11 July, 2015

There are many different questions and concerns that people have with the R&D programme. Braithwaite has outlined below some FAQ’s that are important to understand.

Why would I use a third party to file? Can’t I do the claim on my own?
Yes, every company is able to file a claim on their own but you are potentially putting the claim at risk. Braithwaite will become your R&D tax credit partner and will mitigate that risk on your behalf.
What can be claimed when filing a claim?
Wages, Materials, Capital Expenditures and Building Costs.
Can I file a claim if I’m conducting R&D outside of Ireland?
Yes but it must be within the EEA (European Economic Area).
How far back can I go to file a claim?
1 year or 12 months from the end of your fiscal year.
What is the difference between the Corporate Tax CT1 filing deadline and the R&D claim deadline?
The Corporate Tax CT1 filing deadline is 8 months, 23 days from the company’s fiscal year end. This is also the preferred R&D filing date by Irish Revenue. The R&D claim deadline is 12 months from the company’s fiscal year end. When filing within the 12-month deadline, the CT1 will be amended.
How long does it take to receive my incentive from the government?
Providing there are no outstanding taxes owing (in order of offset: Corporation Tax, Income Tax excluding PAYE, Capital Gains Tax, VAT, PAYE), R&D tax credits are first applied to any taxes owing in the current fiscal year that they are acquired.  Any remaining R&D tax credits are then applied to any taxes owing in the previous fiscal year.  The remaining credits are then cash refunded in 3 instalments over a 3 year period (33 month specifically) where a 33% cash refund is processed in the current year.  Each cash refund instalment will be paid no earlier than 9 months (8 months, 21 days specifically) from the company’s fiscal year end.  Therefore, assuming the company has no corporate taxes payable in the 3 year period, the 3 cash refund instalments will be 9 months, 21 months and 33 months from the fiscal year end.
Interested in estimating your R&D credit/refund?
Check out Braithwaite’s R&D Calculator
Braithwaite Technology Consultants Ltd can assist you in obtaining tax credits for research and development activities. Whether your work involves basic research, applied research, or experimental development, Braithwaite can take the uncertainty out of the filing process and get you the credit you deserve for your innovation.
Victoria Procunier
Senior Business Consultant
Mobile: +353 85 216 6966
Email: vprocunier@braithwaite.ie