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Using R&D Tax Software or Hiring a Consultant: Which is Better for Irish SMEs?

Making your R&D tax credit claim requires expert knowledge, an investment of time and a clear understanding of deadlines and complex requirements. Getting it right means claiming back 30% of your R&D costs; getting it wrong means having to pay back your credit and potentially hefty fees.

Though it's completely possible to make your claim alone, many companies choose to get support for theirs. However, with many advisers popping up across Ireland, how do you know if you're getting the right support for your company? Should you use a software tool or hire a traditional R&D tax credit consultant?

The honest answer is that it depends on your company. In this article, we'll compare both approaches honestly so you can make the right decision based on your budget, complexity, internal capacity, and how much control you want over the process.

What's the Difference Between R&D Software and Consultants?

Before you can choose between R&D software and a traditional consultant, you need to understand what each approach actually offers. Neither is universally "better"—the right choice depends on your specific situation.

The Traditional Consultant Model

The full-service consultant approach means your R&D tax adviser manages the entire process from start to finish. You provide the information about your projects and costs, and they prepare your claim and handle the submission.

Traditional consultants typically charge between 10% and 25% of your claim value as a success fee, though some charge fixed fees. For a €100,000 claim, you might pay €10,000 to €25,000 in fees. The relationship usually involves face-to-face meetings, phone calls, and hands-on project management throughout the claim process.

The R&D Tax Software Approach

R&D tax software in Ireland offers guided self-service with expert oversight. You input your data through a structured online portal, and the platform provides templates, automated calculations, and step-by-step guidance. Experts review your claim at each stage to ensure it meets Revenue's requirements.

The software approach typically charges lower fees - 10% for tax savings up to €200,000, with additional savings charged at 5%. For the same €100,000 claim, you'd pay €10,000.

The key difference is involvement. With software, you're more hands-on with the process. With a consultant, you delegate more of the work.

When a Full-Service Consultant Makes More Sense

Here's when hiring a traditional consultant is probably the smarter choice.

Your Claim is Complex or High-Value

If you're managing multiple projects with overlapping timelines, or you have significant capital expenditure alongside your R&D costs, a consultant's expertise can maximise your claim value. For claims over €250,000, the additional fee often pays for itself through a more thorough, optimised claim.

Cross-border R&D or intellectual property complications also benefit from specialist knowledge. These situations involve nuances that software templates can't always capture effectively.

You Don't Have Internal Capacity

If your technical team is fully stretched on delivery work and no one internally has time to dedicate 20 hours or more over a few weeks, delegating to a consultant makes sense. There's no point committing to a software tool if no one has time to use it.

Similarly, if your finance function is lean or outsourced, adding the R&D claim to an already overwhelming workload isn't sustainable. Sometimes paying more to delegate is the practical choice.

Your R&D is in a Grey Area

When you're uncertain whether your projects actually qualify for R&D tax credits, consultant expertise becomes valuable. They can assess borderline cases and advise whether proceeding makes sense.

Likewise, your team may have trouble being matching Revenue’s expectations when it comes to writing technical narratives. Support in these instances may be the thing that prevents your claim being subject to an R&D Aspect Query.

You Prefer Full Delegation

Some business owners and Finance Directors simply prefer delegating this type of work entirely. They want someone else to manage the process, and they're happy to pay a premium for complete peace of mind and a face-to-face relationship.

There's nothing wrong with this preference. If you value hand-holding and don't want to think about the claim once you've provided the initial information, a full-service consultant delivers exactly that.

When R&D Tax Software Makes Sense for Your Irish Company

R&D tax software isn't right for everyone, but it works brilliantly for certain types of Irish companies. Here's when it makes sense.

You Have Internal Capacity

If your team can dedicate 10 hours or so to the claim process split across the finance and technical departments, software can work well. This time is usually spread over 4-6 weeks, not done all at once.

You'll also benefit from software if your team is comfortable with technology and online platforms. Most importantly, you need reasonably good internal documentation. You don't need perfect records, but you should know which projects consumed resources and roughly how much time your team spent on them.

Your R&D is Relatively Straightforward

Software works best when your qualifying R&D projects are clear-cut. Since your team will be preparing the technical narrative, they need to be able to clearly communicate why the projects qualify.

If most of your costs are staff time rather than complex subcontracting arrangements or capital expenditure, the software approach becomes even more straightforward. Edge cases or highly unusual R&D activities might need more specialist input.

Budget Matters Significantly

For startups and early-stage companies where every euro counts, saving 50% or more on fees can make a real difference. That money can be reinvested into further R&D, hiring, or other growth activities.

If your claim size is under €150,000, software fees are particularly competitive compared to traditional consultants. The difference might only be a few thousand euros, but that's meaningful for smaller companies.

You Value Control and Learning

Some Finance Directors and CTOs prefer understanding exactly how their R&D tax credit claim works. Using software means you see every calculation, understand which costs qualify, and build internal capability for future claims.

This hands-on involvement with your claim means you're not dependent on external consultants year after year and you're building knowledge that stays within your company.

The Hybrid Approach: Best of Both Worlds?

Many Irish companies don't realise there's a middle ground between doing everything yourself and delegating everything to a consultant.

The hybrid approach means you complete your straightforward R&D claim alone or using software, but you bring in a consultant for specific complex elements. For example, you might prepare most of your software development claim in-house but hire a specialist for capital expenditure on new lab equipment.

Another hybrid strategy is completing your first claim with support (either software or consultant), then handling subsequent years independently with just an expert review before submission. This builds your capability while reducing long-term costs.

Cost Comparison: Real Numbers for Irish SMEs

Let's talk numbers, because most articles avoid this level of transparency.

Traditional Consultant Fees

There is no hard and fast rule for R&D tax consultancy fees; they vary depending on the size and expertise of the consultancy, their included services and your specific claim.

Contingency fees typically range from 10% to 25% of the credit value. This success-based model appeals to businesses managing tight cashflow since you only pay if the claim succeeds, usually on the backend once Revenue has paid out.

The downside is cost. On a €100,000 credit, you might pay €15,000 to €25,000 in fees. This model also creates limited incentive for advisers to build scalable, repeatable processes for repeat claimants.

Fixed fees generally fall between €5,000 and €20,000 or more. This structure works well for complex or high-value projects, particularly where repeat claims are anticipated. Advisers are incentivised to work efficiently, and you know your costs upfront regardless of claim size.

R&D Tax Software Fees

At the time of writing, there is only one R&D tax credit software tool in Ireland: Tax Cloud.

Your Tax Cloud fee is a tiered percentage based on your R&D tax savings. The fee is 10% for tax savings up to €200,000. Any additional savings are charged at a rate of 5%.

For example, for €300,000 of corporation tax savings, the fee would be €25,000 plus VAT (€200,000 at 10% plus €100,000 at 5%). Claims with corporation tax savings up to €27,500 are charged a minimum fee of €2,750 plus VAT.

Questions to Ask Yourself Before Deciding

Here's a quick self-assessment to help you decide which approach suits your company:

1. Time: Can your team internally dedicate 20 hours to this process over 4-6 weeks?
2. Complexity: Are your qualifying projects clear-cut (like software development or product improvements) or borderline cases?
3. Confidence: Do you feel comfortable explaining how your R&D meets Revenue's requirements, or does it feel uncertain?
4. Budget: What percentage of your claim are you willing to pay in fees? Are you comfortable with 10-15% or do you prefer paying 20-25% for full service?
5. Relationship: Do you prefer hands-on involvement with your financials, or do you want to delegate and not think about it?
6. Track record: Have you claimed successfully before, or is this your first time navigating the process?

Making Your Decision

The right choice depends on your company's specific situation. R&D tax software works brilliantly for Irish SMEs with straightforward R&D, internal capacity, and budget consciousness. Traditional consultants add value when claims are complex, high-value, or you simply don't have the time.

Many Irish companies successfully mix both approaches across different projects or years. The key is honest self-assessment about your capacity, complexity, and priorities.

Want to see if Tax Cloud's software approach suits your company? Book a free consultation to discuss your specific situation, or try our R&D tax calculator to estimate your potential claim and see what you'd pay in fees.