Leyton International

R&D Tax Credit

The R&D Tax Credit scheme was first introduced by the Finance Act 2004. Significant changes have been made to enhance the tax credit since its introduction. The claim environment has also changed as evidenced by a notable increase in the level of Revenue scrutiny.


A 25% R&D tax credit is available for companies carrying out qualifying R&D activities in Ireland.

  • The credit can be claimed on an incremental basis, relative to the base year (2003).

  • For accounting periods commencing after 1 January 2012, the base year is void in
    calculating the tax credit on the first €100,000 of R&D expenditure.

  • All claims must be submitted within 12 months from the end of the accounting period.

  • The R&D Tax Credit is available to offset against corporation tax (CT).  This is in addition
    to the 12.5% corporation tax deduction at the standard rate.

  • Companies that are not in a CT paying position, (e.g. start ups or loss making
    companies) can claim a cash refund.

  • The cash refund is payable over a period of 33 months (subject to certain criteria).

  • The R&D Tax Credit must be prepared on a group basis.

  • The R&D activities must be carried out by a company in the European Economic Area (EEA)

  • Qualifying expenditure must be net of any grants which relate to the R&D activities being
    carried out.

 

Despite an increased awareness of the R&D Tax Credit among Irish companies, many are still not claiming and/or optimising their claim. Often this is due to the company failing to recognise the qualifying R&D activities it is carrying out.

Leyton are an essential partner for your R&D Tax Credit claim. At Leyton we recognise how valuable our clients’ time is, particularly the time of R&D personnel within the company. This is why our team of highly experienced scientific and tax consultants work closely with each company to implement a claim process that works for them.  There will no longer be a requirement for your R&D staff to complete lengthy technical project descriptions or questionnaires.