Where a company is satisfied that it can comply with the requirements, a claim to relief may be made by completing the Research and Development section of the CT1 form. Any claim under s.766 must be made within 12 months of the end of the accounting period in which the expenditure on R&D giving rise to the claim is incurred.
If a company is looking to submit an R&D claim, in our experience filing with the CT1 submission is highly recommended to benefit from tax credits, an improved cash flow and gaining lower tax liabilities with an immediate effect. It is recommended that companies submit their R&D tax credit figure with a current CT1 (9 months) filing rather than amending the CT1 (12 months) to avoid last minute amendment of the CT1, and benefit from filing all taxes at once. Companies could invest this credit/refund back into their business to allow for growth. For example companies with a calendar or December year end need to submit their CT1 (including R&D tax credit details) by the 23rd September of the following year.
The preparation of the R&D Tax Credit Claim package involves the following:
- Determining eligibility of projects based on current Revenue guidelines;
- Reviewing internal systems and processes to identify projects;
- Collation and analysis of technical information around eligible R&D projects;
- Preparation of technical reports that outline the project(s) eligibility and the related costs; and
- Preparation of the costing report, utilising accounting methodologies and the guidelines.
For a detailed evaluation on preparing for the Irish Corporate Tax Return (CT1) filing with R&D claim, please contact the professionals at Braithwaite.