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- RCK Partners,
Arthur Cox,
Ten Earlsfort Terrace,
Dublin 2,
D02 T380,
Ireland.
© 2024 RCK Partners - Company House No: 12396021
Research and Development (R&D) tax relief is a government incentive that can reduce a company's tax liability or be received as a cash benefit. It is designed to encourage innovation and reward companies undertaking R&D activities.
R&D Tax Credits were introduced in 2004 by the Revenue Commissioners, the body overseeing ROI Tax and Customs, who administer the R&D tax credits initiative.
The scheme aims to provide valuable financial assistance to eligible companies fostering growth, and ultimately advancing their research and development via tax relief, or a cash lump sum.
Revenue considers R&D to be being carried out if you are a company:
When an employee spends an identified proportion of their time on R&D projects, this then qualifies as an R&D cost: Gross salaries, bonuses, employers PRSI, health insurance, holiday entitlements and employers pension contributions are eligible.
Consultants included in staff costs if they:
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Any resources utilised throughout your business's R&D process ‘in the carrying on’ of eligible R&D projects.
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Eligible computer software costs qualify for R&D tax relief and can be included in the claim.
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If you outsource part of your R&D to external contractors you can claim a proportion of the cost in your R&D tax relief claim if:
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Subject to qualifying conditions, tax relief is available for:
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For example electricity consumed in the R&D process, and rent, if the nature of the rented space or facility if it has been integral to the carrying on of the R&D activity itself.
Look at eligible R&D tax relief costs within some of the industries we support, and some case studies where we have helped companies claim R&D tax credits.
The case study examples per
If your company and its projects meet the criteria below, you may qualify for R&D tax relief.
To claim R&D tax credits, a company must satisfy two essential tests. First, that the work constitutes as qualifying R&D activity (“Science Test”). Second, that the costs incurred throughout qualifying activity have been properly tracked and accounted for (“Accounting Test”).
To qualify for R&D you must be able to answer the following questions:
Does your company claim corporation tax in Ireland?
Has your project sought to develop something new where previously there was no available solution?
Did you encounter scientific or technological uncertainty during the project and was the solution difficult to create?
Meet and greet with technical consultants. Consultant allocation based on the company's industry and the consultants' qualifications and experience.
Determine the work that has taken place that is new and innovative for R&D tax purposes
General eligibility check against the R&D criteria and legislation.
In-depth discussions with client’s key technical managers to determine qualifying projects and collate project titles for claim basis.
Pre-filing notification prepared (if relevant) for submission at least 90 days prior to the client filing their CT1.
Due diligence check for scientific or technical knowledge/ experience.
Check for availability of records to satisfy both the science and financial tests.
Discuss eligible potential costs and review payroll records and financial ledgers to assess the availability of sufficient supporting documentation to corroborate the technical analysis.
Consolidation of technical and financial analysis within a report to underpin the R&D tax relief claim.
Compliance review takes place to validate the report against Revenue’s guidelines by the in-house expert team at RCK.
The report is sent to the client for review and authorisation, to confirm that the claim is representative of activities undertaken by the company. This is an opportunity for final validation.
Template prepared for Client’s tax agent to submit online with Revenue.
A completed audit file is signed off as substantive evidence of tax claim and held by RCK to be submitted to Irish Revenue if requested
Regular meetings will be held between the R&D agent and the company’s Tax/Finance team to keep all relevant stakeholders informed on the status of the claim.
Check-ins throughout the year to guide record keeping in advance of new claim period.
*This process is flexible and can be adapted based on a client's preferences as to their involvement within the process.
Pre-notification requirement: Companies that have not submitted an R&D tax credit claim in any of the previous three accounting periods are required to file a pre-filing notification form. This form must be submitted at least 90 days before the filing of the CT1 tax return.
The R&D tax credit scheme sees a benefit of 30% for all relevant qualifying expenditure (25% pre-January ‘24). The R&D tax credit is a fully payable credit, paid out in three fixed instalments:
The threshold for the first-year payment has been steadily increased each year over the past three years.
If your company’s claim is under the threshold, the full benefit will be realised in the first year.
My thanks to George from RCK Partners - he quickly identified our needs, offered and solution and then managed the delivery - first class communication all the way.
CEO
We have worked with RCK Chartered Tax Advisors for a few years now, and their service continues to be nothing short of outstanding. Their support with our corporate tax credits has been invaluable, and the process is always handled with professionalism, clarity, and genuine care. A special shout out to Harrison Jones, Senior Associate Manager, who has been exceptional throughout. His attention to detail, responsiveness, and deep expertise have made what could have been a complex process feel smooth and stress-free. RCK have become a trusted partner for us now, and we wouldn't hesitate to recommend them to any business looking for reliable and knowledgeable tax advisors.
Managing Director - TPWT
Very professional (and friendly). Made the claiming process exceptionally smooth. If you are looking for high confidence in your claim and minimal disruption to your company, look no further. Very impressed.
Director - Impact Surgical
The RCK team have been top draw. Highly professional and reliable, got the job done quickly. Highly recommend.
CEO & Co-founder at Hyper
I engaged RCK for several of my clients and there were all extremely happy with their services and the results that the achieved. I would be more than happy to recommend their company.
Bookkeeper: CAG Housing & Development Limited
During the early stages of our engagement with you, our expert consultants and compliance team will offer a free, no-obligation review of potential R&D tax claim projects. If you have previously filed R&D tax claims, we can review them to ensure your claim is accurately calculated, fully aligns with Revenue’s updated guidance, and is compliant with the relevant tax legislation.
ContactWe would be happy to help you, please get in touch with any queries by using our contact form. We’ll get back to you within 24 hours.