What are the benefits of accountants working with R&D tax experts?

Once a business has found a good, reliable accountant they tend to hang on to them for dear life. Of course, vital trust between a company and its accountant can take years to build, but that certainly doesn’t mean you can’t bring in another expert when it comes to an R&D tax claim. Think of it as something like visiting your trusty GP who you’ve known for years and then being referred to a specialist; essentially they work together, not “instead of” each other.

An accountant that’s worth even a fraction of their weight in gold will know your company inside out and can provide essential advice regarding all sorts of financial matters, like how to stay the right side of Revenue and how to promote growth. Remember that this relationship is important and is not under any threat if you decide to work with an R&D expert like Tax Cloud/Myriad Associates. R&D Tax Credits is a really specialised area with many pitfalls so expert knowledge is crucial. Also, the Tax Cloud portal deals solely with R&D Tax Credits and nothing else.

So what exactly are R&D Tax Credits?

The R&D Tax Credits scheme has been around in Ireland since 2004 and is a Revenue-backed tax incentive designed to help Irish companies invest in innovation. It works by offering your business an opportunity to get back a percentage of its R&D expenditure, either as tax credits or as a lump sum.

If a business has carried out any research and development, particularly over the last couple of years, then it may well qualify for R&D Tax Credits, which can cut down your Corporation Tax bill or increase your taxable losses.

Why is it so important to get right?

Let’s face it, no-one wants to miss out on a tax rebate. And the beauty of R&D Tax Credits is they apply to pretty much any type of innovation in any industry or sector, no matter the size or profitability of your company.

The credit itself is calculated at 25% of applicable expenditure and is designed to reduce a company’s Corporation Tax (CT). If a company has offset both current and previous years’ CT liabilities, it can apply for a credit which is paid in instalments.

Companies may be able to claim R&D Tax Credits if:

• They pay Corporation Tax in the Republic of Ireland
• They aren’t eligible for an R&D tax deduction within another country
• Their R&D activities took place either in the Republic of Ireland or the European Economic Area (EEA)

If you miss out, you could certainly be quite a lot of money down!

What qualifies as an R&D activity in the Republic of Ireland?

To be eligible for R&D Tax Credits, businesses must undergo research and development projects that meet the following criteria. The R&D work must:

• Be in the field of technology or science
• Include investigative, systemic or experimental work
• Be in basic or applied research
• Seek to make scientific or technological advancement
• Look to resolve a technological or scientific uncertainty
• Involve experimental development

Can’t I just submit an R&D claim myself?

Of course you can. You’re totally free to put together and submit your company’s R&D Tax Credit claim yourself if you want to. All the guidance and pointers can be found on Revenue’s website (if you’ve got the time and inclination to plough through it all that is). Be warned though, it’s a far more tricky process than filing a tax return. In fact it’s something that even many accountants shy away from as there’s a lot of room for error, which is where R&D tax claims portals like Tax Cloud can be incredibly useful.

What difference does the Tax Cloud portal make?

The Tax Cloud portal was developed the R&D experts at Myriad Associates as a way of putting together an accurate, optimised R&D tax claim step by step. With our team on hand throughout, either yourself or your accountant will be guided in adding in all the relevant figures as well as creating a top-notch R&D technical narrative.

Using the Tax Cloud portal is also much less costly than the full consultancy services as business owners or their accountants are completing the claim themselves, albeit fully guided. This is reflected in the low fee of either 5% of 10% of the claim value, which is only payable once the claim is complete.

At the end, once the claim is thoroughly checked, the Tax Cloud portal will send it to Revenue on your behalf. It’s essentially all about the removing the guesswork and achieving the R&D Tax Credits your company deserves.

What about using the company accountant I already have?

Many accountants don’t like taking on R&D tax work as it’s known for being incredibly detailed and niche. This means it can take up an awful lot of their time and money, and getting it wrong can be incredibly costly. However, in our experience most accountants are very happy to use the Tax Cloud portal for their client’s claim. They know that we’re not about to poach other work because this is only about R&D. They also understand that it can mean a lot of financial benefit for their client which in turn benefits both them and the wider economy.

The Tax Cloud portal means you can rest easy when it comes to R&D Tax Credits

Whilst many accountancy firms have some dealings with R&D Tax Credits, here at Tax Cloud we specialise entirely in the R&D claims field. This means that you can sleep easy knowing that anything we’ve advised you is completely up-to-date, accurate and gives you the best chance to maximise your claim.

Sign up to Tax Cloud today to begin your R&D claim. Or if you’re still not sure, why not book a free demo?

With separate service offerings for both businesses and accountants, using Tax Cloud is a fast and accurate way of claiming R&D Tax Credits for companies in the Republic of Ireland.

For more information or further advice, feel free to call us on +353 1 566 2001 or use our contact page and we’ll get right back to you.

Author Barrie Dowsett, ACMA, GCMA CEO, Tax Cloud