Professional, Scientific & Technical

The PST sector carries out high-end scientific research and provides specialised professional services such as architectural and engineering design or consultancy. The PST sector also includes accountancy services.

NX Advisory supports these businesses wishing to apply to Revenue Ireland for the R&D tax credit:

• scientific researchers (including contract research organisations and laboratory testing services)
• architectural and engineering practices
• providers of technical testing and analysis services
• providers of specialised design and consultancy services

The R&D work carried out in the PST sector is not always easy to explain for tax purposes. We have many years of experience presenting high-level research to tax officials.

What R&D looks like in PST

R&D in PST will often involve a team of academics working in an office; but it can just as often involve scientific experimentation in a laboratory or in the field.

PST organisations typically do work that is service-based or theory-based and they provide high-level expertise to other industries. The focus is very much on technical problem-solving and scientific investigation.

A common trend in PST is regulatory R&D, in which firms create compliance-by-design software.

Typical eligible R&D activities in the PST sector

Some examples of R&D activities that might be carried out by a PST company include:

• an investigation into the use of digital twins to monitor bridges along a major road
• developing a predictive maintenance tool
• developing an autonomous system for a self-driving car
• developing an algorithm that simulates how a new alloy might perform if used in a bridge design
• creating an R&D protocol for testing the reliability of 6G antennas
• developing a data model for flood risk
• creating a system that uses AI to predict the structural integrity of novel carbon neutral materials

Some PST companies may be subcontracted by other organisations. Revenue has specific rules for contractors and subcontractors, and we recommend getting advice when applying for R&D tax relief if you think this applies to your organisation.

Costs that qualify for the R&D tax credit

Typical eligible R&D costs for companies in the PST sector might include:

• plant and machinery
• emoluments of employees carrying on qualifying activities, including subcontractors
• other qualifying costs

Most costs associated with investigating a technological uncertainty are likely to be eligible for the R&D tax credit.

How NX Advisory helps PST companies benefit from tax credits

NX Advisory has many years of experience in helping PST companies successfully apply for tax credits for their R&D activity.

As part of our process, we take the time to fully explore and understand your research activities, and our advisors have the ability to explain highly technical research projects in a way that Revenue officers can understand.

We can also ensure that your organisation fully understands your obligations where subcontractors and contractors are concerned. We can clarify how grants you may have received for your research work will interact with your tax credit claim as well. So when you get R&D tax credit support from NX Advisory, you can be confident that your application will be compliant first time.