Businesses that carry out systematic R&D in Ireland could be eligible for valuable tax relief in the form of R&D Corporation Tax Credits.
Unfortunately, it’s not just as simple as making a claim when you’re ready. The Finance (No. 2) Act 2023 introduced the requirement for pre-filing notification, which means that for accounting periods starting on or after 1 January 2024, first-time claimants and those who haven’t claimed in the last three years must pre-notify Revenue of their intention to claim.
To help businesses prepare for a successful R&D claim, we’ve answered the frequently asked questions about pre-filing notification for claiming R&D Corporation Tax Credits.
What is the deadline for completing a pre-filing notification form?
The deadline for submitting the pre-filing notification form is at least 90 days before the claim. R&D Corporation Tax Credits claims must be made within 12 months from the end of the relevant accounting period.
What details are needed for a pre-filing notification?
To submit a pre-filing notification, Revenue will need basic company details along with an outline of your R&D activities.
When providing information for your qualifying R&D projects, you will need to include:
- The accounting period
- The estimated number of employees working on R&D projects
- The estimated number of R&D projects
- Details of any R&D expenditure that was or will be paid for by a grant or other type of financial assistance
- Brief descriptions of qualifying R&D projects and activities
- Any other information relevant to your claim
If you’re applying for relief on your R&D expenditure for buildings (or structures), you’ll need to confirm that the building is used for R&D activities for at least 35% of the time over four years.
An authorised representative of the company must also sign completed pre-filing notifications.
How many pre-filing notification forms need to be filled in?
There are two separate pre-filing notification forms, which are relevant for different types of R&D expenditure. The first is for research and development expenditure on qualifying R&D activities. The second is for R&D expenditure on qualifying buildings and structures.
How Leyton can help
Filling in a pre-filing notification form requires detailed knowledge of the expenditure rules for R&D Corporation Tax Credits, as you’ll need to list your qualifying activities. This can lead to businesses either under-claiming or not claiming at all as the complex paperwork has put them off.
The pre-filing notification is also just the first step, as businesses must submit both the pre-filing notification and the R&D Corporation Tax Credits claim to receive the relief.
At Leyton Ireland, we’re passionate about helping innovative businesses fund their research and development. We take the hassle out of the claims process by preparing an R&D report that can be used to complete the required information requested in the pre-notification form. Our friendly tax and technical specialists will review your project activity to identify all eligible costs, helping you maximise your claim.
Speak to an expert today to learn more about how we can help.
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