Urgent Revenue update to R&D Performing companies

Revenue have announced that early payments are available for cash instalments of excess research and development tax credits that are due to be paid in 2020. This provides an incentive for companies that are in an R&D repayment situation to expedite filing their corporate tax returns.

Revenue’s e-Brief communicates that the legislation (Section 766 of the Taxes Consolidation Act 1997) which 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 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 2020, bringing forward payment in advance of the date provided by Section 766.

Requests for Revenue to expedite the payment of any 2020 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 2019 must, at the time of the request, be submitted.

Where clients require assistance with the above and its application we are here to help.

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