How UK PropTech startups can access capital through R&D Tax Credits.

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Compared to medical or financial industries, research and development (R&D) within PropTech is sometimes underestimated.  

But it’s undeniable that PropTech is paving the way for the modern housing market, enabling outdated systems to step into the future by integrating sophisticated technology with property services. 

The UK alone has amassed a mortgage market worth a staggering £1.3 trillion, so there’s huge opportunity for innovation that makes life easier for homeowners. 

There’s also widespread demand for products and services that help improve the notoriously dysfunctional landlord/tenant relationship. 

From the resident’s wellbeing to the construction of the home itself, the list is endless when it comes to ways in which PropTech can better society. 

By definition, research and development (R&D) refers to activities that companies undertake to innovate and introduce new products and services or to improve their existing offerings.  

What you might not know is that the UK government rewards R&D innovators, such as PropTech founders, allowing them to reclaim up to 33% of capital spent on R&D. 

This incentive scheme is known as R&D Tax Credits. 

Within R&D Tax Credits exists two separate schemes, designed for businesses of different sizes. 

The first (and more conventional) scheme is the SME R&D Tax Credit Scheme 

Its popularity boils down to the fact that early-stage businesses and SMEs qualify. Applicants for the SME Scheme must have: less than 500 employees; less than €86M in gross assets; and less than €100M in turnover. 

The SME R&D Tax Credit scheme is further determined by the business’ financial position at the time of claiming. 

Loss-making companies are entitled to claim up to 33% of total R&D eligible costs, which is paid directly, in cash, into your bank account. 

On the other hand, profit-making companies can be awarded up to 25% of R&D expenditure, this time in the form of a tax credit. 

The second, and simpler scheme is the RDEC R&D Tax Credit Scheme. 

Implemented for businesses that exceed the metrics of the SME Scheme, the RDEC scheme works to reclaim 13% of eligible R & D spending. This 13% is fixed (regardless of financial position) and after corporation tax, drops to around 10.5%. 

As RDEC applicants are high-growth companies dealing with large sums of money, this lower percentage still rewards huge financial benefit.  

If you’re new to the world of R&D Tax Credits, figuring out your eligibility and which costs can be reclaimed can be a complex task. And whilst running a business, not one that you can find time for.  

But don’t worry! Expert advisors at Claim Capital are on-hand to do the heavy lifting, and deliver successful R&D Tax Credit claims, year after year. 

Claim Capital provides an end-to-end R&D Tax Credit service for innovative companies. Our 20+ years of combined technical experience allows us to analyse PropTech spending under a microscope, and maximise the size of R&D claims.  

At Claim Capital, we believe in joint success, so we set out to break the tradition of percentage-based advisors. Most of our competitors will charge a fee of 10-30% of your claim size!  

We operate a cost-effective fixed fee, that’s paid only upon success. 

So, when your claim size grows alongside your company, you don’t have to worry about handing more money over to your R&D advisor. You can keep hold of what’s rightly yours, and reinvest more into your PropTech R&D. 


PropTech startups can benefit from R&D Tax Credits 

Enough about us.  

What’s more important is how R&D Tax Credits can help you, as a PropTech entrepreneur. 

Many PropTech founders overlook their eligibility to gain the game-changing capital available to them through R&D Tax Credits. 

There are multiple avenues of PropTech that allow for R&D tax relief. Here are a few examples of how the scheme translates to your sector: 

  • Virtual reality technology to digitally simulate real estate viewings; 
  • Augmented reality to display interior design and architecture; 
  • Designing and innovating smart devices for the home; 
  • Developing new ecological slimmer insulation materials for houses; 
  • Developing an existing method to create an alternative with less waste. 

As of 2020, HMRC reported that the total financial support claimed through R&D Tax Credit schemes was estimated to have reached £7.4 billion, indicating a 19% increase from last year’s total. 

Despite the huge pot of money on offer, and the rapidly increasing uptake, PropTech remains one of the sectors with the lowest volume of R&D Tax Credit applications. 

PropTech founders – your sector deserves more. It’s time to start claiming! 


File your R&D Tax Credit with Claim Capital  

Claim Capital is proud to partnered with the UK PropTech Association, and over the years we’ve gained experience in assessing and submitting R&D Tax Credit Claims specifically within the property market. 

We want to see more R&D Tax Credits land in the pockets of PropTech founders. So for UKPA gold members, we’re offering a £500 discount off your first claim. 

With no upfront costs, and a 100% success rate, there’s nothing to lose by reaching out. Arrange a free consultation with our experts to find out what you could be owed. 

Our PropTech client, Unissu, did just that – and it saved them tens of thousands. 

Unissu, the market-leader for PropTech data, got in touch with us out of concern that they’d previously been underclaiming. After reviewing their previous R&D Tax Credit claim, our experts at Claim Capital uncovered a £32,000 shortfall that their accountants had missed. 

To get the most out of your R&D Tax Credit claim, get in touch with our specialists at Claim Capital. 



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