R&D Tax Credit Claims: A critical warning for timely submission

BDO Ireland
Insights
2025
R&D Tax Credit Claims: A critical warning for timely submission

R&D Tax Credit Claims: A critical warning for timely submission

As trusted advisors to innovative businesses, we wish to highlight a crucial lesson from a recent Tax Appeals Commission case (236TACD2025) regarding Research & Development (“R&D”) tax credits. This case serves as a stark warning: failure to submit a complete R&D tax credit claim within 12 months of your accounting year-end will likely result in automatic disqualification, regardless of the circumstances.

The Increasing Value of R&D Tax Credits

The R&D tax credit regime is one of the most valuable incentives available to companies carrying out R&D in Ireland. The R&D tax credit rate has increased recently to 30% from 25%, and will further increase to 35% from 2026, making it even more attractive for businesses investing in R&D.

For example, a company with €1,000,000 of qualifying R&D expenditure stands to receive €300,000 in tax credits today, rising to €350,000 in 2026. This can significantly enhance cash flow, reduce corporation tax liabilities, and support further investment in growth and development.

The 12-Month Deadline

The case under review involved an appellant who had undertaken a legitimate R&D project, completed all required technical documentation, and attempted to file both the CT1 tax return and the R&D specified return form before the deadline. Unfortunately, due to a technical error (an attachment not uploading, compounded by an incorrect email address in the online system), the specified return was not received by Revenue until after the legislative deadline.

Despite the appellant’s genuine intent and subsequent efforts to rectify the error, the Commissioner set out that the law is unequivocal and that:

Section 766(5) and 766C(9) of the Taxes Consolidation Act 1997 state that a claim “shall be made within 12 months from the end of the accounting period in which the expenditure...is incurred.”
There is no discretion, no exceptions, and no allowance for extenuating circumstances, even for genuine mistakes.

As such, the Commissioner confirmed that Revenue cannot accept claims made outside this statutory window.

Key takeaways for claimants

1. Plan Early and Submit Well Before the Deadline

Do not leave submissions to the last minute.
Allow time for technical issues, clarifications, or unexpected complications.

2. Ensure Complete and Accurate Submission

The CT1 form can be tricky to complete, and the online system often prone to issues/errors. As such, if you are unsure whether you have captured the required information, check Revenue guidance for relevant requirements.

3. Monitor Confirmation of Submission

Always verify receipt of all forms and any ancillary attachments by Revenue.
Use correct contact details on all Revenue platforms.
If in doubt, proactively follow up with Revenue prior to the deadline.

4. Engage Qualified Advisors

Work with experienced tax professionals familiar with R&D credits and Revenue procedures.
Advisors should have robust checklists and controls to avoid administrative oversights.

5. Retain Evidence of Submission

Keep records of all filings, acknowledgements, and communications with Revenue.

The R&D tax credit regime is an invaluable resource for companies seeking to innovate and grow. However, the statutory deadlines are strictly enforced. As demonstrated by the recent appeal case, even genuine errors or administrative oversights will likely result in permanent loss of the credit for that period.

Do not risk missing out on substantial financial support for your business. Engage early, prepare meticulously, and ensure your claim is complete and received by Revenue before the deadline.