Minerva Innovation Group were panellists at the recent Chamber R&D finance event, highlighting the opportunities for SMEs to claim R&D Tax Relief and Cash Credits, as well as the many misconceptions stopping businesses applying.
The latter was a key part of the discussions with specialist speaker Evan Verveen and is frequently raised by the businesses Minerva Innovation Group speak to every week.
Ireland's R&D Tax Relief scheme exists to encourage businesses to continue investing in innovation and growth, but many companies are already carrying out qualifying R&D without realising it.
To help better understand the legislation and ensure your business doesn’t miss out on a valuable cash injection, here are six of the biggest myths around a government scheme designed to encourage the development and improvement of products, processes or services.
1. "We're not a research company. We just sell products or services."
Every week we hear businesses say: "We don't carry out research. We simply manufacture products, provide services or solve problems for our clients."
However, the Irish R&D Tax Relief scheme is not limited to businesses whose primary purpose is research. The legislation rewards companies that seek to overcome scientific or technological uncertainty while developing or improving products, processes or services.
Whether you are designing a more efficient manufacturing process, improving a veterinary treatment protocol, trialling sustainable farming techniques or developing bespoke software for a client, your work may involve qualifying R&D.
2. "We're too small to qualify."
Innovation is not limited to large multinational companies. In fact, many successful claims come from small and medium-sized businesses. Whether you employ five people or five hundred, if your team is investing time and resources into solving technical challenges, it is worth exploring whether you could qualify.
At Minerva Innovation Group, we generate an average cash benefit of approximately €5,000 per employee for our Irish clients. Even relatively small businesses can unlock significant value through the scheme, helping to fund future recruitment, equipment purchases and continued innovation.
3. "We're not paying Corporation Tax, so there's nothing to claim."
We regularly speak to innovative businesses that assume they must be paying Corporation Tax before they can benefit from Ireland's R&D Tax Relief scheme.
However, this is one of the most common misconceptions we encounter. Depending on a company's circumstances, the benefit can often be received as a cash payment from The Revenue Commissioners, rather than simply reducing an existing Corporation Tax liability.
This makes the scheme particularly valuable for early-stage and growing businesses that are reinvesting heavily in innovation and expansion.
Every company's tax position is different, but a lack of Corporation Tax liability should not automatically rule out an R&D claim.
4. "We didn't invent something completely new."
Many businesses assume they must create a world first to qualify. That is not the case, and we regularly see qualifying projects centred around improving existing products, processes or services.
If your business is attempting to achieve an advance beyond the current state of knowledge in your field, and there is genuine scientific or technological uncertainty involved, your work may qualify even if similar products or processes already exist elsewhere.
5. "The project didn't succeed."
Some of the best R&D projects never reach the finish line. The legislation rewards the process of attempting to resolve scientific or technological uncertainty, not simply successful outcomes. Failed prototypes, abandoned approaches and unsuccessful testing can all form part of a qualifying claim, provided a systematic development process was followed.
6. "We don't have a laboratory."
One of the biggest misconceptions is that R&D only happens in laboratories. In reality, qualifying work takes place in factories, workshops, farms, veterinary practices, construction sites and offices across Ireland every day.
Minerva Innovation Group regularly supports innovative companies across sectors including software, engineering, manufacturing, agriculture, veterinary medicine, architecture, construction and renewable energy, where qualifying R&D often takes place in day-to-day commercial environments rather than laboratories.
Expertise
Our team includes scientists, engineers, developers, medical professionals, legal professionals, and tax specialists with all science, engineering, and software graduates within technical roles holding First-Class degree classifications or Distinctions.
Even if you're unsure whether your projects qualify for R&D Tax Relief, it is never too early to get an honest assessment of your eligibility. One call could lead to a valuable cash injection that can be reinvested into recruitment, equipment, further R&D and business growth.
Minerva Innovation Group’s award-winning services include a free, no-obligation discussion with a specialist. Visit www.minervainnovation.ie, email info@minervainnovation.ie, or call +353 (0) 1 263 6279 for more information.