The Revenue Commissioners have published updates to Part 29-02-03 of their Tax and Duty Manual (aka the R&D Tax Credit Guidelines). This is primarily to incorporate the changes to the R&D Tax Credit introduced by Finance Act 2022 (“FA22”).
FA22 made significant changes to the R&D Tax Credit as detailed in previous posts here, here and here. When preparing your 2022 claims you need to take account of these changes. This includes deciding on whether to apply the new (post-FA22) rules and/or to accelerate prior year instalments under the transitional rules. This in turn will determine whether your 2022 CT1 submission needs to be accompanied by the submission of a “Specified Return” via MyEnquiries. The latest updates cover these and other impacts of the FA22 changes and therefore are a welcome addition for claimant companies looking to navigate the new rules.
Also, a new section has been added, confirming that cloud computing costs can be considered eligible expenditure on R&D where the usual criteria are met (e.g. the costs are incurred wholly and exclusively in the carrying on of qualifying R&D activities).
The updated Part 29-02-03 of the Tax and Duty Manual is available on Revenue’s website at www.revenue.ie. In addition, a copy can be downloaded below.