A recent survey has found that only 6% of SME clients are claiming R&D tax credits. However many more SME’s are actually carrying out R&D activities. The low uptake is due to a lack of awareness on a number of fronts:
How much is the credit worth to your business?
Put simply, €25 for every €100 spent on R&D activity, subject to certain conditions. The eligible expenses include direct R&D costs and an allocation of overhead. The credit can be used to reduce corporation tax liabilities and from 2009 onwards, a cash refund can be claimed over 3 years, subject to certain conditions.
Is your business eligible?
R&D is not just carried on in a laboratory setting – some or all research and development is carried out in a production or manufacturing environment. If you carry out “shop floor” R&D, your business could be eligible for the credit.
We have submitted R&D credit claims for a significant number of clients since the credit was introduced in 2004 and have had 100% success in securing credits on R&D projects in a diverse range of sectors including Manufacturing, Software, Engineering, Medical devices and Food science .
How to substantiate a claim
Certain documentation must be retained on file to substantiate a claim, including evidence of the scientific or technological advancement sought or uncertainty involved along with the systematic and experimental manner in which the activities were carried on.
Please contact Maura Duffy for further information.