Identifying the innovation in the every-day at Aztec
With technology, legislation and MMC driving innovation in the construction industry, there is significant scope for construction sector businesses to submit claims for R&D credits. Yet few companies do submit a claim, missing out on the transformative effects that the, potentially substantial, award could have on their business. Aztec, a specialist in interior Fit -out, refurbishments, and construction is an excellent example of how construction sector companies can benefit from R&D Tax credits and generate funds towards further R&D initiatives, including reduction of plastic consumption and waste.
The Opportunity
Aztec offers a true turnkey solution to its clients and is focused on offering more sustainable solutions to reduce the environmental impact of its projects.
This emphasis on seeking improved workflow methods, new techniques, increased efficiency and cost-effective solutions, means that the company is involved in extensive R&D activity as it strives to push industry standards. The work the Aztec team carries out is highly technical and often speculative, with the company working at risk and absorbing the costs if projects don’t go ahead.
Overcoming technical uncertainties is so routine for Aztec that the company’s leadership team considered complex problem solving and new innovation to be part of its day-to-day business. However, construction sector businesses like Aztec are ideally positioned to take advantage of R&D tax credits because they develop one-off tailored solutions as part of answering project requirements.
Aztec’s commitment to sustainability brought the company into contact with Changing Streams, the not-for-profit organisation working with the construction sector to reduce plastic consumption and waste in the industry. With Changing Streams’ support, the company decided to pursue an R&D Tax Credits claim with a view to reinvesting into future R&D and plastic reduction initiatives.
The Outcome
The specialist R&D team from Haines Watts, the chartered accountancy firm that supports the claims service on behalf of Changing Streams, carried out detailed interviews with Aztec to ensure an excellent understanding of the company’s work and identify its R&D activities. This support has continued beyond the claim, with Aztec now recognising the full extent of the innovation embedded in its operations. By establishing effective record-keeping processes to capture activities and associated costs in real-time, the preparation of comprehensive further claims is both smooth and confidently informed.
The Impact
The R&D Tax Credits have had wide reaching benefits for Aztec; from funding ground-breaking new projects, including initiatives to reduce plastic waste and identify non-plastic materials.
The R&D Tax Credits award has also enabled Aztec to join Changing Streams as a member, allowing the company to become part of a network of sustainability-focused businesses.
Alongside the positive financial benefits, the successful R&D Tax Credits claim has now also prompted the Aztec team to relax about spending time on research and development as part of bids for new work or to help clients overcome challenging problems, because they know they can claim back for the value of that time.
Client Feedback
“It is only when you are asked to look back and identify all the time you have spent on research and development that you find out how much you have invested in it as a company. For a business like Aztec, understanding the extent and diversity of forms R&D takes is invaluable and encourages us to push our technical boundaries and provide added value to our clients.”