Here Is Why You Should Make Use Of An Online R&D Tax Credit Software

Choose an Accounting Firm image 3983983n38938938

It is easy to obtain online services for almost any business need in the digital age, and R&D tax credits are no exception. In 2017, the first digital R&D tax credit software was developed. Since then, other businesses have created their own R&D tax credit software, and there is now an abundance of the web-based software to choose from. 

So why should you, as an accountant who serves small to medium-sized firms, jump on board the online R&D tax credit software bandwagon? Read on to know why. 

What Is An Online R&D Tax Credit Software? 

In essence, an online R&D tax credit software is desktop software that files your R&D tax credit application for you. While each platform will vary according to the provider, it is meant to help businesses maximize their R&D tax credit claim. 

The majority of online interfaces will want you to submit information about your organization in order for the program to determine the best course of action. For R&D tax credits, this will determine your eligibility and maximize the number of available claims. 

Nevertheless, not everything is automated. At each level of the process, the online software will connect you with qualified tax consultants. They will evaluate your application and will be available to answer any questions that you may have.

Advantages Of Making Use Of An Online R&D Tax Credit Software

Overall, utilizing digital R&D tax credit software provides all of the benefits associated with regular consultancy while expediting the process and reducing costs significantly. The majority of businesses that claim R&D tax credits will be small in scale. As a result, they may not have the means to explore how to file a claim. On top of that, if you do not have professional assistance, it might not be easy to decipher the HMRC definition of research and development. This is where web portals come in to help make the process of claiming R&D tax credits a little bit easier. There are numerous advantages to submitting R&D tax credit claims through an online portal, including the following: 

  • It saves money

Many R&D tax credit consultants will charge a percentage of the client’s business tax savings, which is a significant amount of money. This can sometimes account for a considerable portion of a small business’s overall investment budget. As a result, many small enterprises are deterred from seeking R&D tax incentives in the first place. The solution to this concern is addressed by an online R&D tax credit software, which has a comparatively inexpensive sign-up fee. 

  • It saves time

Filing a claim through an online portal will streamline the process, resulting in a much more efficient approach. And if you ever do run into any problems, there are professionals available to support you. Furthermore, it will free up your time to devote them to the particular R&D that the business wants to make claims for. 

In order for your claim to be accepted by HMRC, it must adhere to a set of rules established by HMRC. Because they are built by professional experts, online portals help to ensure that this transpires. This is critical since submitting an improper claim may result in HMRC conducting an investigation into the company’s activities. The results of a recent study indicate that the HMRC is scrutinizing R&D tax credit requests from IT companies. It also reveals that one in every five businesses that claimed R&D tax credits were apprehensive about an HMRC investigation.  An online platform will take care of the possibility of an inquiry, allowing you to worry about other things. 

  • Provides protection for your client

Several unethical organizations have been identified as acting as specialists in R&D tax credits in recent years, according to news reports. In addition to the possibility of your client losing money, these so-called “experts” who inflate a claim also run the danger of your client being subjected to an investigation by HMRC. R&D tax credit software protects your client’s business data by transferring it to a specifically developed system that has been encrypted. There is no requirement for them to provide their sensitive information to third parties.

How To Find The Best Online R&D Tax Credit Software

When searching for an online digital R&D tax credit software, it is critical to establish the level of support you require. It is pointless, for example, to discover that you are not eligible for a claim near the end of the process. Several indicators of high-quality online platforms include the following: 

  • Low cost

As indicated previously, this is one of the selling points of online R&D tax credit software, which distinguishes it from consulting firms. Compare a variety of online portals and their associated subscription rates based on the features they offer. Many will also charge only once HMRC has accepted the claim. 

  • Integration with accounting information systems

Accounting systems are a necessary component of modern businesses. As such, integration with accounting software is a substantial advantage. Integration eliminates the possibility of data entry errors, which could jeopardize the claim. Human error is an inherent risk in traditional consulting that cannot be avoided. 

  • Expert advisers

The advisors to whom you connect via the software must be trained and qualified professionals. This is critical since it determines the overall quality of assistance that you will receive. Generally, information about the advisers can be accessed via the online software. Additionally, online R&D tax credit software will be able to provide you with a pool of specialists rather than just one. 

  • Communication

A well-designed online R&D tax credit software will facilitate communication between both the claimant and its experts.  The software should include live online chat, email, and phone assistance. This enables the customer to move forward with their claim at their own pace and avoid any delays. 

  • Cloud technology

On this note, a high-quality online R&D tax credit software should incorporate cloud technology. This enables it to be accessed 24 hours a day, seven days a week, from any internet-connected device. There is no requirement for maintenance or physical servers. This enables round-the-clock access to a professional.

You may be interested in: Value Added Tax: Important Facts Businesses Should Know