1ST JULY, 2020

R&D Tax Credits for Irish Software companies

One thing our clients know is that the R&D Tax Credits scheme is generous. It’s not a new one either, having been launched in the early 2000s - but sadly many Irish software companies are still missing out. This can be for all sorts of reasons; some simply don’t realise this lucrative government tax incentive exists or don’t know their project is eligible. Others worry about the time and resource commitment or simply don’t know where to start.

But the fact is that with R&D costs attracting as much as €37.50 for every €100 of R&D expenditure, Irish software companies that don’t claim can be missing out on some serious cash. You can find out more about the scheme, including which companies and costs are eligible and how to apply, on our R&D Tax Credits page.

The extra good news is that R&D Tax Credits can be claimed for a huge variety of innovative software-related projects. These include:

1. Data storage and analytics

The sheer amount of information that software companies can store and have access to is growing fast. While there’s a strong pull towards having the most sophisticated methods for analysing data in real time to gain detailed insights, advanced algorithms and other pieces of data science are emerging too. These enable companies to design predictive systems that increase their operation’s efficiency. Apps are also being devised to solve the most complicated problems across various industries, involving advanced analytics and new processes that make the most of big data.

2. Cloud based services

Cloud computing is becoming increasingly familiar in our everyday lives and it brings with it a whole raft of uses and benefits. These include being able to conveniently access networks on demand, as well as to shared pools of configurable computer networks, servers, storage, applications, etc. They don’t require any particular skill to understand and there’s minimal management involved with them.

One of cloud computing’s biggest advantages is that it’s always available, from any location, and is constantly ready to deliver. It can facilitate numerous functions in our daily lives, not just for individuals and businesses but governments too.

3. Software related to the Internet of Things

In a nutshell, the Internet of Things refers to any device that can connect to the internet and to other connected devices. So in effect, the IoT is a vast network of people and devices that are all interwoven, all sharing data about the user and the world around them.

It sounds pretty futuristic but actually the IoT has been around as a concept for several years now, it’s just not something many of us have heard of. But IoT connected devices might include your Hive controller that connects your smart phone to your heating system, or wearable fitness devices that track how far you’ve run and what your heart rate is. As time goes on we’ll see more and more examples, particularly with regard to things like self-driving vehicles.

Any objects or devices that contain a built in sensor can be connected to an Internet of Things platform. This then integrates data from the different devices before analysing and sharing the most valuable information with applications designed for a specific need.

IoT software can be incredibly powerful, intelligent enough to decide which pieces of information are valuable and which aren’t. Such data once gathered and analysed can be used in detecting patterns, or to make recommendations. They can also see potential problems before they have a chance to develop.

4. Fintech software

In general terms, the word “fintech” describes any company that uses the internet, cloud services, software technology or mobile devices connect to, or carry out, financial services. A key theme around fintech is it must be highly secure but easy to use, allowing customers to safely and simply connect with their finances using technology.

Fintech as an industry encompasses all sorts of financial services technology. It describes any company that administers financial services through software or other technology, from cryptocurrency to mobile banking apps.

5. Software relating to Blockchain

If you know anything at all about cryptocurrency such as Bitcoin, then the blockchain concept probably won’t be entirely alien to you.

Essentially, "blockchain technology" is publicly accessible ledger which is totally transparent and which allows people to securely transfer units of value to somebody else. This is achieved using proof of work methods and public key encryption.

The technology is completely decentralised, meaning no government, bank or corporation has any rights or jurisdiction over it. In fact, it’s this decentralisation that makes blockchain more secure and more trustworthy.

So why use Tax Cloud?

All of the above types of innovation could easily attract R&D Tax Credits. Although the R&D Tax Credits scheme has been around a long time and seems fairly straight-forward, the fact is that applying for the credit is not always easy. Legislation around what can be claimed for and how to account for your costs is forever changing, and there are many grey areas too. This makes it really easy to under-claim (meaning you miss out on money you’re rightfully owed) or over-claim (potentially putting you in very hot water with Revenue). So don’t take the risk!

The R&D tax experts at Myriad Associates specifically created the Tax Cloud portal to save you hassle, money and time. Just like your business it’s constantly evolving and updating, making it incredibly accurate and easy to use.

Our clients find the Tax Cloud portal most beneficial because it offers:

Real-time expert support

Although it’s a self-service tool, our team of R&D tax specialists and accountants are on hand every step of the way if you need us. It’s all done remotely via phone or video call at a time to suit you.

Xero integration

If your company uses the Xero accounting software then it will integrate with Tax Cloud making it even quicker and easier to claim.

No up-front fees

It’s free to sign up to the Tax Cloud portal and you only pay once you’ve made a successful claim.

Get your R&D Tax Credits claim right first time

Try the Tax Cloud portal for businesses today or call our Dublin-based team on +353 1 566 2001. Alternatively please do send us a message and we'll give you a call back to discuss your requirements.

Barrie Dowsett, ACMA, GCMA
Author Barrie Dowsett, ACMA, GCMA CEO, Tax Cloud
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Myriad Associates are the creators of Tax Cloud, we help enterprises navigate, apply and secure tax incentives and grants. We specialise in R&D Tax Credits, Enterprise Ireland grants, Horizons Europe grants, and the Digital Games Tax Credit

  • Submitting R&D tax claims since 2017
  • Strong track record delivering R&D tax credit claims
  • Over €10m claimed and counting
  • Industry leading specialists
  • We employ technical, costing and tax experts
  • Confident of delivering value to our clients, we offer our R&D tax services on a success fee-only basis.

Meet some of the team behind Tax Cloud

Barrie Dowsett Barrie Dowsett ACMA CGMA Chief Executive Officer
Jillian Chambers Jillian Chambers Technical Analyst/Writer
Lauren Olson Lauren Olson Technical Analyst Manager
Rabia Mohammad Rabia Mohammad Corporate Tax Associate