To further help businesses seeking to claim their R&D tax credit entitlement, the London- and East Midlands-based R&D tax consultancy firm Myriad Associates has developed an additional option for SMEs seeking to claim their R&D tax credit entitlement: Tax Cloud, an R&D tax credit claim portal.
Tax Cloud offers your small businesses a guided, cost-effective, online tool to help you through the R&D tax relief claim process. After a straightforward sign-up process, Tax Cloud automatically verifies your details through Companies House. You then use the Tax Cloud forms to provide information about your R&D projects and their costs. Myriad Associates’ expert consultants review and support your claim by giving you feedback and recommendations to ensure that you’re on the right track. Once you’ve finished your claim, Tax Cloud takes your project details and creates an R&D tax relief claim report that’s ready for you to submit to HMRC.
A self-service R&D tax credit portal like Tax Cloud offers you the benefits of working with a leading R&D tax relief specialist at a reduced price. These platforms are designed with small businesses in mind, providing you with a guided approach to making your R&D tax credit claims. You can work through the process at your own pace, and seek help from technical specialists, cost accountants, and tax experts anytime you have any questions.
The fee for a successful claim through Tax Cloud is 3.5% of the company’s R&D expenditure, which is equivalent to 10.4% of the corporation tax savings for a loss-making business, and 13.5% of the corporation tax savings for a profit-making business. Typical R&D tax consultancy rates are around 20% of any tax credit payable or refund of corporation tax. There is no upfront fee for using Tax Cloud; users only pay after their R&D tax credits claim has been successfully processed by HMRC.
However, although more UK SMEs are claiming R&D tax credits than ever before, many companies are still missing out. Almost any company in any industry is eligible for R&D tax credits, so long as the business is undertaking development activities to seek to achieve an advancement in science or technology. Many businesses are doing this in their day-to-day work, from software development and engineering companies to firms working in food production.
If your company is taking a risk by innovating, improving, or developing a product, process, or service, then you can quality for R&D tax credits. The project must contain a level of technical uncertainty for a competent professional, so if you faced questions that left you and your team scratching your heads to find a solution, that’s a good indication that qualifying R&D activities were taking place.
Whether you make your R&D tax credits claim directly to HMRC, with a specialist advisor, or through a portal service such as Tax Cloud, there are a few areas to understand before you make a claim.
The following activities would be considered eligible for R&D tax credits:
In addition, certain indirect support activities may qualify for R&D tax relief, such as:
The main areas of costs that can be claimed are:
You can use an R&D tax credits calculator to see an estimate of your corporation tax savings based on your spending on your R&D projects.
Tax credits are a powerful way of supporting innovation in the UK economy and are extremely beneficial to companies of all sizes, particularly smaller enterprises, where cash flow can be a critical issue. With several options available for SMEs seeking to claim their R&D tax credit entitlement, including self-service portals such as Tax Cloud, there’s no better time to make your first R&D tax credit claim.
Our guide provides step-by-step instructions on what to include in the report to ensure you receive the maximum tax credit for your research and development projects.
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