The Importance of Filing the R&D Tax Credit with your Companies Corporation Tax Return (CT1)

The Corporation Tax Return form (CT1) submission deadline is 9 months and 23 days from a companies’ closing year end. For example, if a company has a December 2020 fiscal year end, it is ideal to submit the R&D Tax Credit by September 23^rd, 2021, rather than waiting until the 12-month deadline (December 2021). Below we outline some of the benefits on why filing by the CT1 Deadline is beneficial.

What Are the Benefits of Filing by The CT1 Deadline?

1. Filing the R&D Tax Credit as part of the CT1 tax return is more favourable as by extending it to the 12-month deadline, can lead to information being harder to track and remember for the company.
2. If the R&D Tax Credit is submitted as part of the CT1 return, there is no need of a later amendment to the form, this could therefore avoid possible queries and questions asked from the Revenue.
3. Maximising the cash or credit return as there is not a last-minute rush. There is time to track all eligible activities and expenditures in a timely manner.
4. A faster return on investment. The sooner a company submits their R&D Tax Credit, the possibility of the credit or refund being issued earlier increases.

When submitting a Research and Development Tax Credit to Revenue Ireland, many companies wait until the last minute to make a submission. This can cause a lot of stress on an organisation leading to many eligible R&D activities and relevant expenditure missed on a claim and leaves a year’s worth of hard work left behind. To combat waiting until the 12-month deadline, companies can file much sooner and as part of the Corporation Tax Return (CT1) submission.

We at Braithwaite Ireland highly recommend all our clients to submit on time and as part of the CT1 filing deadline. By allowing sufficient time to file, it is our mission to review every department, activity, and cost centre to ensure the claims are prepared and processed correctly and accurately. We can potentially maximise each one of our client’s claims by 5%-20%. Trust the experts at Braithwaite Ireland by contacting us today.