Why Should Accountants Use The Tax Cloud Portal?
Why make R&D Tax Credit claims harder than they need to be? The Tax Cloud portal broadens your services to clients and could bring in extra cash too.
Cost-effective, step-by-step claims process
R&D Tax Credits have been around for years but with the COVID-19 pandemic bringing continued misery to UK businesses it’s a scheme that’s growing in popularity.
And it’s not hard to see why.
Representing an incredibly generous tax relief against a company’s Corporation Tax, even loss-making companies can benefit with a cash credit instead.
Essentially, R&D Tax Credits allow for up to 33 pence for every £1 of eligible research and development expenditure to be claimed back. The qualifying projects and costs vary massively, with staff wages, overheads, materials and more all claimable. As long as the company has undertaken a project that required R&D investment in science or technology, and where the outcome was not obvious from the start, then R&D Tax Credits could apply. Typically this is via the development of a new product, process or service, or the appreciable upgrade of an existing one. See our R&D Tax Credits page for more.
Sounds great - so what’s the problem?
The UK government is extremely keen to encourage businesses to grow and innovate as a way of shoring up jobs and future economic prosperity. But the problem lies in the R&D tax application process; it’s complex by its very nature.
Firstly, it’s not always immediately obvious whether a company’s project is even eligible. And picking out the exact costs which will attract the relief - and which ones won’t - is also far from straight-forward.
It’s not that the government are trying to make applying for R&D Tax Credits difficult per se. It’s simply because the scheme has evolved over the two decades it’s been in operation - and every project is unique. Furthermore, there have been cases of companies being set up to specifically claim the relief (as well as other scams we won’t go into), which means HMRC have taken numerous steps over the years to tighten up the claims process. Unfortunately, the by-product of this is that making an application for R&D Tax Credits is not an activity any company should undertake alone. Indeed, even the most competent and experienced of business accountants have also fallen foul of it.
This is why it’s strongly recommended that both companies and accountants use the services of a professional R&D consultancy or R&D tax claim portal. And this is where the Tax Cloud portal really comes into its own.
How the Tax Cloud portal works
The Tax Cloud portal was developed back in 2017 by the R&D tax and funding experts at Myriad Associates. Divided into two separate sections for businesses and accountants, it was specially created as a simple to use portal that made claiming R&D Tax Credits far easier.
Essentially, as an accountant you simply log on (it’s free to sign up) and follow the steps to create a high quality R&D Tax Credits claim on your clients’ behalf. No more guess work, and no worries about being chased up by HMRC (our advisors can deal with that too if needed).
Having signed up for the Tax Cloud portal, we’ll ask for a summary about the company in question and what R&D projects have been carried out. A maximum of five technical challenges can be included per project.
On completion, a member of our expert team will review and approve the claim, and the next stage of the process won’t be available until this has happened. This means no time is wasted in going any further if the project isn’t actually eligible.
Next, when our specialists have thoroughly checked everything over and approved it, the following stage will open up and the application can continue. If you need any assistance along the way there’s a chat box on every page, and the team member that replies will specialise in that specific subject. This means you don’t just deal with anyone - only experts.
Once the claim is complete and ready to submit, Tax Cloud will send it to HMRC once final checks have been carried out.
A competitive pricing model
The whole point of the Tax Cloud portal is not only is it easy to use but it's less expensive than full R&D tax consultancy too. This is because either yourself or your clients (depending on the option you choose) are doing most of the legwork, so we pass the resultant savings on.
The Tax Cloud pricing model is as follows. For claims recieving over £200,000 in Corporation Tax savings, your client will be only be charged a rate of 2.5% of the savings. For awards amounting to less than £200,000 in tax savings, the charge is set at only 5%.
Fees are subject to a minimum fee of £1,000 + VAT. On our homepage you’ll find a handy calculator to help you see what fees your client will need to pay, as well as further guidance.
Then of course there’s the revenue share fee
The way the revenue share fee works is like this.
Firstly you start off by undertaking free Tax Cloud training before accessing Tax Cloud on your client's behalf. Your client enters in details about their projects and technical information while you deal with the figures and costs.
Once this is done, the specialists at Tax Cloud will review what’s been done before approving it or offering advice. Again, on approval the next step will ‘unlock’.
When everything’s finished and submitted your 30% revenue share fee is ready to claim.
A generous Introducer Package is up for grabs too
You can also receive a bonus even for simply referring your clients to the Tax Cloud portal so that they can complete the application themselves. A 15% referral fee is on offer for every client you bring on board, with your client still benefitting from the fully guided step-by-step process.
Why make R&D Tax Credit claims more of a headache than they need to be? By using Tax Cloud, accountancy firms are not only improving the breadth of services they offer to their clients, but can make a healthy kick-back too.
If you would like to find out more about the Tax Cloud portal and what it means for you and your clients, please feel free to ask us using our contact page. Don’t forget to also read up on some of our recent articles on the subject: