12TH JULY, 2019

Growth Hack For Irish Businesses: Tap Into R&D Tax Credits

Businesses and start-ups across the country are missing out on a secret weapon that can broaden the base of resources to fuel growth. Revenue’s tax credits for research and development expenses, also known as R&D Tax Credits, is an effort to boost business innovation across the country.

The tax credit scheme is based on the understanding that new products and technologies are difficult to create, can take years to develop, and struggle to survive upon initial launch. Companies striving to push the boundaries of their industry are exposed to tremendous risk and lack the resources needed to sustain ongoing innovation. Since it was introduced in 2004, Revenue’s R&D Tax Credit program has been a vital source of funding for thousands of small companies and technology leaders across the country.

How do R&D tax credits work?

Any company in Ireland with qualifying R&D activities, could receive a 25% tax credit on their Corporation Tax (CT). Since the introduction of the scheme, it has become incredibly popular, with 1,506 companies claiming a total of €670 million in 2016.

Companies must be within the charge of CT in Ireland and carrying out qualifying R&D activity in the fields of science or technology. If this applies to your company, and you’re seeking an advancement in the sector through basic research, applied research or experimental development, you are likely to be able to claim a 25% tax credit on your CT, so long as you claim before 12 months after the accounting period closes. If the company has offset current and previous years’ CT liabilities, there is a credit available, paid in instalments.

According to Revenue’s official statistics, many small and medium-sized businesses are leaving money on the table. The number of companies claiming per year has been decreasing from 2013. Start-ups and innovative technology projects across the country are missing a vital source of funding, possibly because of a lack of awareness about the scheme.

R&D Tax Credit Statistics

Revenue’s 2019 report on R&D Tax Credit Statistics shows how 14,053 claims, worth more than €4bn, have been made since 2004. The vast majority of these claims come from SMEs (businesses with less than 250 employees). SMEs account for 99.7% of active enterprises in Ireland, employing 7 out of every 10 people in the business economy, but they equally are often the companies needing the most help. Interestingly, the largest number of claims came from SMEs with 11 to 49 employees, despite these ‘small companies’ accounting for only 7.7% of active enterprises, compared to ‘micro-companies’ with less than 10 employees and accounting for 90.7% of active enterprises. This shows there are many more SMEs, especially ‘micro-companies’, who could be claiming. 

Many of these small businesses are at the cutting-edge of science and technology. Ireland is transitioning away from mom-and-pop stores to an innovation economy filled with young entrepreneurs. The scale of these new innovations requires tremendous resources and support. While the Irish government’s tax credit scheme is an important catalyst, business owners and start-up entrepreneurs need to learn about and take advantage of the scheme to level the playing field with the global tech giants and multi-national companies.

Interested in knowing whether you qualify for R&D Tax Credits?

Speaking to the team of specialists at Tax Cloud today will enable you to determine whether your business matches the necessary criteria and whether any credits can be claimed for the R&D projects you have conducted. Click here to contact us today for more details.

Barrie Dowsett, ACMA, GCMA
Author Barrie Dowsett, ACMA, GCMA CEO, Tax Cloud
Latest posts
3RD APRIL, 2020 Why Are Entrepreneurs Important?
26TH MARCH, 2020 What Effect Do Recessions Have On R&D Investment?
20TH MARCH, 2020 What Are The Main Types of R&D?
12TH MARCH, 2020 What's The Difference Between Open And Closed Innovation?
5TH MARCH, 2020 How Does Team Diversity Drive Innovation?
27TH FEBRUARY, 2020 What Advantages Does Tax Cloud Offer Irish Businesses?
20TH FEBRUARY, 2020 Overcoming Barriers In Scaling Up Your Business
13TH FEBRUARY, 2020 More Irish Businesses Than Ever Are Investing In Social Media Technology
7TH FEBRUARY, 2020 Tax Cloud Ireland Updates Pricing
23RD JANUARY, 2020 Innovation 2020: What’s It All About?
16TH JANUARY, 2020 Which Sectors Grew In Ireland Last Year?
7TH JANUARY, 2020 Top 5 Recent Agricultural Inventions
19TH DECEMBER, 2019 Do I Have To Spend My R&D Tax Relief On More R&D?
12TH DECEMBER, 2019 What Goes In To Planning An Effective R&D Process?
6TH DECEMBER, 2019 5 Major Areas Of Global R&D?
28TH NOVEMBER, 2019 How Innovations In Sustainable Living Are Hitting The High Street
21ST NOVEMBER, 2019 Irish SMEs Appear To Struggle More With Rising Costs Than Their Global Competitors
15TH NOVEMBER, 2019 Innovation In Your Irish Manufacturing Business: 5 Key Areas To Focus On
6TH NOVEMBER, 2019 Small Companies And Start-ups Get R&D Credit Boost Courtesy of Budget 2020
1ST NOVEMBER, 2019 How To Attract The Ideal People For Your R&D Project
24TH OCTOBER, 2019 Plan Your R&D Tax Credit Claim To Avoid A Last-Minute Panic
16TH OCTOBER, 2019 Why Should Irish businesses Use The Tax Cloud Portal For Their R&D Tax Relief Claim?
9TH OCTOBER, 2019 How Ireland Has Innovated: The Top 10 Irish Inventions The World Now Can’t Do Without
3RD OCTOBER, 2019 How The Rise Of Technology Has Affected R&D In Ireland
26TH SEPTEMBER, 2019 How Is Research And Innovation Supported In Ireland?
19TH SEPTEMBER, 2019 How R&D Could Be The Key To Post-Brexit Opportunities In Ireland?
12TH SEPTEMBER, 2019 How Can Irish Farmers Benefit From R&D Tax Credits?
5TH SEPTEMBER, 2019 What Are The Benefits Of Accountants Working With R&D Tax Experts?
28TH AUGUST, 2019 10 Biggest Issues Facing Small Irish Businesses Today
23RD AUGUST, 2019 What Deductions And Allowances Can Be Made Regarding My Corporation Tax?
15TH AUGUST, 2019 Are Only Big Businesses Eligible For R&D Tax Credits?
8TH AUGUST, 2019 Writing An Effective R&D Tax Credit Claim: Get The Technical Narrative Right
1ST AUGUST, 2019 How Can Irish Businesses Reduce Their Corporation Tax Bill?
26TH JULY, 2019 Top 10 Great Reasons To Start A Business In Ireland
19TH JULY, 2019 How Can Irish Businesses Boost Their Cash Flow Post-Brexit
12TH JULY, 2019 Growth Hack For Irish Businesses: Tap Into R&D Tax Credits
5TH JULY, 2019 What Projects Qualify For R&D Tax Credits In The Medical Industry?
1ST JULY, 2019 Why Use An R&D Tax Claim Portal Over An R&D Advisor?
24TH JUNE, 2019 Top Tax Cloud FAQs
21ST JUNE, 2019 Does Your Software Company Qualify For R&D Tax Credits?
Popular Tags
Start your Tax Cloud claim now Discover if you qualify and ensure your R&D tax claim is maximised. Get started
Powered by Myriad Logo

Myriad Associates helps businesses maximise tax credits and secure R&D grant funds. We specialise in R&D Tax Credits, Enterprise Ireland grants.

  • Submitting R&D tax claims since 2001
  • 100% success rate
  • Over €100m claimed and counting
  • Industry leading specialists
  • In-house technical, costing and tax experts
  • Member of the Research and Development Consultative (RDCC) committee

Meet some of the team behind Tax Cloud

Barrie Dowsett Barrie Dowsett ACMA CGMA Chief Executive Officer
David Farbey David Farbey MA, FISTC, FRSA Technical Consultancy Director
Lisa Waller Lisa Waller CTA, ACCA R&D Tax Manager
Lauren Olson Lauren Olson MA, MISTC Senior Technical Consultant