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The R&D Tax Credit - An innovative opportunity

Is your company a market leader and innovator? Does your company have the ability to solve your technical challenges in-house? Does your company provide bespoke solutions to your clients?

If you have answered yes to any of the above then your company should consider making a R&D Tax Credit claim.

I’m interested but what is the R&D Tax Credit? And what is it worth to me?
Current tax legislation allows companies engaged in qualifying activities claim a valuable 25% R&D Tax Credit. There are a number of ways the credit can be claimed.

For accounting periods commencing after 1 January 2009 a 25% credit may be available as follows:

  • As a current year corporation tax offset - Reduce your current year corporate tax bill
  • As a prior year carry back against corporation tax liability - Refund of prior year corporate tax
  • As a “Payable Tax Credit” (repaid in 3 instalments - where corporate tax is nil or less than the available R&D Tax Credit) – Receive a cash balancing payment from Revenue

When should I make an R&D Tax Credit claim and how do I do it?
Claims must be made within 12 months of the accounting year end i.e. companies with a year end of 31 December 2009 must file a claim before 31 December 2010.

Tell me more – what are examples of potentially qualifying activities?
The list of potentially qualifying activities is extensive. Very many potentially qualifying companies are still unaware that they could be claiming in this area. Here are some common activities that may qualify for a R&D claim. These activities will be very familiar to a wide and varied range of businesses.

Speak to our dedicated R&D Tax Group today for a confidential R&D Tax Credit review

For further information please contact
Gerry Vahey, Tax Partner Tel 01 449 6423 or email gvahey@mazars.ie

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