29TH SEPTEMBER, 2020

It Doesn’t Matter Where Your R&D Adviser Is Based. Here's Why

Why limit your search?

Companies looking to claim research and development (R&D) Tax Credits will typically ask themselves “How do I know which R&D Tax Credit specialist to use?”

Many people spend ages searching locally for R&D tax specialists in Manchester, or R&D tax consultants in Wales or Scotland. Often it’s tempting to go with a firm nearby so it’s easy to drop by in person. But with an R&D Tax Credits portal like Tax Cloud, in-person meetings are rapidly becoming a thing of the past. Plus with COVID-19 social distancing here to stay, many people are looking further afield for R&D specialists who will work with them remotely. This of course means it doesn’t matter where in the country they’re based.

Why limit yourself to local R&D tax consultancies when you could search across the UK?

What are R&D Tax Credits? And which companies are eligible?

Has your company taken on any innovative activities recently with a view to advancing technology or science? Was a level of financial risk involved? Then the project could well qualify for R&D Tax Credits - even if the company made a loss, or if the project ultimately failed.

R&D Tax Credits were launched back in 2000 by the UK government as a Corporation Tax incentive. The scheme means companies can claim back up to 33% of their R&D costs, with larger companies receiving up to 10% of their R&D expenditure back under RDEC.

For profit-making companies the money is offered as a reduction in their Corporation Tax. And for those making a loss, it can be received as a lump sum payment instead, tax free. The rebate can then be spent on anything, including taking on extra staff, buying new equipment, or reinvesting in further R&D work.

So why use R&D tax specialists at all?

Think of it this way. When you head off to do your weekly shop you’ll likely head to somewhere like Tesco or similar where everything can be bought in one place. Business accountants are similar, in that one firm will offer a range of services and deal with all of a company’s tax and financial affairs. For general accounting this works well, but R&D tax relief is extremely specialised and niche. It requires up-to-date, professional advice - and this is where consultancies like Myriad Associates are essential.

R&D Tax Credit specialists are additional to your usual, trusted business accountant - they work alongside them, and not as a replacement. When it comes to making a claim for R&D Tax Credits, specialists will offer bespoke support to guide you through the application process and maximise the amount you can claim. Yes it may seem initially cheaper to go it alone, or to use your regular accountant, but long term that decision will likely cost you dearly. This is because there’s a higher chance your claim will be rejected by HMRC, and even if it’s accepted how do you truly know you’ve claimed all you’re entitled to?

At Tax Cloud particularly, we have spent many years working alongside HMRC so that claims can be handled faster. Additionally, if HMRC needs further information about a claim or wants to investigate anything, R&D tax advisers really come into their own. This is because their services are offered based on success. General accountants may well not be able to offer the same level of detailed support.

But what are the benefits of using a self-serve R&D tax relief portal?

There are many, such as:

Claims can be made remotely

And at a time to suit you. Simply log on from any device and make your fully guided and supported claim. So no more searching for R&D Tax Credit consultants in Leicestershire, or R&D tax specialists in Surrey. And of course, no worries about social distancing.

You’ll save a lot of time

With portals such as Tax Cloud, the process can be much slicker than the full service option. This makes it ideal particularly for companies with relatively straight-forward tax affairs, or those who have claimed R&D Tax Credits before. Tax Cloud guides you through the process and means you can work on your claim at a pace to suit you. It also provides the chance to ask questions or receive advice from tax experts, technical specialists and accountants at any point along the way.

Using an R&D portal costs less

Many tax consultancy firms will take a cut of around 20% of any tax credit or Corporation Tax refund you receive. However, when a claim is made using a portal, this drops to around 5% (in our case, it drops as low as 2.5%). So there’s more in your pocket for future R&D activities.

Claiming R&D Tax Credits is far more complex than other tax-related tasks

Compiling an R&D Tax Credits claim that stands any chance of success is far trickier than, say, filling in a tax return. Detailed records need to be presented for every piece of expenditure, and everyone involved in the R&D project needs to have an input. There are also many facets of R&D tax claims, but the beauty of using a portal means everything is in one place.

If you’re a UK-based company and believe you qualify for this highly generous incentive, head over to Tax Cloud and see our free demo. Don’t forget, if you already use Xero as your accounting software, it will integrate perfectly with Tax Cloud to make claiming even easier.

Try the Tax Cloud portal today

The aim of the Tax Cloud portal is simple - to make it easier, quicker and cheaper for UK businesses claiming R&D Tax Credits. Since its launch in September 2017, Tax Cloud has helped hundreds of SME’s particularly to achieve the money they’re owed. No fuss, no stress - and no traipsing around to any offices.

If you would like to know more about R&D Tax Credits, working with R&D specialists or anything we’ve addressed in this article please do contact our team or call 0207 360 4437.

Barrie Dowsett, ACMA, GCMA
Author Barrie Dowsett, ACMA, GCMA CEO, Tax Cloud
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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
Lisa Waller Lisa Waller CTA, ACCA R&D Tax Manager
Lauren Olson Lauren Olson MA, MISTC Senior Technical Consultant