R&D (research & development) TAX CREDIT - UP TO 30% BACK

Money spent by a company on research and development activities may qualify for the R&D Tax Credit. The credit is calculated at 25% of qualifying expenditure and is used to reduce a company’s Corporation Tax (CT). Where a company has offset current and previous years’ CT liabilities, it may apply for a credit payable in instalments. 

A company may qualify for the R&D Tax Credit if:

• it is within the charge of CT in Ireland
• it carries out qualifying R&D activities in Ireland or the European Economic Area (EEA)
• the expenditure does not qualify for a tax deduction in another country.  

Advances in the fields of Science or Technology, (Innovation) within your business may qualify as R&D and it is a wider ‘catch all’ than you think.

The R&D activities must be carried out in a planned & logical sequence and be fully documented at each stage.

There must be uncertainty before each stage and again this uncertainty much be documented.

The 25% tax credit has recently been increased to 30% for SME’s but the tax credit is linked to your payroll taxes paid in the same year, which is logical from a Revenue & job creation point of view.

RMcH states: if you think you maybe carrying out R&D activities within your business please call us and we can do a preliminary assessment. Then we can  assist with the documentation phase (science tests & accounting tests) set up, we have a very tailored package in this regard. It is an excellent tax credit (free money) if you qualify.