R&D is one of your largest costs as you grow. Significant cash R&D refunds allow you to stretch your runway, scale your headcount or reduce your funding requirements. R&D tax credits help you stay competitive in a global market.
Success rate over 8 years
Total claimed to-date
If we don't make a successful claim, you don't pay a penny.
In-house experts who know how to maximise your claim.
Respected advisor to our many multi-service and stand-alone R&D clients.
Currently around 700 submissions in the tech space per year, valued at €120M. Tax refunded per company per year approx €170k. Startups are historically poor at claiming this relief, with a significant number of companies eligible but not claiming.
With Covid-19 upon us, now is the time to claim.
We’ll get a broad understanding of your eligible projects and discuss which projects or sub-projects will satisfy Revenue criteria as being Research and Development. Based on these eligible projects we discuss what operating and capital expenditure Revenue allow. We will then make an overall assessment of the likely refunds possible.
We explain each step in the process and once you are happy to proceed we all sign our R&D engagement letter.
We complete all Revenue returns and Revenue’s required support pack.
This is an essential part of the claim process and one which can de-rail refunds if it is not completed to the highest standards. We will identify the core technological uncertainties and advances that lead to qualifying activity and also the phases of the development life-cycle.
Our R&D pack will set out both the detailed accounting and scientific tests, along with the context of the development to support the claim.
We follow your claim and ensure you receive your credit or cash refund promptly.
Legislation and Revenue guidelines are not entirely in sync. We’ll ensure you avoid the pitfalls as we know precisely the rules, regulations and how best to maximise your claim. Because your claim may be picked for an Audit Aspect Query our R&D pack is completed to the highest standards to maximise the likelihood of a swift assessment and approval. Should you be chosen for a full Revenue Audit, we will oversee the Audit process until conclusion at no additional costs.
R&D tax credits provide an essential source of non-repayable / non-diluting funding for many growth businesses where cash is so necessary.
R&D tax credits help encourage businesses to invest and re-invest in innovation in order to achieve long term success
R&D tax credits encourage & attract employers to create and grow employment in Ireland.
R&D tax credits help put Ireland at the forefront of R&D and innovation across the globe.
Profitpal has been a true, high performing partner for NewsWhip in all of our accounting and tax needs, especially in complex R&D tax credits.
Paul Quigley – CEO
Tax Legislation defines Research and Development in Section 766 TCA 97 as follows
Research and development activities mean systematic, investigative or experimental activities in a field of science or technology, being one or more of the following—
(i)basic research, namely, experimental or theoretical work undertaken primarily to acquire new scientific or technical knowledge without a specific practical application in view,
(ii)applied research, namely, work undertaken in order to gain scientific or technical knowledge and directed towards a specific practical application, or
(iii)experimental development, namely, work undertaken which draws on scientific or technical knowledge or practical experience for the purpose of achieving technological advancement and which is directed at producing new, or improving existing, materials, products, devices, processes, systems or services including incremental improvements thereto: but activities will not be research and development activities unless they, (I)seek to achieve scientific or technological advancement, and (II)involve the resolution of scientific or technological uncertainty;
Revenue interprets legislation and issues guidance around what they feel is the appropriate classification of R&D, and additionally what costs, rules and regulations apply. Revenue’s interpretation of R&D in the context of Software development is as follows.
Revenue’s description of Software Development
The OECD Frascati Manual states “for software development to be classified as R&D its completion must be dependent on the development of a scientific and/or technical advance and the aim of the project must be the resolution of a scientific and/or technical uncertainty on a systematic basis.”
Advances and Resolution of Uncertainty: Software development is no different from any other industry in that it is essential that claimant companies keep aware of developments in their field to ensure that activity for which the credit is claimed is directed at genuine advances.
Subject to that caveat, scientific or technological uncertainty may arise at various points throughout a development life-cycle including:
Within a typical software development cycle, there will also be features that do not constitute qualifying R&D activity such as:
It is important for claimant companies to identify not only those developments that result from qualifying activity but also the phases of the software development life-cycle that are qualifying activities.
In Short – Yes, but not all development within an Agile development process can be claimed as R&D.
While software development methodologies continue to evolve and are often highly iterative in nature, they continue to contain certain key elements such as design, build and test. Qualifying activity must be systematic in nature as well as achieving advances.
Agile development methodologies such as Scrum and similar techniques, while not exhibiting the linear nature of a traditional software lifecycle, are systematic in nature.
In agile development methodologies, qualifying and non-qualifying activity may take place simultaneously in a manner that makes them more difficult to separate. In these circumstances, project managers should apportion the staffing and other costs associated with each element of development in a manner that appropriately reflects the balance of effort expended on qualifying and non-qualifying activity
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