Revenue has announced that R&D claims made in the Year 2021 ( regarding 2020 financials and accounts up to 31st March 2021 ) which are ordinarily only due refunds in September 2021 will be paid early once a valid Corporation taxation return is filed. This is a significant benefit and incentive for companies to prepare and submit claims as early as possible.
ProfitPal recommendations.
We strongly recommend that your company undertakes the following immediate steps:
- Immediately commence the preparation of your 2020 R&D tax credit claim, so that the above can be availed of.
- Submit your Form CT1 / Corporation Tax return for 2020 as soon as possible, as you will not be able to avail of the expediated instalments without doing so.
I’ve put the full text to Revenue’s Announcement below
Full Revenue Announcement
Early payment of 2021 instalments of excess Research and Development (R&D) Tax Credits
Early payment of 2021 instalments of excess Research and Development (R&D) Tax Credits
Section 766 and Section 766A of the Taxes Consolidation Act 1997 provides that an excess R&D tax credit, as specified in the section, will be paid to the company concerned in three instalments. Section 766 and Section 766A provides that each of these instalments is to be paid not earlier than the date specified for that instalment in the section.
In the exceptional circumstances of the Covid-19 pandemic and subject to appropriate checks in selected cases, Revenue will expedite the payment of any instalment of excess R&D tax credit that is due to be paid in 2021, bringing forward payment in advance of the date provided by Section 766 and Section 766A.
Requests for Revenue to expedite the payment of any 2021 instalments of excess R&D tax credits should be made through MyEnquiries. To enable payment of the excess credits, the form CT1 for the company’s accounting period ending in 2020 and for accounting periods ending up to March 2021 must, at the time of the request, be submitted.
To ensure timely processing of requests, they should be tagged appropriately within MyEnquiries:
- enquiry relates to ‘Corporation Tax’
- more specifically ‘R&D instalments payable in 2020 and 2021’.
Get in Touch
If you would like assistance in preparing, claiming and securing your eligible claim please, get in touch with us and we would be happy to help.
