Small medium enterprises (SMEs) R&D Incentives practice 

Because claiming an R&D tax credit is not a “one size fits all” process, we have a dedicated small and medium-sized enterprises (SME) team to work with our SME clients. We understand that R&D is often undertaken quite differently in different types and sizes of organisations.

 

For many of our SME clients, R&D is something they do alongside their day-to-day activities rather than in a separate, dedicated department. Therefore, one of their biggest challenges when claiming the credit is knowing where to draw the line between everyday commercial activity and qualifying R&D.

 

Our dedicated advisers have the experience and knowledge to help SMEs claim their proper entitlement and submit compliant R&D tax credit claims.

SME case studies

Software

Software development start-up

 

Cathal runs a software development start-up company that operates from a small office in Dublin city centre. All of the company’s resources are dedicated to the development of a promising new cloud-based system, so cash is tight at the moment. The race is on to sufficiently develop the first version of the product to enable it to be released to the market as soon as possible so that Cathal’s company can start earning some revenue.

 

KPMG worked with Cathal to claim an R&D tax credit for the previous year’s R&D spend, and shortly thereafter his company received the first of three cash refund instalments worth €26,000 each.

 

This refund is very significant for Cathal’s company and will be invested in hiring an additional software developer to enable Cathal to get the product to market faster.

 

KPMG works with people like Cathal everyday to help them prepare audit-ready claims and realise the full benefit of the R&D tax credit incentive.

 

Engineering

Engineering R&D

 

Gearóid is the MD of an engineering company in the midlands that develops bespoke high tech automation equipment. The company employs 55 people, amongst them a number of engineers that are involved in the design and development of prototype machines and process development within the factory.

 

Gearóid’s company is not paying corporation tax at the moment, so he didn’t think his company would be entitled to claim an R&D tax credit.

 

KPMG spoke with Gearóid and his head engineer about how the credit works and discussed their development activities to determine whether there may be scope to claim a credit.

 

With our assistance, Gearóid realised that he could claim up to €95,000 worth of credits for last year’s development activities. We worked closely with Gearóid, his accountant and his head engineer to identify and document three qualifying R&D projects.

 

Gearóid’s company claimed a credit of approximately €95,000 for the previous year’s activities, which they will now receive in three instalments. Gearóid plans to use this cash to employ another engineer to allow the company to expand their product offering. 

 

Agribusiness

Agribusiness R&D

 

Maeve is the CEO of a company involved in the production of frozen ready meals for the Irish and UK markets. The company is involved in new product development (NPD) and process development to enable the high speed production of the product. Maeve had heard about the R&D tax credit but didn’t think it was available for companies like hers.

 

KPMG spoke with Maeve, her NPD manager and head engineer to determine whether any of the activities they carry out might be eligible for the purposes of the credit. We discovered that there could be significant potential with respect to the development of the high speed production line.

 

After this free initial consultation, Maeve decided to work with us to assist her in making a claim for the credit.

 

We helped Maeve claim a refund of approximately €75,000 for R&D tax credits relating to the previous year’s process development activities. Maeve intends to reinvest this refund into the further development of the production lines in the factory to enable the company to achieve higher yields in the future.