Revenue has announced that R&D claims made in the Year 2020 ( regarding 2019 financials ) which are ordinarily only due refunds in September 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. Future amounts due will not be paid until future years so it’s not all in your favour but getting the cashback in a month or so rather than October / November is welcome.
We strongly recommend that your company undertakes the following immediate steps:
- Immediately commence the preparation of your FY19 R&D tax credit claim, so that the above can be availed of.
- Submit your Form CT1 / Corporation Tax return for 2019 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 2020 instalments of excess Research and Development (R&D) Tax Credits
Section 766 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 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 2020, bringing forward payment in advance of the date provided by Section 766. Requests for Revenue to expedite the payment of any 2020 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 2019 must, at the time of the request, be submitted.
To ensure timely processing of requests, they should be tagged appropriately within MyEnquiries:
- the enquiry relates to ‘Corporation Tax’
- more specifically ‘R&D instalments payable in 2020’.