COVID-19: early repayment of R&D Tax Credits

Apr 06, 2020

 Due to the exceptional circumstances Revenue has stated that they will advance the payment of any instalment of excess R&D tax credit that is due to be paid in 2020. An early payment must be claimed by contacting Revenue via MyEnquiries. Claims will be subject to the appropriate checks by Revenue.   

Section 766(4B) Taxes Consolidation Act 1997 provides that an excess R&D tax credit is paid to the company in three instalments: 

  1. The first instalment will be paid after the tax return due date for the period ended that the qualifying R&D expenditure is incurred. 
  2. The second instalment is payable no earlier than 12 months after the tax return due date of the period in which the qualifying R&D expenditure is incurred.
  3. The final and third instalment is payable no earlier than 24 months after the tax return due date for the period in which the qualifying R&D expenditure is incurred.

Revenue will accelerate 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 dates outlined above.   Details are available on the Revenue information page (scroll down).  

An early payment must be claimed by contacting Revenue via MyEnquiries and should be tagged within MyEnquiries as 

  • Enquiry relates to ‘Corporation Tax’
  • More specifically ‘R&D instalments payable in 2020’