This is welcomed news from Revenue and a move that could free up thousands of euro in much needed cash for Irish businesses.

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.

How to apply to Revenue

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’

 

Should you require assistance with the above and/or you have any questions concerning the items in this announcement please contact the Braithwaite team today.