27TH FEBRUARY, 2020

What Advantages Does Tax Cloud Offer Irish Businesses?

Research and development (R&D) Tax Credits are a government tax incentive which is aimed at encouraging companies to spend more on R&D, therefore boosting investment in innovation. The incentive works by allowing a company to claim a portion of their R&D expenditure back, either as a relief on their Corporation Tax bill or as a lump sum payment. But what are the benefits specifically of using the Tax Cloud portal to make a claim?  Here we’ll explain all about what it is, and how it can help your Irish company make the most effective claim possible.

R&D Tax Credits: A brief outline

Offered by the Revenue, R&D Tax Credits work by generating a 25% tax credit (in addition to the standard 12.5% deduction) for offsetting against Corporation Tax. This effectively means that R&D Tax Credits can bring down the costs involved in innovative projects by as much as 37.5%.

This type of tax relief is primarily for use against the current year’s Corporation Tax bill, or the one immediately prior. However, for very new companies or companies that are loss making, a cash lump sum may be received instead.

As you can see, the scheme is very generous and all Irish companies of all sizes and in all industries can apply. The key point is that you have to have undergone technological or scientific research that benefits your general field and not just your company. You also have to have created a new product, process or service, or have reasonably improved one already in existence. The project must have attempted to tackle a scientific or technologic problem and be really innovative in order to qualify for R&D Tax Credits. It must have involved risk, and the problem it attempted to solve must not be easily solvable by a person already working in the field. There is no minimum claim amount.

What costs will qualify for R&D tax credits?

There are numerous different types of R&D expenditure likely to attract an R&D tax relief claim. However the main ones are:

  • Staff costs, including salaries, reimbursed expenses, wages, overtime, employer’s NIC payments and pension contributions
  • Certain types of specially developed software
  • Payments made to those volunteering for clinical trials, as well as to freelancers, agency staff and subcontractors
  • Costs relating to overheads and consumables, like water, fuel and power (but only the proportion which has been specifically used in R&D work)

How does Tax Cloud work, and what are the benefits?

Putting together a claim for R&D Tax Credits is not particularly easy and there are many opportunities to make mistakes. Any errors made in calculating your entitlement, or in the details included in your narrative, are likely to bring about a query from the Revenue. If after their questions have been answered the Revenue still isn’t satisfied, it could launch an investigation into your company’s broader tax affairs. It’s not fun, it’s very stressful and often very expensive.

This is why we highly recommend using the services of R&D experts such as ourselves at Tax Cloud. It’s simple to use and can give you a clearer idea of your eligible costs.

It works in four simple steps:

1) To get started, simply give us the name of your company and a few other details (which we’ll then verify).

2) The next step is to enter the details of the R&D project work your company has recently undertaken, together with the expenditure made.

3) Once this is done, our specialist team of R&D advisors and accountants will review your claim before providing feedback and making recommendations if necessary.

4) Finally, Tax Cloud will use your project descriptions and costs and devise a R&D tax claim report unique to your company. Tax Cloud will then submit this report to the Revenue on your behalf, and if any questions/issues are raised we’ll deal with them too.

Don’t forget to also try the Tax Cloud R&D tax credit calculator

It’s a quick and easy way to see at a glance what corporate tax savings you could benefit from, without formally submitting a claim.

Simply start by entering the amount of R&D expenditure you incurred during your last accounting in relation to staff costs, plant and machinery and overheads. Next, add in the amount during the same period you spent on R&D costs pertaining to outsourced third parties. Finally, enter your R&D expenditure on Universities and Institutes of Higher Education. The calculator will then produce a good estimate of your claim value based on the figures you put in. It's no substitute for a more in-depth claim, but it gives an accurate idea none-the-less.

Click here to use our free R&D calculator to calculate your potential claim.

Why should I use Tax Cloud Ireland specifically?

Tax Cloud Ireland is aimed specifically at Irish businesses, and offers a unique approach to R&D tax credits claiming. It can not only save you a substantial amount of money, but a lot of time and hassle too. Boasting a whole range of handy features, it essentially means you can make an application anywhere at any time as it’s completely online. There’s no face-to-face requirement, and you’re still getting the most up-to-date, professional advice.

Another big plus in using the Tax Cloud portal is that the fees are low and there’s nothing to pay upfront. There’s also no minimum contract period and it integrates with Xero too. You’ll work with a highly experienced, dedicated R&D tax specialist, and can rest assured your claim is fully checked before being submitted to the Revenue. This in turn drastically reduces the chances of a Revenue enquiry.

Get in touch with the Tax Cloud team today

The Tax Cloud portal for businesses offers a highly advanced, bespoke solution for Irish companies looking to make an R&D Tax Credits claim.

Myriad Associates - the name behind Tax Cloud UK - consists of a team of R&D accountants and specialists also on hand to help you generate a fully optimised, accurate claim. Our 100% success rate also means you can rest assured of no mistakes, and no problems with the Revenue.

Call us now on +353 1 566 2001 or use our contact page and we’ll be pleased to get back to you. You can also find out more about R&D Tax Credits on our R&D Tax Credits webpage.

Barrie Dowsett, ACMA, GCMA
Author Barrie Dowsett, ACMA, GCMA CEO, Tax Cloud
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Myriad Associates helps businesses maximise tax credits and secure R&D grant funds. We specialise in R&D Tax Credits, Enterprise Ireland grants.

  • 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