Register Your Research With AusIndustry

The first step to assess RD tax management is to check if your business is eligible for RDTI. The businesses that are eligible for availing of this incentive are:

• Liability to pay income tax in Australia
• Conducting an activity that meets the government criteria to be eligible under the category of RD.
• Capacity to spend more than $20,000 on eligible RD.

RD tax solution experts can help your business identify whether it fulfills the eligibility criteria or not, which RD expenses can it claim, and also assist in registering the research with the Department of Industry, Science, Energy, and Resources.

What is RD Finance?

In simpler terms, RD finance is a loan that can be secured against an organization’s pending RD tax refund that allows one to unlock the funds early. Depending on the type of RD finance, businesses can access their RD multiple times a year or bring it as a one-off lump sum.

What Are The Benefits of RD Finance?

Flexibility: Since RD finance offers flexibility, businesses can bring forward their RD refunds frequently throughout the year.

Enhanced cash flow: Bringing forward your RD refunds earlier means that businesses can avoid waiting around for capital.

Quick access to fund: The RD fund is guaranteed to arrive before your receive your RD refund.

Non-dilutary: In simple terms, the RD funds are your own money that you are accessing early. They are typically only secured against your upcoming RD refund. This generally means that you do not have to give up your stake in the business in order to receive this funding.

Fixed price and cash flow familiar: There are different types of RD tax solutions available in Australia, but Clearpoint Ventures offers the best services.

Additional benefits: Reinvesting your RD funds back into RD can help you generate additional income.

Choose The Right RD Tax Consultant For Your Business

How can you decide who is the best consultant for your business? The answer to this question depends a lot on your situation; whether your business is at an early stage or mature stage? Choosing the right RD tax solution is important as the advisors can guide you in the right direction. Clearpoint Ventures is a passionate team of legal experts who encourage businesses to be courageous, innovative, and to think out of the box. Their specialized tax consultancy makes them one of the most sought-after RD tax solutions in Melbourne.

The amount that you spent on the research and development is an important question, and if your investment is minor you can get away with filing a simplified claim, but if your spending increases an RD advisor becomes inevitable. In the world of RD tax management, there are different kinds of consultants who offer a variety of services. For example, specialists are consultants who offer a complete hands-on package that includes everything from interviewing the tech lead to writing the technical part of the claim.

All of us are well versed in the way accountants work. Accountants can also offer RD consulting, sometimes bundled with other services. However, in most cases, they can offer only limited audit support.

Given that in recent times many businesses have ventured into RD, a new generation of specialists has come up who provide just the right amount of support. Therefore, deciding who the best service provider for your company is, depends on your situation.

Getting Your Paperwork Right

It is important to arrange the right documents for your RD tax incentive. Some of the crucial documents that you will require are:

• A letter that confirms that your company is an eligible RD entity under RDTI rules and is also eligible to receive the refundable RD offset.
• A review of your business and the research and development work that has been undertaken by your company.
• Expenditure that your business has incurred due to the research and development process.
• An estimation of the RD offset.
• Verification of your company’s tax position from an accountant.
• Important documents related to your AusIndustry registration, business activity in the past, and previous tax returns.

Takeaway

Research and development tax incentives are an increasingly attractive tool for countries seeking to attract innovative businesses to their shore and give a boost to innovation, job creation, and GDP. These incentives are a source of attraction and an important deciding factor when companies decide where to locate their research and development team.

According to sources, the research and development incentives in countries like the U.K and the US are quite beneficial for advancing science and technology. In the year 2020, 33 out of the 38 countries the members of the Organization for Economic Co-Operation and Development countries, 21 out of 27 EU countries have offered tax relief for research and development.

Some countries will seek to attract businesses that bring in key skills such as process engineering, or IT for example. Along with location and incentives provided by various countries to attract businesses, automated tools like the latest advances in data analytics and machine learning can also be quite beneficial in building cross-functional collaboration. Collaborative activities can help both the tax as well as research and development teams to understand the incentives offered and progress accordingly.

But in order to fully understand how the research and development incentives work, businesses need to understand the work they are doing and the work they will engage in the the future. Simply by improvising the communication between the tax function and the research and development team, companies can expect their existing research and development incentives to be strong, thereby boosting their capital. This will play an important role in taking strategic decisions in the future.