{"id":924,"date":"2025-11-26T09:00:58","date_gmt":"2025-11-26T09:00:58","guid":{"rendered":"https:\/\/leyton.majjane.agency\/ie\/insights\/articles\/why-rd-tax-credits-claims-need-to-keep-pace-with-innovation-investment\/"},"modified":"2026-08-18T21:50:40","modified_gmt":"2026-08-18T19:50:40","slug":"why-rd-tax-credits-claims-need-to-keep-pace-with-innovation-investment","status":"publish","type":"article","link":"https:\/\/leyton.com\/ie\/insights\/articles\/why-rd-tax-credits-claims-need-to-keep-pace-with-innovation-investment\/","title":{"rendered":"Why R&amp;D Tax Credits claims need to keep pace with innovation investment"},"content":{"rendered":"\n\n\n\n\n<p class=\"wp-block-paragraph\">R&amp;D in Ireland is predicted to rise over the next three years, but do enough businesses know of the funding they can claim from the government to support their investments?&nbsp;<\/p>\n\n\n\n<h2 id=\"h-r-amp-d-investment-in-ireland-is-set-to-rise\" class=\"wp-block-heading\">R&amp;D investment in Ireland is set to rise<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A recent survey into Ireland\u2019s innovation landscape, led by the IRDG, suggests that 71% of companies plan to boost their existing R&amp;D investment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This would carry on the trend of higher R&amp;D spending as the latest figures from <a href=\"https:\/\/www.revenue.ie\/en\/corporate\/documents\/statistics\/tax-expenditures\/r-and-d-tax-credit-statistics.pdf\">Revenue<\/a> show that the total value of R&amp;D expenditure has risen year-on-year from 2018 to 2023, reaching \u20ac5,158m in the latest year (10% up from 2022).<br><br>While the news of ongoing investment is very welcome, the survey only focuses on businesses that are already performing R&amp;D activities. It\u2019s just as important that we see growth in the overall number of companies investing in R&amp;D (which has been a lot more sluggish).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Between 2019 and 2022, the amount of companies claiming <a href=\"https:\/\/leyton.com\/ie\/rd-tax-credits\/\">R&amp;D Tax Credits<\/a> barely changed. Only in 2023 did we see an 11% rise, but it\u2019s vital that this momentum continues. Growth shouldn&#8217;t be confined to those who are already investing. We want to see more new companies claiming, as R&amp;D Tax Credits represent the best way to fund even more innovation and business expansion, which helps to drive Ireland&#8217;s overall economic growth.<\/p>\n\n\n\n<h2 id=\"h-one-third-of-innovators-are-missing-out-on-r-amp-d-support\" class=\"wp-block-heading\">One third of innovators are missing out on R&amp;D support<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While R&amp;D Tax Credits are designed to help fund innovation investment, only 64% of companies surveyed by IRDG said that they\u2019d previously claimed. In other words, roughly a third of active innovators still aren\u2019t taking advantage of the available government support.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The scheme allows companies to claim a credit or cash rebate for their eligible R&amp;D expenditure, and it is set to become more valuable than ever, as the credit rate will rise from 30% to 35% for accounting periods beginning on or after 1 January 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite this generous increase, there are still barriers preventing some from claiming that are worth examining. The clearest issue is overall awareness of the scheme, as 10% of companies surveyed said that they weren\u2019t aware that any financial support was available.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">39% cited concerns about the admin and time involved in making either R&amp;D Tax Credits claims or <a href=\"https:\/\/leyton.com\/ie\/grants\/\">R&amp;D grant<\/a> applications. 16% said that they didn\u2019t believe their work qualifies for funding. Such worries aren\u2019t uncommon, and as a result, many businesses are missing out on a valuable cash benefit to which they may otherwise be completely entitled.<\/p>\n\n\n\n<h2 id=\"h-the-importance-of-r-amp-d-incentives\" class=\"wp-block-heading\">The importance of R&amp;D incentives<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">IRDG\u2019s research pointed to the positive impact that R&amp;D incentives have on businesses in Ireland. For those who received support:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>61%\u00a0said it allowed them to\u00a0carry out more R&amp;D<\/li>\n\n\n\n<li>47%\u00a0said it\u00a0supported more employment<\/li>\n\n\n\n<li>40%\u00a0said it\u00a0encouraged greater internal investment<\/li>\n\n\n\n<li>30%\u00a0said it\u00a0enabled collaboration with third parties<\/li>\n\n\n\n<li>28%\u00a0said it\u00a0provided access to additional expertise<\/li>\n\n\n\n<li>25%\u00a0said it\u00a0facilitated export growth<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These are tangible benefits, helping businesses to invest, improve their competitiveness and grow. It\u2019s therefore so important that the reach of incentives like the R&amp;D Tax Credits scheme are as accessible as possible, especially for Irish SMEs that lack the resources of larger enterprises.<\/p>\n\n\n\n<h2 id=\"h-why-the-r-amp-d-tax-credits-scheme-needs-reform\" class=\"wp-block-heading\">Why the R&amp;D Tax Credits scheme needs reform<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">We\u2019ve already written about why we believe the R&amp;D Tax Credits scheme needs reform. To help reduce the administrative burden on innovative businesses, we feel that Revenue needs to do more to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Modernise the R&amp;D Tax Credits scheme<\/li>\n\n\n\n<li>Remove barriers to outsourcing R&amp;D projects<\/li>\n\n\n\n<li>Simplify access to R&amp;D grant funding<\/li>\n\n\n\n<li>Introduce a dedicated R&amp;D Tax Credits division within Revenue<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In the recent <a href=\"https:\/\/www.gov.ie\/en\/department-of-finance\/speeches\/statement-by-minister-donohoe-on-budget-2026\/\">Budget 2026<\/a>, Minister for Finance Pascal Donohoe announced that a \u201cResearch and Development Compass\u201d was soon to be published, which would set out the path for improving innovation funding in Ireland. We hope that this document will tackle some of the issues that we\u2019ve raised to help provide easier access for businesses to both R&amp;D Tax Credits and R&amp;D grant funding.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For Ireland to make the most of its innovation momentum, the next challenge is not just investing more in R&amp;D, it\u2019s ensuring that every business capable of innovating can access the support designed to help them succeed.<\/p>\n\n\n\n<h2 id=\"h-our-clients-success-stories\" class=\"wp-block-heading\">Our clients\u2019 success stories<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s no better way to learn about the benefits of R&amp;D Tax Credits than reading our clients\u2019 success stories:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/leyton.com\/ie\/insights\/case-study\/eliteform-manufacturing\/\">EliteForm Manufacturing<\/a><strong>: <\/strong>EliteForm had previously made R&amp;D Tax Credits claims, but their former accountant was unable to provide the same level of detail as our experts, which meant they were missing out on the full benefit. They were also concerned that a claim would raise the chances of a Revenue audit but were impressed by our focus on risk mitigation and dedication to compliance.<\/p>\n\n\n\n<h3 id=\"h-if-you-enjoyed-this-article-you-might-also-like\" class=\"wp-block-heading\">If you enjoyed this article, you might also like:<\/h3>\n\n\n\n\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/leyton.com\/ie\/insights\/articles\/budget-2026-everything-you-need-to-know-about-rd-tax-credits-changes-and-other-key-updates\/\">Budget 2026: Everything you need to know about R&amp;D Tax Credits changes and other key updates<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/leyton.com\/ie\/insights\/articles\/irish-rd-tax-credit-statistics\/\">Irish R&amp;D Tax Credit Statistics<\/a><\/li>\n<\/ul>\n\n\n\n\n","protected":false},"excerpt":{"rendered":"<p>R&amp;D in Ireland is predicted to rise over the next three years, but do enough businesses know of the funding they can claim from the government to support their investments?&nbsp; R&amp;D investment in Ireland is set to rise A recent survey into Ireland\u2019s innovation landscape, led by the IRDG, suggests that 71% of companies plan [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1033,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[99],"tags":[109,179,101],"expertise":[171],"class_list":["post-924","article","type-article","status-publish","format-standard","has-post-thumbnail","hentry","category-rd-tax-credits-en","tag-innovation-en","tag-new-en","tag-rd-tax-credits-en","expertise-rd-tax-credits"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.1 (Yoast SEO v28.1) - 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