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R&D relief is a very niche, highly specialised area of accounting. By using a specialist R&D tax consultancy, software companies will drastically reduce the risk of over-claiming or under-claiming.
The software industry in Ireland has gone from strength to strength over the last six decades, with IBM having first opened its offices in Dublin in 1956. Ericsson then based itself here twelve months later, with other big names like Dell, Symantec, Pilz and Hewlett Packard all following suit in the years that followed. Nowadays the country is proudly home to a whole load more, including Yahoo, Google, Amazon, Cisco, Ebay, Facebook, Citi and Mastercard.
The Republic of Ireland is indeed an extremely popular place to live and work. With its financial, political and social stability and a government that encourages business innovation, it’s an outward-looking and exciting place to be.
The reasons behind Ireland’s success are many and varied, particularly when it comes to the software industry. They include:
The Irish Republic is of course remaining in the European Union even though the UK has left, allowing free trade between itself and other member states. Additionally, the fact that it’s English speaking and in the EU is a massive plus.
Although the UK officially left the EU on the 31st January, uncertainty around trade deals and the future relationship between itself and the EU remains uncertain. Such uncertainty in any form can be unsettling to companies, with many now looking to relocate to Ireland. This will of course bring prosperity to the country over time, with more jobs being created and further opportunities for businesses to grow.
Today around 15% of Ireland’s workers come from abroad. In fact, the Republic of Ireland has - proportionally speaking - the 3rd highest international workforce amongst all European countries. As mentioned, Ireland is the only country in the Eurozone that has English as its first language, putting it at a massive advantage.
Ireland’s population is also particularly young, making it very fresh, adaptable and a big draw for some exceptional talent. Around 35% of people living in Ireland are 25 years old or under, and 50% are under 35. Technology and IT are particularly large employment sectors, with recent statistics showing that almost 10% of employees working in Dublin are software developers.
Around 80% of Irish IT specialists have third level qualifications, in comparison to 61% across the European Union. In terms of general education, Ireland also comes out top in Europe with 98% of 18 year olds still being in education.
The education system itself is particularly outstanding in Ireland too. Ranked 6th in the world, computer science and coding are currently some of the most popular subjects to study amongst pupils of secondary school age.
Ireland has an open, tolerant and inclusive attitude and this is reflected in its workforce. Many multinational companies do business here, which has served to reinforce the country’s outstanding business reputation. In fact, in 2017 Forbes ranked Ireland as the 4th best country to do business in the world.
The Irish tax system is considered to be one of the most fair and progressive ones in the developed world. Indeed, the government encourages business growth and innovation by offering companies a lower rate of Corporation Tax at 12.5%, as well as a 25% R&D Tax Credit.
Under Revenue’s new Knowledge Development Box, the Revenue also offers a preferential tax rate of 6.25% on income derived from intellectual property.
Across Ireland but particularly in Dublin, a large amount of collaboration goes on between businesses, regulatory authorities and academic institutions. Each year the Irish government invests nearly €800m in R&D particularly with regard to Software, Telecomms, Data Analytics and Machine Learning. This in itself has significantly boosted Ireland’s progress in R&D as a whole.
R&D credit is a very niche, highly specialised area of accounting. The application process itself is complex, and it may even be something your usual company accountant is unaware of. With potentially thousands of euros at stake, it’s essential that companies get their R&D tax credit claim right first time.
By using a specialist R&D tax consultancy, a company will drastically reduce the risk of over-claiming or under-claiming. Under-claiming (which is easily done) can mean that your company misses out on money it’s owed. Over-claim, and you could trigger an expensive and stressful tax investigation courtesy of the Revenue. So why take the risk?
Tax credit specialists understand how other business and tax matters work in relation to R&D Tax Credits too. For instance, how the company is structured and how key directors are remunerated, can have a significant impact on the qualifying expenditure you can apply. Well qualified R&D tax advisors such as ourselves can guide you through the application, identify your costs and help you see the bigger picture. General accountancy firms may not have this experience, which is what makes it all the more important to take expert advice.
When it comes to making your R&D claim, our highly knowledgeable, expert team will ensure that your claim is accurately compiled and fully maximised. Our extensive experience in handling R&D tax credit claims successfully has put thousands of euros into the pockets of Irish businesses across a range of industries.
Myriad Associates is made up of accountants, R&D specialists and advisors who will translate intricate tax legislation into language that’s easy to understand. Based in Dublin (as well as in the UK), Myriad Associates has a 100% record in claiming R&D tax credits and can guide you through the claims process from start to finish.
If you own or manage a software company in the Republic of Ireland, or you’d simply like to find out more about R&D Tax Credits, please do give us a call on +353 1 566 2001. Alternatively, fill out our contact form and we’ll ring you back at a time to suit you