Sumer NI senior manager Phil Chambers has expressed concern over the low uptake of research and development (R&D) tax credits in Northern Ireland.
Recent figures from HMRC data show that during the 2023/24 tax year, there were only 1,305 claims from Northern Irish companies, a decrease of 22% compared to the previous year.
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This downturn in claims is particularly striking given the substantial investment in R&D activities, as evidenced by Invest NI’s support for 726 projects, amounting to an investment of £245m ($329.2m) in the 2024/25 period.
Despite these efforts, the region’s engagement with the R&D Tax Credit scheme remains lower than expected.
Chambers addressed the issue, noting the persistent shortfall in R&D claim submissions from Northern Ireland compared to the rest of the UK.
He highlighted forthcoming investments, such as the £100m Advanced Manufacturing Innovation Centre (AMIC) led by Queen’s University, as potential catalysts for change.
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By GlobalDataThe AMIC, due to open its doors in 2026, is seen as a pivotal development that could inspire more companies to assess their eligibility and apply for R&D Tax Credits.
Chambers said: “Northern Ireland has always had a stellar reputation for innovation, science, engineering and technology. From aerospace to biomedical research and digital innovation, local companies are proving time and time again that they have the knowledge and capabilities to compete on a global scale. However, the low number of R&D claims in the region suggests that the potential for future growth could be somewhat limited.
“R&D tax relief is a vital tool for supporting innovation, particularly for SMEs. This relief supports product development, creating highly-skilled employment opportunities and attracting further investment.
“The lack of eligible companies claiming R&D tax relief could ultimately slow the pace of growth in sectors where Northern Ireland already has a competitive advantage.”
Sumer NI provides a suite of services to small and medium-sized enterprises, including audit, accounting, and tax advisory.
