NI ERIS explained: what accountants need to know

The new Northern Ireland ERIS (NI ERIS) scheme has introduced another layer of complexity into an already challenging R&D tax landscape.

We’ve recently updated WhisperClaims so you can now handle NI ERIS claims seamlessly within the app. That makes this a good time to revisit what’s different about NI ERIS, how it compares to RDEC and ERIS, and what it means for companies based in Northern Ireland.

Key differences at a glance

Across all three schemes, the rules around what qualifies as eligible R&D, and which costs can be claimed, remain broadly the same. However, the qualifying criteria, amount that can be claimed and how the tax benefit is calculated are slightly different for each. Here’s a quick summary of the main points:

What this means in practice

From a claim preparation perspective, gathering data and calculating expenditure looks very similar between ERIS and NI ERIS. But, for Subcontractor and EPW costs, it’s still vital to gather data on whether they might be subject to the overseas restrictions and any exemptions, as you need to be able to calculate the difference in benefit between NI ERIS, which would include overseas costs, and RDEC, which would exclude the overseas costs.

It’s also important to look at whether the company is obliged to claim under NI ERIS and whether it could, or has, opt out of the restrictions. The things to consider here are:

All NI companies can choose to claim through RDEC rather than NI ERIS.

Companies that do not carry out a trade in goods or activities related to electricity can choose to opt out of the NI provisions and claim through ERIS.

Companies that do carry out a trade in goods or activities related to electricity cannot opt out and thus can only claim either NI ERIS or RDEC.

Finally, when gathering data about the claim, you’ll need to make sure to gather information about any De Minimis Aid received by the company, and any connected companies in the three-year period leading up to submitting the claim. You’ll also need to know about any previous NI ERIS claims, specifically the benefit received, and the amount of qualifying expenditure claimed.

The choice to claim through RDEC, ERIS or NI ERIS must be made on a case-by-case basis, considering the make-up of the qualifying expenditure, the company’s ability to opt out of the NI Provisions, and the tax benefit available to the company through each scheme.

How do I calculate whether the company has reached the De Minimis Aid limit?

This is where NI ERIS claims can get tricky! To calculate whether a NI ERIS claim will breach the cap, claimants must add together the following:

Any de minimis aid received by the company in the three years up to the date of submission of the R&D claim;

If the claimant company is a member of a group, any de minimis aid received by any group company in the three years up to the date of submission of the R&D claim;

The difference between any tax benefit received by the company or any group companies from previous NI ERIS claims in the three-year period and the amount of RDEC that would have been received.

Once this figure has been calculated the company can work the maximum net benefit that can be claimed in the current claim period. For example, if the total De Minimis Aid received equals €290,000, then the difference between the amount claimed through NI ERIS and the benefit that would have been received if the same expenditure was claimed through RDEC cannot be more than €10,000.

If claiming the full qualifying expenditure through NI ERIS would breach the cap, then the amount that can be claimed through NI ERIS whilst allowing the claim to remain within the limits must be calculated and any remaining qualifying expenditure must be claimed through RDEC.

How WhisperClaims helps

Our newly updated WhisperClaims app is designed to handle NI ERIS claims seamlessly. With stricter HMRC oversight accountants and advisers need a process that leaves nothing to chance. WhisperClaims keeps you on track with tailored guidance, risk assessments and expert Advice Line support, helping you submit robust & compliant claims with confidence.

Why not catch up on our webinar, “ Grants don’t matter anymore… Except when they do. NI ERIS explained ”, where we discussed grants, the NI ERIS scheme, and how to approach NI ERIS claims in practice.

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