ABGi recommends preparing the technical and financial costing information before an R&D claim is submitted to Revenue. When a claim is submitted, it is Revenue’s process to review the claim internally, which may result in request(s) for claim details, additional supporting information and/or an onsite audit. Taking a proactive approach in preparing the technical and financial costing information ensures that the information is at hand should Revenue issue such a request. It is important to remember that Revenue can query your claim within four years of the year the claim was filed.

What to expect when an R&D claim is selected for further review and/or audit.

A claimant can be contacted by Revenue regarding an R&D claim through My Enquiries on ROS. It is recommended to contact your R&D provider first before making any communication with Revenue.

ABGi are seeing over 90% of their clients now getting reviewed by Revenue. The first step consists of a non-official 7 questions sent in correspondence to My Enquiries. It queries such information as to understand how the R&D claim meets the science and accounting tests. Revenue also requires the claimant to provide the linkage between the qualifying project(s) and the claimed R&D expenditure, the employees qualifications and their time allocations.

Engaging ABGi Ireland

All ABGi Ireland clients will have this information completed by the time this questionnaire is received, and we will be able to revert back to Revenue confidently and promptly.

If the Revenue inspector agrees that the provided information is sufficient and the R&D projects are deemed eligible, the claim will be approved and instalments released. If the inspector has any concerns around the nature of information provided or has some further questions to be clarified, the inspector may issue another letter (Level 1 or Level 2) for further clarification or request for a visit to review the R&D claim onsite (Level 3).

ABGi can support any company with any Level of enquiry and prepare them for responses, and if a Level 3 site is required, we will help the claimant prepare prior to the meeting, as well as support them on-site that day.

Revenue audit meeting

The meeting covers two aspects of the claim to assess its eligibility and the qualifying expenditure. After the inspector has a general understanding of the company’s business background, the inspector will be interested in hearing from the claimant to explain the R&D projects and how they meet the qualifying criteria defined/interpreted in the latest Revenue Guidelines.

Subsequently, the inspector reviews the costing information to discuss if the claimed amount is commensurate with the work performed and how each item is linked to the qualifying projects claimed. During such a meeting, Revenue may request for documentation to support the claim. Therefore, it is our recommendation to maintain contemporaneous documentation in case of an audit. Although it does not happen often, Revenue may choose to involve an external reviewer (an expert from University or Industry) to assist the science review if necessary.

Are audits common for first time filers?

Revenue does not differentiate the claims submitted by first-time filers and experienced filers. The claim is assessed by its supporting documentation and an onsite audit is triggered when they haven’t been satisfied by the responses received. However, due to lack of filing experience, first-time filers usually require more assistance in preparing for the audit meeting, and the ABGi team will be able to assist given our substantial and successful experience with audits at all levels.

Can I get audited if I have filed successful claims in the past?

Auditing is part of the Revenue’s process to ensure that the R&D claims are valid and meeting the current standard of requirements. Any change in legislation or Revenue Guideline may result in a gap of understanding. To ensure the claimants understand the changes, audits may happen to any claimant whether claims have been accepted or rejected in the past.

The R&D tax credit scheme is designed to review the claim on a yearly basis. As a result, projects deemed qualified in the previous year may not be qualifying in the next year. Therefore, audits may happen to claimants who have had successful claims in the past, however the ABGi Ireland team will ensure that our clients maintain an up-to-date knowledge of the programme due to the updates made by Revenue.

Need Help?

At ABGi, we’ve been helping Irish businesses successfully leverage R&D tax credits and grants since 2011. Whether your work involves basic research, applied research, or experimental development, ABGi can take the uncertainty out of the filing process and get you the credit you deserve for your innovation.

Contact us today for our range of Audit Support Services