New Refundable R&D Tax Credit Payment Mechanism

The R&D tax credit provides for a credit of 25% on qualifying expenditure on R&D. Where this credit is available as a cash refund it is typically paid out in three instalments spread over three years.

As part of Finance Bill 2022, amendments were made such that the repayable R&D tax credit could be available to a wider cohort of companies, while also allowing more of the credits to be available to claimants in the first and second instalments.

The latest statistics from 2020 show that over €250M of credits were claimed in the form of a repayable credit and so this amendment should act to increase cash flow for a significant number of companies making R&D tax credit claims. 

The new changes in Finance Bill 2022 can be applied to accounting periods commencing on or after 1st
January 2022 and we have set out two useful examples highlighting the differences in timing of refundable credits between the in-situ and new repayment mechanism.

To find out more about the new amendments made in Finance Bill 2022, download our brochure below. 


Should you wish to discuss how these changed might impact your organisation, please contact Mark O'Sullivan (

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