Early repayment of Research & Development (R&D) tax credits

In the exceptional circumstances of the Covid-19 pandemic, there has been a welcome change in the procedure that Revenue apply in relation to repayable R&D tax credits.

Previously, the earliest that a credit could be repaid is after the due date for submitting the corporation tax return (CT1) for the accounting period in question. For example, credits repayable for year ended 31 December 2020 would not be repaid before September 2021 and in most cases would not be repaid until the later part of the year or early the following year.

Revenue has now confirmed that if the CT1 is submitted, then they will expedite the repayment so that companies will not have to wait for the usual minimum nine months after the accounting period end.
Therefore, any R&D Tax Credit repayments due for FY2018 and FY2019, together with the FY2020 first instalment, should be repayable once the FY2020 CT1 has been submitted. A request must be made to Revenue through MyEnquiries by the tax agent to expedite the repayment due to the company, and the CT1 must have already been submitted before this request.

Please contact us if you require any further information or assistance in relation to the above.