's Contractors Who'll Feel It First
Accountant and construction-sector specialist Hayley Gedney breaks down what UK contractors are really up against right now — and what to expect from the upcoming budget.

Being Flat Out Doesn't Mean Your Business Is Healthy
Alison from Evolve & Grow Coaching breaks down the three things that quietly make or break trade businesses: the numbers, the systems, and the people.

"We're Too Small to Be Targeted" — Why Hackers Love That Attitude
Cyber security expert Jenny Melling explains why contractors are prime targets — and what simple steps can protect your business from devastating attacks.