If you're considering using Tax Cloud for your R&D tax credit claim, the first question is usually what it'll cost. Unlike consultancies that quote a vague percentage and leave you to work out the rest, we believe in complete transparency.
This guide breaks down Tax Cloud's pricing structure, explains when fees apply, and shows you exactly what's included, so you can decide whether it's the right fit for your business.
Tax Cloud's tiered pricing structure
Tax Cloud uses a two-tier percentage model designed to be fair for businesses of all sizes.
First tier: You pay 10% on the first €200,000 of tax benefit you receive.
Second tier: You pay 5% on any tax benefit above €200,000.
This tiered structure means larger claims benefit from a lower effective rate, while smaller claims stay affordable.
A real-world example
Say your R&D tax credit claim results in a €300,000 tax benefit. Here's what you'd pay:
- First €200,000 × 10% = €20,000
- Remaining €100,000 × 5% = €5,000
- Total fee: €25,000 + VAT
That's an effective rate of 8.3% on a €300,000 benefit, well below the 15% to 30% typically charged elsewhere in the industry.
What does "tax benefit" mean?
Your R&D tax credit can come back to you in a few different forms:
- A cash payment from Revenue
- A reduction in your Corporation Tax liability
- A bonus paid to key employees involved in the R&D, under Revenue's key employee provisions
- A mix of all of the above
Your fee is calculated on the total benefit, regardless of how you receive it. A €150,000 reduction in your Corporation Tax bill is treated the same as a €150,000 cash payment for fee purposes.
What is Tax Cloud’s minimum fee?
Tax Cloud charges a minimum fee of €2,750 + VAT. In practice, this affects claims with a tax benefit of €27,500 or less, since 10% of €27,500 equals our minimum fee.
Preparing a compliant R&D tax credit claim requires the same core work regardless of claim size. Our consultants still need to review your projects, assess technical eligibility, work with your team on eligible costs, and prepare a Revenue-ready claim report. The minimum fee lets us deliver that same standard of service whether you're claiming €20,000 or €2,000,000.
When do you receive your credit?
Revenue pays out R&D tax credits over three years rather than in a single lump sum. This applies regardless of how you choose to receive your credit (as cash or as a reduction in tax).
This is usually in the following pattern: half in year one, two-fifths in year two and the remainder in year three. The exception is for companies meeting the first-year threshold amount, who can receive more (or all) of their credit upfront.
The first-year threshold amount depends on your accounting period:
- Accounting periods beginning on or after 1 January 2024: €50,000
- Accounting periods beginning on or after 1 January 2025: €75,000
- Accounting periods beginning on or after 1 January 2026: €87,500
Say your claim is worth €500,000 in total credit. In year one, you'd receive the greater of 50% of that credit or the first-year threshold. In this case, you would receive 50% (€250,000). In year two, you would receive two-fifths of the credit (€200,000), and the remaining portion (€50,000) in year three.
For more on how the payout schedule works, see our guide to Revenue's three-instalment payment system.
Tax Cloud's own invoice works differently. We raise it once your claim is submitted to Revenue, and you have 45 days to pay from that date, well ahead of your final instalment landing. There are no fees charged upfront and nothing due before submission.
What's Included in the Service
Your Tax Cloud fee covers a lot more than form-filling. You get:
- A dedicated technical and financial consultant reviewing every claim, not just a template generator
- A compliant claim report built to Revenue's standards, plus your Corporation Tax return (CT1) prepared as part of the service
- Audit support at no extra cost. If Revenue opens a query into your claim, we handle the correspondence and defend your position without charging additional fees. Read more about what happens if your claim is audited.
- Full Xero integration so your costs transfer across without manual re-entry
- A timesheet module to help you apportion staff time accurately throughout the year
- Unlimited user permissions, so your finance, technical and admin teams can all work in the platform, with different visibility levels so sensitive material stays restricted to the right people
How Tax Cloud compares to traditional consultants
|
Tax Cloud |
Traditional R&D tax consultants |
|
|
Fees |
5% to 10% |
15% to 30% |
|
Upfront fees |
None |
Sometimes required |
|
Fee if claim is unsuccessful |
None |
Varies by provider |
|
Long-term contracts |
None |
Common |
|
Audit support |
Included |
Often charged separately |
Traditional consultancies typically hand the claim almost entirely to a specialist after you provide the basics, conducting interviews with your team and then providing a report and costing analysis back for your approval.
Tax Cloud combines your deep project knowledge, software efficiency and expert oversight: the platform handles data collection from your team, while our consultants focus on the technical assessment and cost reviews that genuinely need human expertise.
If you're weighing up whether a software-led service or a full consultancy suits your business better, our guide on using R&D tax software versus hiring a consultant covers this in more detail.
What happens if you don’t want to continue?
Tax Cloud's commitment point is after project approval. When you first reach out to us, our specialists assess whether your activities qualify for the R&D tax credit and whether you have sufficient eligible costs to proceed. You’re then free to submit your projects on the platform for a formal review.
If you submit your projects and we find there are no qualifying projects or costs, you can walk away without paying anything. Once your projects are approved, the rest of the claim unlocks and our fee applies based on the tax benefit you eventually receive. There are no rolling contracts and no multi-year tie-ins; each year’s claim stands on its own.
Key Takeaways
- Tax Cloud charges 10% on tax benefit up to €200,000 and 5% above that, subject to a €2,750 + VAT minimum fee.
- You only pay once your claim is submitted; if Revenue eventually rejects your claim, we will refund our fee.
- Revenue pays your credit over three years, so it's worth factoring that timeline into your cashflow planning alongside Tax Cloud's own 45-day payment terms.
- Audit support, your CT1, and unlimited user access are all included in the fee, with no extra charges further down the line.
If you'd like to see what your fee might look like, try our R&D tax credit calculator. Or if you'd rather talk through your specific circumstances first, get in touch and we'll walk you through it.
