Even R&D tax credits can be obtained online in the digital era, which is convenient for businesses of all sizes. It was in 2017 that the first online R&D tax credit software was created. Since then, several companies have developed their own R&D tax credit software, and now there is a lot of options online software available.
If you are an accountant who works with smaller companies, you should use web-based R&D tax credit software.
Web-Based R&D Tax Credit Software
To put it simply, online R&D tax credit software is a system that automates the process of filing your R&D tax credit application. It is intended to facilitate businesses to maximize their R&D tax credit claim, regardless of the software provider.
The vast majority of these web-based R&D tax credit software interfaces will want you to provide information about your business in order for the system to decide the appropriate courses of action for your company. The software will determine your eligibility and the amount that you can claim.
However, not all tasks can be automated. Hence, the online software will connect you to qualified tax consultants at every step of the process. The consultant’s job is to look into your application and answer any queries you may have.
Why Use a Web-Based R&D Tax Credit Software
Overall, using web-based R&D tax credit software gives all of the advantages of regular consulting while also considerably speeding up the process and saving costs. The vast majority of R&D tax credit claimants will be small businesses. Therefore, they may not be able to examine their legal options for making a claim.
Additionally, if you do not have the help of an expert, it may be difficult to understand the HMRC definition of R&D. This is where an R&D tax credit software online services come in to make things a little easier.
The following are some of the benefits of submitting R&D tax credit claims using a web-based portal:
1. It saves money in the long run
R&D tax credit consultants usually charge a portion of their clients’ business tax savings, which can be a substantial sum. This might significantly impact a small business’s budget. Small businesses are thus discouraged from applying for R&D tax credits because of this. A web-based R&D tax credit software with a relatively low sign-up cost solves this concern.
2. It is a time saver
The procedure of submitting a claim can be made considerably more efficient by using a web platform. Moreover, if you ever encounter any difficulties, there are experts who can assist you. It will also free up your time so that you may focus on the specific R&D for which the company wants to make tax credit claims.
HMRC has created a series of regulations that must be followed in order for your tax credit claim to be accepted. In order to avoid an HMRC investigation, you must file a legitimate claim. In accordance with the findings of recent research, the HMRC is evaluating claims for R&D tax credits from information technology companies.
According to the survey, one in every five businesses that applied for R&D tax credits claim are apprehensive of an HMRC audit. However, you would not have to be too concerned about the prospect of an inquiry if you use web-based software.
3. Protects your client’s interests
According to reports, there is quite a number of unethical entities have been discovered in recent years posing as experts in R&D tax credits. In addition to the risk of your clients losing their money, so-called “experts” who exaggerate a claim run the risk of your client being investigated by HMRC.
As a side benefit of the R&D tax credit software’s encryption of your client’s company data, you can rest assured that your client’s data is safe. They are not required to provide any of their private information to any third-party entities.
Qualities of a High-Quality R&D Tax Credit Software
When looking for a web-based R&D tax credit software, it is vital to consider the kind of services you will need to get from the software. To find out near the conclusion of the process that you are not eligible for a claim, for example, would be a complete waste of time.
Some qualities of a high-quality web-based software include the following features and characteristics:
1. Reasonably priced
As previously stated, this is one of the selling aspects of a web-based R&D tax credit software, which demarcates it from consulting organizations and serves as a distinction between them. Based on the features they provide, compare a variety of web-based software and the accompanying subscription costs linked with them.
Many will only make a charge once the claim has been accepted by HMRC, which is a great deal.
2. Accounting information systems must be integrated into the process
The use of accounting systems is a need in today’s business environment. As a result, the ability to integrate with accounting software is a significant advantage. By integrating systems, the danger of data entry errors, which could compromise the claim, is eliminated. It is impossible to eliminate the possibility of human error in a conventional consultation.
3. Consultations with experts
The consultants with whom you communicate through the software must be highly qualified and knowledgeable professionals. As a result, the entire quality of support you will receive is determined by this factor, which is crucial. In most cases, information about the consultants can be obtained through the use of web tools.
Aside from that, making use of web-based research and development tax credit software will be able to give you a handful of professionals rather than just one.
4. Clear communication
A well-designed web-based R&D tax credit software will make it easier for both the claimant and its specialists to communicate with one another. Online live chat, email, and phone support should all be available as part of the software. This allows the customer to proceed with their tax credit claim at their own pace, avoiding any delays that could otherwise occur.
A high-quality online R&D tax credit software should use cloud technology. This enables it to be accessible from any internet-connected device at any time of day or night, seven days a week, without restriction. The use of virtual servers eliminates the need for physical servers or maintenance costs. This will also allow being directly linked to a professional at any and all hours of the day.