30TH APRIL, 2018

Benefits of A Self-Service R&D Tax Credit Portal

For small businesses, the best approach to making an R&D tax credits claim is to work with a specialist R&D tax credit consultancy firm that can provide targeted technical expertise and deliver an exceptional level of service, as smaller companies may feel overwhelmed by the HMRC definition of R&D and may not have the internal resources available to do further research on claiming R&D tax credits.

To further help businesses seeking to claim their R&D tax credit entitlement, the London- and East Midlands-based R&D tax consultancy firm Myriad Associateshas developed an additional option for SMEs seeking to claim their R&D tax credit entitlement: Tax Cloud, an R&D tax credit claim portal.

Tax Cloud offers your small businesses a guided, cost-effective, online tool to help you through the R&D tax relief claim process. After a straightforward sign-up process, Tax Cloud automatically verifies your details through Companies House. You then use the Tax Cloud forms to provide information about your R&D projects and their costs. Myriad Associates’ expert consultants review and support your claim by giving you feedback and recommendations to ensure that you’re on the right track. Once you’ve finished your claim, Tax Cloud takes your project details and creates an R&D tax relief claim report that’s ready for you to submit to HMRC.

What are the benefits of a self-service R&D tax credit portal?

A self-service R&D tax credit portal like Tax Cloud offers you the benefits of working with a leading R&D tax relief specialist at a reduced price. These platforms are designed with small businesses in mind, providing you with a guided approach to making your R&D tax credit claims. You can work through the process at your own pace, and seek help from technical specialists, cost accountants, and tax experts anytime you have any questions.

The fee for a successful claim through Tax Cloud is 3.5% of the company’s R&D expenditure, which is equivalent to 10.4% of the corporation tax savings for a loss-making business, and 13.5% of the corporation tax savings for a profit-making business. Typical R&D tax consultancy rates are around 20% of any tax credit payable or refund of corporation tax. There is no upfront fee for using Tax Cloud; users only pay after their R&D tax credits claim has been successfully processed by HMRC.

However, although more UK SMEs are claiming R&D tax credits than ever before, many companies are still missing out. Almost any company in any industry is eligible for R&D tax credits, so long as the business is undertaking development activities to seek to achieve an advancement in science or technology. Many businesses are doing this in their day-to-day work, from software development and engineering companies to firms working in food production.

If your company is taking a risk by innovating, improving, or developing a product, process, or service, then you can quality for R&D tax credits. The project must contain a level of technical uncertainty for a competent professional, so if you faced questions that left you and your team scratching your heads to find a solution, that’s a good indication that qualifying R&D activities were taking place.

Is your business eligible for the SME scheme?

  • For a company to be regarded as an SME it must have a group headcount of below 500 staff and meet at least one of the following: a turnover of below €100 million or gross assets of less than €86 million. A large company is any company that exceeds the SME thresholds.
  • From 1 April 2015, the relief SMEs can receive has increased to 230% on their qualifying R&D costs. Loss-making companies can, in certain circumstances, surrender their losses in return for a payable tax credit.

How do R&D tax credits work?

Whether you make your R&D tax credits claim directly to HMRC, with a specialist advisor, or through a portal service such as Tax Cloud, there are a few areas to understand before you make a claim.

What activities can be included in an R&D tax credits claims?

The following activities would be considered eligible for R&D tax credits:

  • defining technical objectives;
  • identifying uncertainties;
  • feasibility studies;
  • reviewing new and competing technologies;
  • analysing, designing and developing the technology;
  • producing technical specification or other documents to explain and support the R&D project and advancement;
  • testing the product, process or software; and,
  • planning and managing projects.

In addition, certain indirect support activities may qualify for R&D tax relief, such as:

  • administration, finance, and personnel services specifically required to support R&D activities; and,
  • training to support R&D.

What costs are eligible for R&D tax credits?

The main areas of costs that can be claimed are:

  • Staff costs (gross pay, employer’s National Insurance contributions, employer’s pension contributions, and reimbursed expenses)
  • Agency workers/externally provided workers
  • Sub-contractors/freelance workers
  • Software licence costs
  • Consumable items (materials or equipment used or transformed by the R&D process)

You can use a R&D tax credits calculator to see an estimate of your corporation tax savings based on your spending on your R&D projects.

Tax credits are a powerful way of supporting innovation in the UK economy and are extremely beneficial to companies of all sizes, particularly smaller enterprises, where cash flow can be a critical issue. With several options available for SMEs seeking to claim their R&D tax credit entitlement, including self-service portals such as Tax Cloud, there’s no better time to make your first R&D tax credit claim.

Barrie Dowsett, ACMA, GCMA
Author Barrie Dowsett, ACMA, GCMA CEO, Tax Cloud
Latest posts
14TH OCTOBER, 2019 Flight Shame Has Landed - But Could R&D Be The Aviation Industry's Ticket To Greener Travel?
10TH OCTOBER, 2019 What power does HMRC have over my R&D Tax Credit payment?
1ST OCTOBER, 2019 Why Do Some Applications For R&D Tax Relief Fail?
24TH SEPTEMBER, 2019 R&D Tax Credits: What happens if I need to switch from the SME scheme to the RDEC scheme, or vice versa
17TH SEPTEMBER, 2019 What financial help is available in the UK for entrepreneurs?
10TH SEPTEMBER, 2019 What consumables can be claimed under R&D tax relief?
3RD SEPTEMBER, 2019 How long does it take for HMRC to make a decision on an R&D Tax Credit claim?
29TH AUGUST, 2019 What is the most efficient way of submitting an R&D Tax Credit claim?
21ST AUGUST, 2019 Are businesses in Wales getting the most out of the R&D Tax Credits scheme?
13TH AUGUST, 2019 How can companies find extra money to help prepare for a No Deal Brexit?
6TH AUGUST, 2019 Quick Guide to R&D Tax Reliefs in Engineering
31ST JULY, 2019 Claiming R&D tax credits in the healthcare sector
26TH JULY, 2019 How can businesses make R&D investment a priority?
18TH JULY, 2019 How will Brexit affect R&D tax credits?
12TH JULY, 2019 Tax Cloud launches in Ireland
5TH JULY, 2019 How to claim a critical tax boost for your SME
5TH JULY, 2019 R&D Tax Credits made simple and affordable
28TH JUNE, 2019 Why are SME’s missing out on R&D tax relief
14TH JUNE, 2019 Is my SME eligible for R&D Tax Credits?
3RD JUNE, 2019 Why Use an R&D Portal Over an R&D Advisor?
24TH MAY, 2019 How SMEs Can Benefit from R&D Tax Credits
14TH MAY, 2019 Charities Benefit Following Tax Cloud's Successful Show at Accountex
25TH APRIL, 2019 Tax Cloud's Most Innovative Companies 2019
12TH APRIL, 2019 Accidental Innovation - Tax Cloud's Top 8
5TH APRIL, 2019 A Practical Guide to R&D Tax Relief at Accountex 2019
27TH MARCH, 2019 What Software Projects Qualify for R&D Tax Credits?
15TH MARCH, 2019 3 Automotive Innovations To Look Out For In 2019
1ST MARCH, 2019 What is Research and Development in Business?
22ND FEBRUARY, 2019 Growth hack: Tap Into R&D tax credits
15TH FEBRUARY, 2019 Beyond R&D Tax Credits - public funding for your innovative start-up
1ST FEBRUARY, 2019 5 Steps To Deliver An Optimised R&D Tax Credit Claim
25TH JANUARY, 2019 Top Tax Cloud FAQs
16TH JANUARY, 2019 What Projects Qualify for R&D Tax Credits in The Medical Industry?
11TH JANUARY, 2019 Accounting practices are generating fee rates of £325/hr
2ND JANUARY, 2019 R&D Tax Credits - It's Not As Difficult As You Think
14TH DECEMBER, 2018 4 Ways To Determine If You Qualify For R&D Tax Credits
26TH NOVEMBER, 2018 What Projects Could Be Eligible For R&D Tax Relief in Manufacturing?
2ND NOVEMBER, 2018 How To Know If Your Business Is Entitled To R&D Tax Credits
25TH OCTOBER, 2018 Why Isn’t The Agricultural Industry Claiming R&D Tax Credits?
10TH OCTOBER, 2018 Is Your Business Eligible For R&D Tax Relief?
3RD OCTOBER, 2018 The Most Common Mistakes People Make With R&D Tax Credits
18TH SEPTEMBER, 2018 #1 R&D Tax Claim Portal ‘Tax Cloud’ launches Xero Integration
14TH SEPTEMBER, 2018 What To Look For In An Online R&D Tax Credits Claim Portal
7TH SEPTEMBER, 2018 5 Ways To Grow Your Accountancy Practice
31ST AUGUST, 2018 Common Pitfalls To Avoid While Claiming R&D Tax Credits
24TH AUGUST, 2018 How Far Back Can I Claim R&D Tax Credits?
17TH AUGUST, 2018 Should I Use a Specialist or My Accountant For My R&D Tax Credits Claim?
27TH JULY, 2018 3 Things To Consider When Making An R&D Tax Credits Claim
13TH JULY, 2018 R&D Tax Credits – Don’t Fall Through The HMRC Trapdoor
25TH JUNE, 2018 Tax Cloud Shortlisted for Innovation of the Year
30TH APRIL, 2018 Benefits of A Self-Service R&D Tax Credit Portal
13TH MARCH, 2018 R&D Tax Credits Platform Tax Cloud Celebrates 100 SME’s Seeking Expert Support
5TH FEBRUARY, 2018 How R&D Tax Credits Can Help Your Startup Grow
29TH JANUARY, 2018 Getting the Best Returns From Your R&D Tax Credits Claim
22ND JANUARY, 2018 Introducing: The Tax Cloud Partner Programme
18TH JANUARY, 2018 What Costs Can You Claim Through R&D Tax Credits?
9TH JANUARY, 2018 Common Misconceptions About R&D Tax Credit Claims
5TH DECEMBER, 2017 R&D Tax Credits Made Simple For Small Businesses
20TH NOVEMBER, 2017 The 3 Things You Need To Consider When Making An R&D Tax Credits Claim
Popular Tags
Start your Tax Cloud claim now Discover if you qualify and ensure your R&D tax claim is maximised. Get started
Powered by Myriad Logo

Myriad Associates helps businesses maximise tax reliefs and secure R&D grant funds. We specialise in R&D Tax Credits, Video Games Tax Relief, Innovate UK grants, Horizons 2020 grants, and Research and Development Capital Allowance Claims.

  • Submitting R&D tax claims since 2001
  • 100% success rate
  • Over £100m claimed and counting
  • Industry leading specialists
  • In-house technical, costing and tax experts
  • Member of the Research and Development Consultative (RDCC) committee

Meet some of the team behind Tax Cloud

Barrie Dowsett Barrie Dowsett ACMA CGMA Chief Executive Officer
David Farbey David Farbey MA, FISTC, FRSA Technical Consultancy Director
Deborah Chapple Deborah Chapple ATT Corporate Tax Director
Lauren Olson Lauren Olson MA, MISTC Senior Technical Consultant