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Latest figures show fall in Research and Development Tax Credit claims

Recently published R&D Tax Credit statistics have revealed a reduction in both the number of companies claiming the tax credit and the total amount being claimed. The number of claimant companies fell from 1,535 in 2015 to 1,506 in 2016. There was a corresponding decrease in the Total Exchequer Cost from its peak of €708m in 2015 to €670m in 2016. Table 1 below shows the Total Exchequer Cost and Number of Companies claiming the tax credit since its introduction in 2004.

Some other interesting findings include:

  • 78% (€523m) of the 2016 R&D Tax Credits were claimed by 125 large companies (> 250 employees). Table 2 below shows a breakdown of the 2016 R&D Tax Credit by size (based on employee numbers) of the claimant.

 

  • In 2016, 61 companies claimed a R&D Tax Credit of more than €1,000,000. However, the majority of claims (1,070 of the 1,506) were for less than €100,000. Table 3 below shows a breakdown of the 2016 R&D Tax Credit by value of credit used.

 

  • 64% (or €434m) of the total R&D Tax Credits claimed in 2016 were used to offset corporation tax in that accounting period (as opposed to being claimed as payable tax credits). This represents a significant increase from 2015 when 49% (€349m) was used to offset that year’s corporation tax liabilities.

 

 

Table 1. R&D Tax Credit – Total Exchequer Cost/Number of Companies

Year

Total Exchequer Cost (€m)

Number of Companies

2004

71

73

2005

65

135

2006

75

141

2007

166

479

2008

146

582

2009

216

900

2010

224

1,172

2011

261

1,409

2012

282

1,543

2013

421

1,576

2014

553

1,570

2015

708

1,535

2016

670

1,506

 

 

Table 2. Breakdown of 2016 R&D Tax Credit by size (based on employee numbers) of the claimant

Number of Employees

Claimants

Cost of R&D Tax Credit (€m)

Less than 10

470

38

11 to 49

550

48

50 to 249

334

61

250+

152

523

Total

1,506

670

 

 

Table 3. Breakdown of 2016 R&D Credit by value of credit used

Value of Credit Used

Number of Companies

€1 to €10,000

284

€10,001 to €100,000

786

€100,001 to €200,000

207

€200,001 to €300,000

71

€300,001 to €400,000

24

€400,001 to €500,000

24

€500,001 to €1,000,000

49

€1,000,000+

61

Total

1,506

About Us

SciMet R&D is the leading, Irish owned, independent R&D Tax Credit consultancy. The company was founded on a simple principle – to consistently deliver exceptional service and value to R&D performing companies in claiming their full and proper R&D Tax Credit entitlement.

We achieve this by delivering the perfect blend of science, technology, tax and accounting expertise. The R&D Tax Credit is unique in that it combines a science test with an accounting test. SciMet R&D is unique in the Irish market in the value we bring to our clients in meeting both tests.

At SciMet R&D we are truly passionate about science and technology. It motivates us to be able to play a part in the exciting research and development being carried out by our clients.  Our tailor-made R&D Tax Credit services deliver efficiencies, robustness and cost effectiveness that facilitate our clients in doing what they do best – innovate.

Our Address: Unit 3, Cova, Trafalgar Road, Greystones, Co. Wicklow