The Other Side of Budget 2026: What Irish Businesses Need to Beware Of in the R&D Market

The Other Side of Budget 2026: What Irish Businesses Need to Beware Of in the R&D Market

Budget 2026 has reaffirmed Ireland’s commitment to innovation, with the R&D tax credit rate rising to 35% (a 14.2% increase) and the first-year refund cap increasing to €87,500. This enhanced support should be great news for companies investing in new products, processes, and technologies.

But there’s another side to this story.

Increases of this scale inevitably attract not only genuine R&D specialists — but also unscrupulous operators looking to make a fast profit, often with little regard for compliance, accuracy, or the long-term interests of Irish businesses.

Across the Irish market, we’re already seeing worrying signs that mirror what happened in the UK several years ago.

The Rise of High-Pressure, Low-Expertise R&D Sellers

Some companies entering the Irish R&D landscape are using tactics that should immediately raise red flags. We’ve seen:

• Inexperienced “sales-first” teams making initial contact rather than technical professionals.
• High-pressure sales approaches, pushing businesses to sign multi-year, fixed-percentage contracts.
• Repeated calls and aggressive follow-up, sometimes multiple times per week.
• Salespeople based in Ireland, but no technical or financial experts on the ground.
• Claims of massive refunds before anyone has reviewed a single technical detail of the business.
• Advisors relying on AI-generated reports rather than qualified technical writers.

These behaviours signal an approach built around volume and quick wins — not compliance, accuracy, or genuine support.

A Valuable Lesson from the UK

The UK market provides a clear warning of what can happen when inexperienced operators flood the R&D tax space.

During the COVID period, a boom in unqualified R&D advisors created a surge of questionable claims. HMRC responded with sweeping reforms and tighter scrutiny.

The consequences?

• SME claim numbers fell to just over half of their 2021 peak.
• The total value of R&D benefits returning to SMEs dropped by over 27%.
• Legitimate businesses faced delays, enquiries, and increased administrative burdens.
• Trust in the incentive suffered — despite R&D tax relief being an essential tool for driving innovation.

Ireland must avoid repeating this pattern. And businesses must be cautious about who they trust.

Choosing the Right R&D Partner in Ireland: What to Look Out For

When selecting an R&D tax credit advisor, Irish businesses should look for the following essential attributes:

1. Do They Qualify Projects Properly?

A credible advisor must assess your activities through a technical-first lens, not a sales pitch. No advisor should promise benefits before understanding your work.

2. Are They Based in Ireland?

Local presence matters. Your advisor should have technical and financial teams operating in Ireland, not just sales teams.

3. Do They Have a Proven Track Record with Irish Revenue?

Experience with Irish Revenue’s processes, reviews, and expectations is critical for a compliant and defendable claim.

4. Do They Have In-House Chartered Accountants?

R&D claims combine technical narrative with financial accuracy. You need both.

5. Do They Have Expert Technical Report Writers — Not AI-Generated Reports?

AI can support research, but it cannot replace expert human analysis. Revenue expects technical reports grounded in real engineering, science, or software reasoning.

6. Do They Work Face-to-Face with Clients?

Complex innovation cannot be understood through forms and phone calls alone. On-site, in-person engagement remains the gold standard.

7. Will They Ensure Full Compliance?

A responsible advisor prioritises long-term sustainability, not inflated refunds.

8. Can They Help You Plan Future R&D?

Great advisors don’t just document the past — they help shape your innovation strategy moving forward.

Momentum Tax Group: Ireland’s Technical-First R&D Specialists

Momentum Tax Group is built around a simple principle:
Technical accuracy and compliance must come first.

Here’s how we support Irish businesses:

1. Comprehensive Technical Qualification

We identify – and validate – your eligible R&D activities before talking about benefits. No shortcuts, no guesswork.

2. Ireland-Based Expertise

Our technical consultants and Chartered Accountants are based in Ireland, working directly with clients.

3. Proven Track Record

With 15+ years working in R&D tax across Ireland and the UK, our team has deep multi-sector experience and strong familiarity with Revenue expectations.

4. Face-to-Face Client Engagement

We work on-site wherever possible to understand your processes, challenges, and innovations first-hand.

5. Human-Driven Technical Reporting

Our reports are written by specialists with real engineering, scientific, and technical backgrounds — not by AI.

6. No Long-Term Contracts

We offer flexible engagement terms that suit your business, not ours.

7. Transparent, Fair Pricing

Our fees reflect the value of our work — not a percentage of your refund.

8. Compliance at the Core

We ensure your claims are defensible, transparent, and fully aligned with Revenue guidelines.

9. Support for Future R&D Planning

We help you map out future technical development, ensuring sustainability, compliance, and maximum benefit.

Final Thoughts

Ireland’s enhanced R&D incentives create extraordinary opportunities — but only when businesses choose partners who prioritise technical integrity, compliance, and long-term value.

Don’t let high-pressure sales tactics or inexperienced providers put your business at risk.

Choose an R&D advisor who understands your innovation, protects your compliance, and supports your growth.

Choose Momentum Tax Group — Ireland’s technical-first R&D partner.

Let’s map out your plan for growth under the enhanced Irish R&D regime.  If you'd like a no-obligation review or just a second opinion on your tax incentive claims, contact Momentum Tax Group on Dublin 1 265 4090 or our Head Office +44 (0) 28 9140 4030, or email tax@momentumtaxgroup.com