Is your business engaged in research and development? Are you working on a project to achieve an advancement in science or technology? Is your company researching or developing a new process, product or service, or improving an existing one? There is significant relief available for those companies seeking to achieve a scientific or technological advancement.

The R&D Tax credit was introduced in Ireland to encourage investment in R&D by companies and is particularly important now as companies must undertake research and development to ensure they stay competitive in the global economy.

Revenue have detailed guidelines that companies need to follow when claiming R&D tax credits. Each claim is extensive and is unique to the claimant. An eligible claim requires a well-organised, thorough, and practical review of all activities and costs. We recommend you seek professional help to ensure you maximise your relief.


R&D Tax Credit claim service

At TaxAssist Consulting our team has the expertise to help you with your claim.

We can help with:

  • accessing eligibility
  • producing a strong, defendable, claim
  • ensuring you are climbing the proper entitlement
  • submitting claims to Revenue


More about R&D Tax Credits


The myths surrounding R&D Tax Credits

There are many myths circulating around R&D Tax Credits.

  1. People believe that research and development (R&D) means there is a brand-new product or process at the end of the project – this is wrong!
  2. Others believe that research and development tax relief is only available for successful projects – again this is incorrect.


The truth about R&D Tax Credits

For most SMEs, advances are in technology or an improvement to an existing product or process may be sufficient for a claim.

This relief is available for R&D activities carried out in a wide variety of areas such as agriculture and horticulture, software development, engineering, food and beverage production and more.


Are R&D Tax credits only available for large companies?

No, all companies can claim R&D credits one they meet the criteria set out by Revenue. The credits are not just for large companied and multi-national companies.


Is it worth it for my company to claim for the R&D Tax Credit?

If your company is carrying out eligible activities than it is certainly work applying for the R&D Tax Credit.

There are two R&D credits you can claim:

  1. SME R&D Tax Relief and the Research
  2. Development Expenditure Credit (RDEC).

The SME credit is calculated at 25% of eligible expenditure and is used to reduce a company's Corporation Tax (CT). On top this the RDEC credit is calculated at 12.5% and is trading deduction available for revenue expenditure, for things like salaries and equipment used in R&D.

So in effect, successful companies can claim a repayable tax credit calculated at 37.5% of the spend on R&D activities.


What are the requirements to make a claim for R&D Tax Credits?

Revenue have a number of requirements for companies when claiming R&D credits on activities:

  • There has to be a project focused on the issue to be resolved
  • There has to be an intention to achieve an advance in science or technology
  • The project must relate to the company’s trade – an existing one or one it intends to start based on the results of the R&D
  • The company has to explain how its project sought to overcome the uncertainty around the advance it wants to achieve
  • The issue has to be one that cannot be easily overcome by a professional working in that field
  • The process, product or service can still be an advance if it has been developed by another company but isn’t publicly known or available. For instance, there are many companies currently working on both electric cars and driverless cars. They will each be claiming R&D tax relief.
  • The project can research or develop a new process, product or service, or improve an existing one.


What expenses can I claim R&D Tax Credits on?

Qualifying expenditure, as outlined by Revenue include:

  • Staff costs
  • Software
  • Consumable or transformable items
  • Contracted out R&D costs (65%)
  • Externally provided workers (65%)

There are also R&D allowances which allow for full relief for qualifying capital expenditure.


When do I make the claim?

A claim needs to be name 12 months from the end of an accounting period. Often a claim is made in line with the corresponding corporation tax return deadline.


Next steps

Whether you have questions or are ready to get started with a claim, get in touch with us today via our contact form or by calling 01 854 0664. 

Our team of experienced, independent, and friendly advisers will work to understand your business to allow them to make a robust claim. We know managing taxes yourself and making claims can be difficult and time consuming which is why it pays to seek tax advice from a professional tax advisor who has supported people and businesses in your position many times before.