As mentioned in some of our previous articles, there are straight forward “low hanging fruit” R&D work that can be identified and analyzed by consultants, this includes reviewing your company’s project lists, due diligence, conducting interviews with individuals, gathering information and documentation, formulating technical narratives and drafting the technical reports. In addition, the consultant prepares and/or reviews the company’s expenditure to ensure that the allocation of costs represent the eligible technical activities (Science Test), this is in parallel with assisting and defending the R&D claims in case of a review by Revenue. These factors alone may already be a good reason to consider selecting an R&D Tax Credit service provider, however there are even more reasons.
Below we have provided an example of how a technical consultant’s involvement improves the R&D Tax Credit claim preparation process and result in a significant claim increase. We refer to these as “high hanging fruit” as it takes an industry expert in the field of science and technology and in R&D to identify and determine such “high hanging fruit”.
Example | Pharma Industry
A company had prepared a large commercial launch of a product, while testing its properties. A short time before the planned launch, the tests showed that the product could not be launched to the market. This meant that all the efforts that company undertook while preparing for the launch remained uncompensated.
Commercial production is not a valid activity for an R&D claim. Since the launch was supposed to be commercial, the company did not consider the work as part of valid R&D. Nevertheless, the consultant was able to identify the pockets of R&D qualifying work that were eligible for the claim, to draft the corresponding narrative, and by that to add a significant part of the expenditure to the claim. The company was able to recover above €1,000,000 that otherwise could have been lost.
Braithwaite’s technical consultants assist companies with efficient identification and preparation of their R&D work, as well as developing processes for proper tracking of information. However, having mentioned this, identifying and determining R&D work for claim submission involves the experience of a trained professional who is an expert in each relevant industry. Trust the R&D experts at Braithwaite Ireland with your next R&D Tax Credit Claim by contacting us today.
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