R&D Tax Credits
What are R&D Tax Credits?
The R&D tax credit serves as a valuable incentive encouraging investment in research and development among companies in Ireland. This credit allows you to receive up to 30% of your R&D expenditure (both revenue and capital) as a tax credit or in cash, provided certain conditions are met.
Additionally, this credit complements the 12.5% corporation tax deduction at the standard rate. Eligible R&D activities span diverse fields including : Software development, engineering, food and beverage production, medical devices, pharmaceuticals, oil and gas, aerospace, agriculture and agri-food.
Who is eligible for R&D Tax Credits?
There’s a widespread misconception about Research and Development (R&D), often seen as limited to specialised teams or high-tech labs. However, many companies benefiting from R&D tax credits have eligible expenses rooted in innovation within their operations. Expenses aimed at enhancing products or services, even if projects don’t yield expected outcomes, may qualify. Any company in any industry, including Irish ones, may be eligible for R&D Tax Credits.
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​The key is engaging in development activities seeking advancements in science or technology, such as creating new products, processes, or services, or modifying existing ones.
What Type of R&D Expenditure is Claimable?
Qualifying expenditure for the R&D tax credit encompass a range of eligible costs, such as employee wages, third-party contractor expenses (particularly those contractors engaged in R&D within the European Economic Area), material costs, machinery and equipment investments, as well as overhead expenses.
This valuable tax credit can be claimed based on the eligible expenditure incurred during the fiscal accounting year in connection with your research and development endeavours.
The R&D Tax Credit Claiming Process
Preparing an R&D tax credit claim entails identifying and documenting eligible R&D activities and associated expenditures, and adhering to legislative and Revenue Guidance requirements.
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R&D Tax Solutions leading R&D Tax Credit practice has been advising businesses for over 10 years. Our team possesses the necessary tax, financial, and scientific expertise to assist companies of all sizes and sectors in preparing their claims. Utilising proven methodologies and processes, we ensure your claim is comprehensive, accurate, and audit-ready.
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​The stages of preparing an R&D tax credit claim include feasibility study, detailed claim preparation, submission to Revenue, and audit preparation/support
Does the Opportunity Expire?
The window of opportunity for R&D tax credit claims typically closes 12 months after the end of your fiscal year. For instance, if your fiscal year concludes on 31st December, you should aim to submit your claim by 31st December 2024 for activities related to your 2023 fiscal year.
To maximise your benefits, R&D Tax Solutions advises against delaying your claim submission until the deadline approaches. Instead, consider initiating the process concurrently with your CT1 filing, rather than treating it as a post-deadline amendment.
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​We are always happy to work closely with your accountant to ensure the benefit is included as part of the original CT1 filing.
