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Top Tax Cloud FAQs

Since the portal was launched, the Tax Cloud team regularly receives questions from businesses in Ireland looking to maximise their R&D Tax Credit claims whilst avoiding the hefty fees paid to consultants.

In our latest post, we highlight some of the top questions we get asked when customers enquire with us.

1) What are R&D Tax Credits?

If a company spends money on research and development activities, these activities may qualify for R&D Tax Credits. The credit is calculated at 25% of qualifying expenditure and is used to reduce a company’s Corporation Tax (CT). Where a company has offset current and previous years’ CT liabilities, it may apply for a credit payable in instalments.  Qualifying R&D expenditure will generate a 25% tax credit for offset against corporate taxes in addition to a tax deduction at 12.5%.

This means that companies undertaking qualifying R&D can claim a refund from the Revenue of €37.50 for every €100 worth of R&D expenditure. So, effectively, the R&D tax credit reduces the real cost of R&D by up to 37.5%. Generous indeed!

2) Is my business eligible for R&D Tax Credits?

Many businesses don’t realise that they are undertaking eligible qualifying activities. It is not uncommon for their accountants to forget to tell them about R&D Tax Credits or even to tell them that they don’t qualify.

If your technical lead (the R&D manager, lead engineer, or lead developer) is struggling to overcome the technical challenges of your project - if they are scratching their head wondering how to proceed, or losing sleep worrying about the technical uncertainties they face - your project will almost certainly qualify for R&D Tax Credits.

A company may qualify for the R&D Tax Credit if:

• It is within the charge of CT in Ireland
• It carries out qualifying R&D activities in Ireland or the European Economic Area (EEA)
• The expenditure does not qualify for a tax deduction in another country.

3) What counts as R&D?

The government’s definition of what is classed as research and development is relatively broad. The key phrase in their definition is that the R&D project must from the outset aim to make a technical advancement in a product, process or software over and above what is already available. The project needs to challenge your experienced team.

To qualify for R&D Tax Credits, a company must carry out research and development activities that meet the following conditions. The research and development activity must:

• Involve systemic, investigative or experimental activities
• Be in the field of science or technology

It must also involve one or more of these categories of R&D:

• Basic research
• Applied research
• Experimental development
• Seek to make scientific or technological advancement
• Involve the resolution of scientific or technological uncertainty.

No matter the size of your business, as long as your company is attempting the above then you could be carrying out an eligible R&D activity.

4) What costs qualify for R&D Tax Credits?

The main areas of costs that can be claimed are: -

• Employee/staff costs (gross pay, employer's NI and employer's pension contributions)
• Agency workers (externally provided workers)
• Subcontractors/freelancers
• Employee secondment
• Royalty payments
• R&D carried on as part of an existing trade
• Consumable items (heat, light and power, and materials and equipment used or transformed by the R&D process)

However, this is by no means an exhaustive list which is where our experts can guide you on the specifics of your own claim.

5) How much could I claim?

Obviously this is pretty unique to your specific business and the R&D work it has carried out. However, to work out how much you could be eligible to claim, why not enter your figures into our free R&D tax calculator.

6) How does Tax Cloud work?

The Tax Cloud portal was developed by the expert R&D tax team at Myriad Associates. With over 10 years in the business, we know what works and what doesn’t.

Follow our four easy steps to make your R&D Tax Credits claim using Tax Cloud.

Step 1) Sign up with your company name and we will automatically verify your details.

Step 2) Add your R&D projects, activities and costs in the Tax Cloud portal.

Step 3) Myriad Associates (the creators of Tax Cloud) provide their specialist consultants to review and support your claim by providing feedback and recommendations

Step 4) Tax Cloud takes your project descriptions and costs and creates the R&D tax claim report. Myriad will submit this report to Revenue on your behalf and, if Revenue then have any questions, will answer them.

7) Why would I use Tax Cloud rather than my accountant or a specialist?

R&D tax claims are extremely niche, and even the most experienced of general accountancy firms can struggle. We’re not for one minute suggesting you ditch your usual accountant altogether though - far from it. Think of this as an additional partnership alongside them.

As far as Tax Cloud is concerned, there’s a whole host of features that benefit you and your business.

Tax Cloud Features include:

• Lower fees (which are only paid on success with nothing up front)
• Focused expertise in R&D claims
• Online service, no meetings
• Dedicated specialists in SME R&D claims
• Expert review of all aspects of a claim
• Quality service
• No minimum contract period
• Integration with Xero

8) How much does it cost to use Tax Cloud?

As mentioned, there’s nothing to pay up front when you sign up with Tax Cloud and our fees are only payable once the award has been paid. This means there’s absolutely no financial risk for you and potentially everything to gain for your company.

Ready to try out the Tax Cloud portal?

To find out more about how the Tax Cloud portal makes claiming R&D Tax Credits so straightforward, why not arrange a free demo by getting in touch. You can also speak to a member of our friendly expert team at any time by calling +353 1 566 2001.

Don’t forget, all our work is carried out remotely so it doesn’t even matter which part of Ireland your business is located. Also, if you’re not sure whether to make your claim via the Tax Cloud or if the full consultancy service might suit better, check out our recent blog Tax Cloud V's The Full Myriad Service: A Comparison.