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Due to the exceptional circumstances of the COVID-19 pandemic, on 1st April Revenue issued an e-Brief directed at all companies who are claiming the R&D tax credit and who are availing of the cashback mechanism (see Revenue’s eBrief here). 

Where a company is availing of the R&D payable credit mechanism, Revenue will expedite the payment of any instalment of excess R&D tax credit that is due to be paid in 2020 (that is, the 2nd and 3rd cash instalments from 2017 and 2018, but also potentially the 1st instalment of 2019), subject to ‘appropriate checks’ by Revenue. This brings forward the payment from the normal payment date which would typically be after the corporation tax return filing date (i.e. 23rd September for companies with a December year-end). Revenue have noted that requests for Revenue to expedite the payment of any 2020 instalments of excess R&D tax credits should be made through MyEnquiries via ROS, and that the company’s Form CT1 / Corporation Tax return must be submitted at the time of the request.

Our recommendations

Based on the above, we would 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.

Further information