Budget 2024 brings changes that could significantly benefit an enterprise, particularly with Research and Development (R&D) tax credits.
Increasing R&D Tax Credits
One of the standout measures announced in Budget 2024 is the increase in the R&D tax credit from 25% to 30%. This move is poised to make the R&D regime more attractive for businesses. Now is the perfect time to explore the possibilities this enhanced credit could unlock for your business.
Doubling the Initial-Year Payment
For businesses contemplating R&D activities, the doubling of the initial-year payment threshold from €25,000 to €50,000 is a welcome change. Statistics from 2021 reveal that 65% of claimants were benefiting from R&D tax credits up to €100,000. This alteration promises a significant cash flow advantage, offering a potential boost for businesses embarking on innovative ventures.
Pre-Notification Requirement
Budget 2024 introduces a pre-notification requirement for R&D tax credit claims to streamline the claims process. If a business is considering its first claim or has experienced more than a three-year gap since the last claim, a written notification to Revenue is now mandatory. Key details such as company information, R&D activities description, employee numbers and R&D expenditure must be provided. Drawing parallels with a similar system in the UK, the operational details and potential consequences for non-compliance in the Irish regime are yet to be fully revealed.
Seize the Opportunity
The Irish R&D tax credit regime, now in its 20th year, continues to be a cornerstone of Ireland’s corporate tax landscape. Budget 2024’s amendments build on positive changes from the previous year, transforming the R&D tax credit regime into a fully payable credit system. These changes present a prime opportunity for businesses to thrive in the R&D landscape.
With a team of experienced professionals, we specialise in navigating the intricacies of R&D and other tax regulations to ensure a business maximises the benefits available. Our expertise extends to understanding the nuances of Budget 2024 and translating them into actionable insights for your specific circumstances.
Contact us today if assistance is needed – 021 4310266 or pm@parfreymurphy.ie