How Tax Cloud can mean quick cash for your company

Now more than ever, companies across Ireland are looking for ways to boost their cashflow in these tough economic times. R&D Tax Credits claimed through the Tax Cloud portal is the perfect way to do this.

What are R&D Tax Credits?

The R&D Tax Credits scheme works by offering a sizeable credit to reflect a company’s research and development costs where a technological or scientific uncertainty was addressed. Typically this would be if a company created a new product, process or service, or substantially advanced/upgraded an existing one.

The Irish government is keen to encourage growth and innovation as a way to strengthen the economy which is what makes the scheme so valuable. Indeed, it’s open to any limited Irish company of any size, and as much as €37.50 can be claimed for every €100 worth of R&D expenditure.

You can find out more about how to apply, who is eligible and what an application involves on our R&D Tax Credits page.

How does the Tax Cloud portal help with making a claim?

The Tax Cloud portal is a quick, simple, great value way to put together a claim for R&D Tax Credits. It allows you to enter in your own figures and give details of your company’s R&D project in an accurate, concise way, identifying eligible costs that you may not have already considered. This means you can be sure you’re receiving all the credit you’re entitled to.

Tax Cloud was created especially for this purpose by the R&D tax experts at Myriad Associates. Our Dublin and UK-based teams are made up of R&D tax consultants and specialists who are on hand at every stage to support you. Plus we will check your claim with a fine tooth comb before it’s sent off to Revenue. More information about the Tax Cloud and how to get in touch are at the bottom of this page.

So what can companies use their new-found cash for? Well, anything basically! However, in our experience most businesses tend to do the following:

Reinvest it into another innovative R&D project

Innovative R&D projects are essential for a company to survive and thrive long term. Once a project is complete and the credit has been applied, we’ve found many organisations then begin a new one. Some will again create a new product where last time they designed a process for example, whilst others may look to add new and exciting upgrades to something either themselves or another company have already marketed.

Pay off debt

Most companies have debt in some form or another, either due to supplier payments, loans, rent or credit for something else. In these difficult times, some businesses choose to pay off that debt with their R&D Tax Credit award.

Employ more staff, including subcontractors and freelancers

Projects need staff - sometimes permanent, sometimes temporary and sometimes just casual. This means that companies not only have to bear the cost of actually paying them, but also of hiring and training.

Pay dividends and wages

Any money received back through the R&D Tax Credits scheme can also be spent on paying salaries and other financial commitments like overtime and expenses. Some companies also decide to pay director dividends, or provide cash incentives and bonuses to staff.

Move to another site

Large R&D projects may mean a company needs to either move to a bigger site or take on one (or more) additional sites. Often this is because specialist manufacturing facilities are required, or because it needs more space. Cash generated from R&D Tax Credits can go a long way in facilitating this.

Improve the company's online presence

Nowadays people expect a company to have a strong online presence. Apps are becoming the norm, and websites must be easy to use for the customer. They need to raise brand awareness and act as your virtual shop front. Costs involved in design, testing and launching such technologies can be pricey, especially if you don’t already have the expertise in-house. Again, this is where R&D Tax Credit money can prove incredibly useful.

Why is it so important to work with R&D tax specialists?

R&D Tax Credit claims need to be made within 12 months of the end of the accounting period during which the R&D work occurred - and Revenue heavily scrutinise each one.

In order to maximise your R&D claim (and avoid any unwanted Revenue attention), we recommend using the Tax Cloud portals to ensure you've got everything covered. As the Tax Cloud process works in a step-by-step way, it’s a lot quicker and easier – with a much higher chance of success – than going it alone.

What else makes the Tax Cloud portal stand out from the rest?

The Tax Cloud portal is free to sign up to and offers a clear, fixed pricing structure. For claims in excess of €200k the fee is 5% and up to €200k it’s 10%. There’s also no upfront fee as we only take payment once Revenue has processed your claim.

Worried you may not be eligible after all? Don’t worry, there’s no charge! We also don’t charge if you need our help in answering any questions from Revenue Commissioners along the way. On top of that, we can prepare your amended Company Tax Return (CT1) for free as part of our claim process.

All our services are delivered online, so there’s no need to come to our offices. Our specialists are also entirely dedicated to your claim, and as we deal solely in the area of R&D tax issues we’re extremely competent in our field. Additionally, there’s no minimum contract period. Plus, Tax Cloud is entirely cloud-based with nothing to maintain or download, and even integrates with Xero.

Ready to get started?

Try the Tax Cloud portal for businesses today or feel free to contact us so we can call you back. Alternatively, drop us a line on +353 1 566 2001 - we’re here to help.

Author Barrie Dowsett, ACMA, GCMA CEO, Tax Cloud