Tax consultancy announces €500,000 investment in Dublin office

Momentum Tax Group to create three new jobs as part of expansion into Ireland

A County Down tax consultancy has announced a €500,000 investment in a new Dublin city centre office and up to three new staff members as part of its commitment to supporting Ireland’s SMEs.

The Momentum Tax Group announced its Ireland expansion as the latest figures from Revenue reveal that Irish companies have claimed over €1.1bn in R&D Tax Relief with experts predicting that more than three quarters will go to large businesses.

The recently released provisional statistics for 2022 also reveal claims have been lodged by over 1,551 companies across Ireland. 

With processing of returns continuing, these figures may fluctuate but when the final tally is revealed, experts predict a similar picture to the previous year when 77% of claims came from large companies (250 employees and over) and smaller businesses accounted for just 23%. 

Tom Verner, Managing Director of the Momentum Tax Group said Ireland’s SMEs need support, to help the country become a global economic powerhouse in technology.

He said: “The Government’s Impact 2030 strategy seeks to put the full spectrum of research, development and innovation at the heart of addressing some of the country’s biggest challenges.

“To support this strategy, the Government has made some headline changes to the R&D Tax Relief scheme such as increasing the rate from 25% to 30%.

“Despite the incentives, it’s clear SMEs are still not availing of tax credits in sufficient numbers, while the larger companies, who have the resources to devote to making claims for their qualifying R&D expenditure are.

“If the Government is to realise its ambitions and make Ireland an R&D powerhouse, then more needs to be done to encourage smaller businesses to be even more innovative and to claim for the work they are doing.”

The tax expert said SMEs report a number of barriers when it comes to compiling tax credit claims, but the two biggest are the complexity of putting a claim together and knowing what does or doesn’t qualify.

Mr Verner also said lack of awareness of the scheme and the time needed to submit a claim are also challenges facing smaller businesses.

He said: “The finance generated by R&D Tax Relief can fuel further R&D work, create employment and in some cases secure the future of struggling firms.

“SMEs need support to navigate the claims process. We often find many small businesses are carrying out qualifying work but don’t have the understanding or means to prepare a claim.

“Smaller businesses are the backbone of the Irish economy, and this sector will play a major role in addressing our society’s big challenges. 

“The Momentum Tax Group, which already has a number of Irish clients, stands ready to help Ireland’s SMEs save time and money by identifying, analysing and optimising R&D opportunities.” 

From January 1, 2024, Revenue increased the R&D Tax Relief rate from 25% to 30% under the Finance (No.2) Act 2023. It means that a 30% tax credit is now applied to the full amount of qualifying R&D spend.

The credit is paid in three instalments with 50% in the first year, 30% in year two and 20% in the third year. Although, under the Act, companies can now claim the first €50,000, doubled from €25,000, as payable in year one.

Companies can opt to have the instalments paid by Revenue in each year or, have them viewed as a tax overpayment to offset liabilities such as corporation tax.

Founded in 2009, the Momentum Tax Group has a strong track record of working with businesses across multiple sectors in Republic of Ireland, Northern Ireland and other parts of the UK. The consultancy, which has a headquarters in Bangor, also partners with a number of Irish accountants in helping identify and prepare their clients R&D Tax Relief claims.

To learn more about R&D Tax Relief available to companies and to calculate how much you could receive visit https://www.momentumtaxgroup.ie/rd-tax-relief