Today we’re speaking with Brenda Donohoe, Regional Sales Director at ABGi Ireland, about improvements to the R&D tax credit payment schedule.

Q | Hi Brenda, tell us what’s changed in terms of payment timing?

Well, the big change here is that the Finance Act 2025 increased the first-year payment threshold from €75,000 to €87,500.

So, under the revised three-instalment model, companies can now receive up to €87,500 in year one. For credits up to that level, the full amount can effectively be paid in the first year rather than spread across three years.

Q | Why does this matter for SMEs?

First and foremost, it comes down to cash flow.  For early-stage or scaling companies, waiting 3 years for the full benefit was often challenging. Faster access to the credit means more immediate support for hiring, equipment, subcontractors or additional development work. It also makes smaller R&D projects more attractive, because the benefit arrives sooner.

Q | Are there any deadlines businesses need to watch?

Yes, absolutely, and this is critical!

Claims must be made within 12 months of the end of the relevant accounting period via the CT1 return. Miss that deadline and the claim is lost, no matter how strong the underlying R&D activity is.

Companies also need to factor in the pre-notification requirement where it applies. First-time claimants, or those who haven’t claimed in the previous three accounting periods, must notify Revenue at least 90 days before filing their R&D claim.

In practical terms, for companies with a December year-end, that means your claim process really needs to be underway by June if you intend to claim for FY25. Leaving it too late can mean missing the window altogether.

Q | What should companies be thinking about now?

I’d suggest modelling the cash-flow impact in advance rather than treating it as an afterthought. This isn’t just about receiving money faster; it’s about deciding how that timing fits into your wider tax and funding strategy. Don’t leave it until filing week to think about how it affects your business. A little forward planning makes a big difference.

We hope Brenda’s insights have been helpful – If you would like to understand how the new threshold could improve your cash position, please get in touch with ABGI Ireland.  We are one of Ireland’s trusted and leading R&D consultancies, with a proven track record of supporting robust, compliant claims. We work alongside businesses and their accountants to model the cash-flow impact of different claim sizes, align claim timing with pre-notification requirements, and ensure you make the most of the accelerated first-year payment.