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Case Study 1:VAT Advice on Commercial Lease

Our Client:

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).

Benefits For Our Client:

The client entered into a lease agreement over the premises with exposure to future VAT costs greatly reduced.

Our Work:

  • 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.

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.

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.

Our Work:

  • 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.