-
Aviation Advisory
Our dedicated Aviation Advisory team bring best-in-class expertise across modelling, lease management, financial accounting and transaction execution as well as technical services completed by certified engineers.
-
Consulting
Our Consulting team guarantees quick turnarounds, lower partner-to-staff ratio than most and superior results delivered on a range of services.
-
Business Risk Services
Our Business Risk Services team deliver practical and pragmatic solutions that support clients in growing and protecting the inherent value of their businesses.
-
Deal Advisory
Our experienced Deal Advisory team has provided a range of transaction, valuation, deal advisory and restructuring services to clients for the past two decades.
-
Forensic Accounting
Our Forensic and Investigation Services team have targeted solutions to solve difficult challenges - making the difference between finding the truth or being left in the dark.
-
Financial Accounting and Advisory
Our FAAS team designs and implements creative solutions for organisations expanding into new markets or undertaking functional financial transformations.
-
Restructuring
Grant Thornton is Ireland’s leading provider of insolvency and corporate recovery solutions.
-
Risk Advisory
Our Risk Advisory team delivers innovative solutions and strategic insights for the Financial Services sector, addressing disruptive forces, regulatory changes, and emerging trends to enhance risk management and foster competitive advantage.
-
Sustainability Advisory
Our Sustainability Advisory team works with clients to accelerate their sustainability journey through innovative and pragmatic solutions.
-
Asset management Asset management of the futureIn today’s global asset management landscape, there is an almost constant onslaught of change and complexity. To combat such complex change, asset managers need a consolidated approach. Read our publication and find out more about what you can achieve by choosing to work with us.
-
Internal Audit Maintaining Compliance with New EU Pension Directive IORP IIOn 28 April 2021, the Irish Government transposed IORP II (Institution for Occupational Retirement Provision), an EU directive on the activities and supervision of pension schemes, into law.
-
Risk, Compliance and Professional Standards FRED 82 – Periodic Updates to FRS 100 – 105The concept of a new suite of standards for the UK and Ireland, aligning with international financial reporting standards, was first conceived in 2002
-
Audit and Assurance Auditor transition: how to achieve a smooth changeoverAppointing new auditors may seem like a daunting task that will be disruptive to your business and a drain on the finance function. Nevertheless, there are a multitude of reasons to consider a change, including simply seeking a ‘fresh look’ at the business.
-
Corporate Tax
Our Corporate Tax team is made up of more than 40 highly experienced senior partners and directors who work directly with a wide range of domestic and international clients; covering Corporation Tax, Company Secretarial, Employer Solutions, Global Mobility and Tax Incentives.
-
Financial Services Tax
The Grant Thornton team is made up of experts who are fully up to date in terms of changing and evolving tax legislation. This is combined with industry expertise and an in-depth knowledge of the evolving financial services regulatory landscape.
-
Indirect Tax Advisory & Compliance
Grant Thornton’s team of indirect tax specialists helps a range of clients across a variety of sectors including pharmaceuticals, financial services, construction and property and food to navigate these complexities.
-
International Tax
We develop close relationships with clients in order to gain a deep understanding of their businesses to ensure they make the right operational decisions. The wrong decision on how a company sells into a new market or establishes a new subsidiary can have major tax implications.
-
Private Client
Grant Thornton’s Private Client Services team can advise you on all areas of financial, pension, investment, succession and inheritance planning. We understand that each individual’s circumstances are different to the next and we tailor our services to suit your specific needs.
Revenue published the long–awaited updates to their Research and Development (R&D) guidelines covering the treatment of rental expenditure. The updates also include information on the treatment of subsidies received under the Temporary Wage Subsidy Scheme (TWSS) and Employment Wage Subsidy Scheme (EWSS).
Treatment of rent
R&D guidelines which issued on 1 July 2020, stated that ‘Rent is expenditure on a building or structure and is excluded from being expenditure on research and development by section 766(1)(a) TCA 1997.’ Previously, in our experience Revenue would have accepted the inclusion of rent when included in the same manner as other overheads, i.e. where a just and reasonable apportionment has been used. Since publication of the guidance July last, the Revenue’s position on rent has been a continuous discussion between tax advisors and Revenue, it has been engrained in most, if not all, discussions with clients involved in research and development. Clarity was sought from Revenue on their position on rent and also on the application of this position to historic and new claims for R&D tax relief.
Latest position
In these latest updates, Revenue’s stated view is that in “many cases expenditure incurred on renting a space or facility, which is used by a company to carry on an R&D activity, may be expenditure that is incurred “for the purposes of”, or “in connection with”, the R&D activity but will not constitute expenditure incurred wholly and exclusively in the carrying on of the R&D activity”. According to the Revenue update, the eligibility of rental expenditure for relief will depend on the “extent to which it is incurred wholly and exclusively in the carrying on of the R&D activities”.
What does it mean?
In certain scenarios, rental expenditure may be included as part of an R&D tax relief claim. In cases where a building is rented, which is ‘”integral to the carrying on” of R&D activities, rent may be treated as an allowable expense, such as renting a specialist laboratory required purely for carrying out the R&D activity. On the other hand, if a company rents a warehouse or office space where R&D activities happen, the rent will not be treated as eligible expenditure.
While Revenue maintain their position on the treatment of rent and this is disappointing, we understand from communications we have had with Revenue that this position will only apply for accounting periods commencing from 1 July 2020. We expect that Revenue will not examine R&D claims retrospectively for the inclusion of rent.
Treatment of TWSS and EWSS
All subsidy amounts received by companies under the TWSS and EWSS are considered State support and therefore such amounts will reduce the qualifying eligible expenditure. Therefore, businesses should identify TWSS and EWSS subsidy amounts received for staff working on R&D tax relief projects and reduce their qualifying R&D tax relief expenditure accordingly.
Early payment of cash instalments due in 2021
Revenue also provide separate guidance on their website on the early payment of cash instalments due in 2021. Repayable R&D tax credits are not typically available until at least nine months after the end of the company’s accounting period. However, given the exceptional circumstances due to Covid-19 Revenue will expedite the payment of any instalment of excess R&D tax credit that is due to be paid in 2021 i.e. the 1st instalment of 2020, 2nd instalment of 2019 and 3rd instalment of 2018.
How to claim
To avail of this early payment, a claim must be made to Revenue, and at the time of the claim, the corporation tax return for the accounting period ending in 2020 and for accounting periods ending up to March 2021, must be filed with Revenue. Claims will be subject to Revenue checks.
How can we help?
At Grant Thornton, we prioritise the specific requirements of each client, ensuring their R&D tax relief claim is fully maximised and substantiated in line with both R&D legislation and the latest Revenue guidelines. Our multidisciplinary team have extensive experience navigating Revenue audits and periodically meet with Revenue and industry leaders in order to stay up to date on the latest changes.
See our Tax Incentives offering