Case Study 1: VAT Advice on Commercial Lease
An SME entering into a 15-year lease on new business premises was referred to us by their accountant.
Our Client’s Issue:
The client carries out both VATable and VAT-exempt activities and wished to understand the VAT implications of signing a lease where the landlord was charging VAT on the rents (i.e. the landlord was opting to tax the lease).
- We undertook a comprehensive review of the lease documents prepared by the landlord’s advisors
- We provided the client with detailed written advice regarding the meaning of the VAT clauses therein and their implications for the client
- We collaborated with the client’s solicitors to propose a revised VAT wording which would be more beneficial to our client
- Together with our client’s solicitor, we agreed acceptable wording for the VAT clauses in order to limit our client’s exposure in relation to the lease agreement.
Benefits For Our Client:
The client entered into a lease agreement over the premises with exposure to future VAT costs greatly reduced.
Case Study 2: R&D Tax Credit
Our client’s Issue:
A medical device manufacturing company undertook R&D to develop software which was innovative and new. There were substantial costs involved in the R&D but no immediate income stream. The company was referred to us by one of our accountant clients to assess whether the R&D tax credit may be available to the company.
- We collaborated with the company’s Chief Technical Officer to enable the client to determine that the activities undertaken by it were R&D for the purposes of the R&D Tax Credit
- We then worked with the client’s technical and financial teams to produce a robust defence file in support of the R&D tax claim
- We analysed all costs involved, including outsourced costs and calculated the R&D tax credit due to the company
- We supported the company in responding to queries raised by Revenue in relation to the R&D tax credit claim
Benefits for Our Client:
We secured an R&D tax credit cash refund of €55k over three instalments for our client which significantly alleviated cashflow difficulties for the company and enabled the company to continue with further R&D work.