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, trust between a company and its accountant is vital and 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 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 the 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. This is primarily because it’s a really niche area with many pitfalls so expert knowledge is vital. Also, R&D advisors such as ourselves want to work alongside you and your accountant as we solely provide help with R&D tax credits and their associated schemes - nothing else.
So what exactly are R&D Tax Credits?
R&D Tax Credits were unveiled in the year 2000 and are a Revenue-backed tax incentive designed to help Irish companies invest in innovation. They do this 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 12 months, 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 Tax 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 research and development activity 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. All the guidance and pointers can be found on the 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 many accountants shy away from as there’s a lot of room for error, which is where R&D tax advisors like ourselves can be incredibly useful.
What difference does an R&D expert make?
An R&D expert will have a detailed understanding of the regulations and guidelines surrounding an R&D Tax Credit application as well as how to apply them. We can work to identify each of the projects that can be considered as Research and Development, as well as help to clarify the expenditure associated with each one. Additionally, we will help you draw up a strong narrative to accompany your application so that Revenue can work through your claim with ease.
R&D tax advisors are dedicated to the cause so will dedicate their time exclusively to your R&D Tax Credits application. We’ll also work efficiently with your company’s accountant to collate all the relevant financial information, meaning that your valuable time can be spent focussing on running your company.
What about using the company accountant I already have?
Many accountants don’t like taking on R&D tax credit 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 work alongside us on their client’s claim. They know that we’re not about to poach other work because all we’re interested in is dealing with 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.
Generally speaking, all we need is for your accountant to provide us with some basic financial information, including whether you’ve had any other government grants and how they’ve been spent. Then we’ll do all the hard work!
Who should I turn to?
When it comes to putting together and submitting a successful R&D Tax Credit claim for the Revenue there are quite a few hoops to jump through. The process isn’t always straight forward and getting it wrong can cost you dearly in both time and money.
Whilst many accountancy firms have some dealings with R&D tax credits, here at Tax Cloud (part of Myriad Associates), 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 to today to begin your R&D claim. With seperate 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
- 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