The latest HMRC statistics show that Northern Ireland is one of the lowest R&D Tax Credits claiming regions in the UK, which could have a detrimental impact on future growth, according to Dr Phil Chambers, Senior Manager at Sumer NI.
In the Research and Development Tax Credits Report, it was revealed that Northern Irish companies submitted only 1,305 claims for the 2023/24 tax year, a 22% reduction from 1,670 in 2022/23. Northern Ireland’s low uptake is despite Invest NI supporting 726 projects in 2024/25 representing an investment of £245m in R&D, demonstrating that this retrospective relief is still underutilised in the region.
Focussed on servicing the SME sector, Sumer NI offers a breadth of services including audit and accounting, corporate finance, insolvency, forensic accounting and tax to name a few. Its Innovation Taxes Team has a wealth of technical knowledge in fields such as aerospace, biomedical science and chemical engineering and is leading on R&D services for the wider Sumer Group across the UK.
While Northern Ireland has long since lagged behind the UK in terms of R&D claim submissions, Dr Chambers says that upcoming investments such as the £100m Advanced Manufacturing Innovation Centre (AMIC) led by Queen’s University, could provide an important opportunity to change this trend.
“From our experience, companies tend not to claim R&D tax relief because they’re simply not aware that they’re eligible to apply or worries around the complexities of the scheme,” Dr Chambers explained.
“Northern Ireland has always had a stellar reputation for innovation, science, engineering and technology. From aerospace to biomedical research and digital innovation, local companies are proving time and time again that they have the knowledge and capabilities to compete on a global scale. However, the low number of R&D claims in the region suggests that the potential for future growth could be somewhat limited.
“R&D tax relief is a vital tool for supporting innovation, particularly for SMEs. This relief supports product development, creating highly-skilled employment opportunities and attracting further investment. The lack of eligible companies claiming R&D tax relief could ultimately slow the pace of growth in sectors where Northern Ireland already has a competitive advantage.”
Sumer NI’s Innovation Taxes Team works closely with businesses to identify eligible R&D projects and associated costs and guides them through the entire process from initial consultation or advice, through to submission. The team’s extensive technical industry knowledge is something that also sets them apart according to Dr Chambers.
“Many R&D advisory teams rely solely on accountants or tax specialists for advice, but Sumer NI’s team of technical subject matter experts, who have previous experience of working in industry, bring their extensive experience, which truly sets us apart. This in-depth understanding of our clients’ sectors can make a big difference in robust R&D tax relief submissions,” Dr Chambers continued.
“With upcoming initiatives such as the £100m AMIC due to open in 2026, there’s a significant opportunity to encourage more innovative companies to check their eligibility and submit R&D claims. By ensuring that businesses are aware of, and supported in accessing R&D tax relief, we can translate Northern Ireland’s strong reputation for innovation into tangible economic growth that is futureproof.”
For more information on Sumer NI and its services, visit the website: www.sumerni.co.uk.