R&D Tax Credits: Why Irish businesses must take compliance seriously in 2026

Revenue has watched closely what has happened in the UK, where years of aggressive promotion, poor-quality advisory practices and outright fraud have forced HMRC into a full-scale clampdown.

Today’s environment – on both sides of the Irish Sea – proves one thing beyond doubt: professional, evidence-driven advice is a crucial protection.

The UK experience: A warning for Ireland

HMRC’s published numbers show the scale of the problem they have faced: 

• In 2020–21, HMRC estimated £1.13 billion in fraudulent / incorrect R&D claims – 16.7% of all claims.
• Following sweeping reforms, new reporting requirements, mandatory pre-notification and significantly expanded compliance teams, fraud and error have now fallen sharply.
•  The level of fraud estimated by HMRC for 2024–25 dropped to £481 million, or 5.9% of claims – a substantial improvement and evidence that the clampdown is working.

Ireland has taken note – and Revenue has no intention of letting similar abuse take root here.

Ireland: A more generous credit, a more serious compliance environment

While Revenue does not publish fraud/error estimates like HMRC, it does publish annual claimant numbers and Exchequer cost – and these continue to rise. In 2023, the recent year for which statistics are available, the credit was availed of by 1,804 companies at a cost of €1.4BN to the exchequer. Just two years earlier in 2021, the credit was availed of by 1,629 companies at a cost to the exchequer of €753M.

That means the credit is increasingly important to companies, increasingly costly to the exchequer and, therefore, increasingly monitored.

Recent reforms make this absolutely clear:

• The credit increased from 25% to 30% from 2024.
• The credit will rise to 35% from 2026. 
• Pre-filing notification now required for first-time and returning claimants – a direct parallel to the UK’s anti-fraud reforms. 
• Revenue’s guidance places clear emphasis on contemporaneous technical evidence, time allocation and cost justification.

As the credit becomes more lucrative, Government policy has shifted firmly toward protecting the integrity of the regime. Companies should expect more – not fewer – reviews.

Why clients need proper R&D tax advice

The days of “easy” claims are over. Ireland is moving toward the same standards HMRC now enforces – before the problems ever arise here.

Good advice vs bad advice

Good advice:

• Technical eligibility assessed by qualified specialists.
• Detailed, audit-ready documentation mapped to Revenue’s requirements.
• Robust time and cost methodologies.
• Advisors who challenge you, not flatter you.

Bad advice:

• Unrealistic promises of refunds.
• Generic templates not aligned to your technology.
• No evidence plans or time-tracking.
• Claims prepared by non-technical writers.

Why we take compliance seriously (and why you should too)

Our job is simple: to protect your business and deliver claims that stand up to Revenue review every single time.

We insist on proper evidence, clear R&D narratives, rigorous cost allocation and early planning –m not because we enjoy paperwork, but because:

• Revenue reviews have increased.
• Claim values are rising sharply.
• Government wants to prevent abuse of the type seen in the UK.
• The taxpayer deserves value for money.
• Clients deserve claims that will withstand scrutiny.

Professional compliance isn’t burdensome. It’s insurance – and it’s in your interest.

Conclusion

Ireland’s R&D tax credit is becoming more valuable than ever – and with a 35% rate from 2026, the stakes have never been higher. The UK has shown what happens when a generous regime meets poor-quality advice: billions lost, thousands of enquiries and entire sectors under investigation.

Ireland is determined not to repeat that mistake. Revenue is tightening expectations, and businesses must raise their standards too.

Good advice protects you. 
Bad advice exposes you. 
Compliance isn’t optional – it’s essential.

If you want to ensure your R&D claim is defensible, optimised and fully aligned with Revenue requirements, we would be delighted to support you.