In its response to the
Public Consultation on the R&D Tax Credit and Knowledge Development Box, CCAB-I noted the complexity experienced by SMEs in particular in claiming both reliefs. Two key areas identified by the CCAB-I where change would greatly improve the attractiveness and accessibility of the R&D tax credit are:
• From an international perspective, making the R&D tax credit fully refundable in the year it arises regardless of whether there is insufficient corporation tax liability in the current or preceding accounting year. This would be a cash-flow rather than a cost issue for the Exchequer.
• From a local perspective, simplifying the rules for SMEs engaging in R&D activities. Presently, many SMEs are discouraged from claiming the R&D tax credit due to complex and onerous compliance requirements.
In May 2022, the CCAB-I conducted a survey of members working in practice and industry with professional experience claiming the R&D tax credit. One of the key findings of our survey is the call for simplified documentary requirements for SMEs as part of a broader simplification of the regime for SMEs. In particular, the CCAB-I is of the view that the requirements set by Revenue both in terms of scientific merit and documentation are not appropriate for SMEs.
In its response to the Public Consultation on the R&D Tax Credit and Knowledge Development Box, CCAB-I noted the complexity experienced by SMEs in particular in claiming both reliefs. Two key areas identified by the CCAB-I where change would greatly improve the attractiveness and accessibility of the R&D tax credit are:
• From an international perspective, making the R&D tax credit fully refundable in the year it arises regardless of whether there is insufficient corporation tax liability in the current or preceding accounting year. This would be a cash-flow rather than a cost issue for the Exchequer.
• From a local perspective, simplifying the rules for SMEs engaging in R&D activities. Presently, many SMEs are discouraged from claiming the R&D tax credit due to complex and onerous compliance requirements.
In May 2022, the CCAB-I conducted a survey of members working in practice and industry with professional experience claiming the R&D tax credit. One of the key findings of our survey is the call for simplified documentary requirements for SMEs as part of a broader simplification of the regime for SMEs. In particular, the CCAB-I is of the view that the requirements set by Revenue both in terms of scientific merit and documentation are not appropriate for SMEs.
The submission was covered by the
Sunday Independent Business.