The Research & Development Tax Credit - The Professionals Guide
- Chapter 1 Research & Development Tax Credit
- Chapter 2 How the Regime Works
- 2.0 Overview
- 2.1 Entitlement to claim
- 2.2 Calculating the R&D tax credit due
- 2.2.1 What is expenditure on R&D (i.e. eligible expenditure)?
- 2.2.2 Defining a “group”
- 2.2.3 The relevant period of the group
- 2.2.4 The threshold amount and threshold group
- 2.2.5 What happens if a company is a member of a group for only a portion of the relevant period?
- 2.2.6 Calculating Qualifying Group Expenditure on R&D
- 2.2.7 Allocating qualifying group expenditure on R&D to the members of the group
- 2.3 Claiming the tax credit
- 2.4 How can the R&D tax credit be used? What’s the real benefit?
- 2.4.1 Overview
- 2.4.2 Offset against corporation tax and cash refund mechanism
- 2.4.3 Order of offsets
- 2.4.4 “Above the line treatment”
- 2.4.5 “Key Employee” reward mechanism
- 2.4.6 Transfer of a trade – carried forward R&D tax credit (s766 & s766A)
- 2.5 Takeaway points
- Chapter 3 R&D Activities
- 3.0 Overview
- 3.1 How to determine if an activity is qualifying R&D?
- 3.2 Systematic Investigative and experimental activities
- 3.3 Field of science & technology
- 3.4 Types of R&D
- 3.5 Scientific or technological advancement
- 3.5.1 The meaning of scientific or technological advancement
- 3.5.2 That you must “seek” to achieve rather than succeeding in achieving advancement
- 3.5.3 What does not constitute scientific or technical advancement?
- 3.5.4 Competent professional working in the field
- 3.6 Scientific or technological uncertainty
- 3.7 Determining when an R&D activity begins and ends
- 3.8 R&D activities – items to consider
- 3.8.1 Commercial project vs. R&D activity
- 3.8.2 Software development
- 3.8.3 Examples and case studies of eligible R&D activities within various industries
- 3.8.4 Activities that are not R&D activities
- 3.8.5 Supporting activities
- 3.9 What sort of documentation/evidence needs to be maintained?
- 3.9.1 What documentation is required?
- 3.9.2 Revenue Guidelines; records required to be maintained to satisfy the science test
- 3.9.3 Should we maintain additional documentation especially for the R&D tax credit?
- 3.9.4 What about the base year?
- 3.9.5 What happens if I don’t have documentation?
- 3.10 Conclusion
- Chapter 5 Eligible Expenditure
- 5.0 Introduction
- 5.1 Overview of eligible revenue expenditure
- 5.2 Revenue expenditure
- 5.3 Capitalised expenditure
- 5.4 Plant and machinery
- 5.4.1 Qualifying for capital allowances
- 5.4.2 Qualifying for relief under 291A
- 5.4.3 How to claim P&M expenditure?
- 5.5 Outsourced R&D Activities
- 5.6 R&D Grant Assistance
- 5.7 Pre Trading Expenditure
- 5.8 Takeaway Points
- Chapter 6 How Revenue Audit R&D Tax Credit Claims
- 6.0 Introduction
- 6.1 Is an R&D audit different to other tax audits?
- 6.2 Revenue’s Appointed Expert
- 6.3 Types of Revenue review and audit
- 6.4 Notification of Revenue review or audit
- 6.4.1 Email notification
- 6.4.2 Self review letter
- 6.4.3 The formal audit letter – “Notification of Revenue audit – R&D”
- 6.5 Audit timelines and statute of limitations
- 6.6 Practical Difficulties with R&D audits
- 6.7 Settlements with Revenue, Interest, Penalties and Publication
- 6.8 Takeaway Points
- Chapter 8 How the Irish R&D Tax Credit regime Compares to Others
- Appendices
- Appendix 1 Revenue Guidelines for Research and Development Tax Credit (December 2012)
- Appendix 2 Chartered Accountants Ireland Information Sheet on Accounting Treatment
- Appendix 3 Article from Irish Tax Review, Issue 2, 2011
- Appendix 4 Revenue Confidentiality Agreement
- Appendix 5 Revenue Panel Application
- Appendix 6 Revenue Audit Letter
- Appendix 7 Self Review Letter