So, your company has taken the plunge and signed up to trial WhisperClaims to prepare your R&D tax claims, and you’re raring to go!
Your next step is to get the rest of your firm onboard. Well, while we won’t pretend to be experts on change management, we’ve pulled together this quick guide to help make your job easier.
How does your company currently handle the preparation of R&D claims? Is there a defined process? Do you use a third party provider?
The first step to successful adoption of WhisperClaims is to work out how and where it can add value. Spend time really pulling apart how things are currently done, and look for gaps, bottlenecks and inefficiencies. Once you’ve identified these, you can look at how WhisperClaims could help. If, for example, you’ve been turning down opportunities because the claims are too small to be economically viable, think about how WhisperClaims could be used to remove costs from the process. On the other hand, if you currently outsource everything, think about how and when this can be brought back in house.
Ok, you’ve worked out how WhisperClaims can actually help your team. Now it’s time to find yourself a hero! It might have to be you, or you might have to persuade someone from the team to join you, but having a champion could be key to the whole endeavour. They’ll need to have good rapport with the team, be excited about WhisperClaims, and, for maximum success, be generally skeptical about change. If you can persuade the most cynical member of your team to be your champion, you’re half-way there!
Right, it’s time to start training! Make sure you pitch the training at the right level – experienced teams won’t need a primer on the R&D scheme, for example, whereas if the team have never directly done an R&D claim, then diving straight into the software might leave them confused and more resistant than ever.
Make sure that you, and your champion, are clear on what pace your team will need in order to build their confidence. Some members of your team may find change overwhelming, so this will be your chance to show that you understand their needs and to get people on board.
Hopefully the training will have gone a long way towards getting the team’s buy-in for WhisperClaims, but you’ll probably still want to continue to work on this. Take the time to sense-check your plans with the team, and ask how they think WhisperClaims could be best used. Don’t let them override your plans, but do be prepared to make adjustments to include the team’s input and ideas.
Ok, your plan has been optimised and the team are onboard – it’s time to get going! At this point, it’s a good idea to identify a particular subset of claimants to trial the software with. This might be new claimants only, or just smaller claims, but the key thing is to make sure that enough claims are put through WhisperClaims to give you enough data to analyse the effects of using the software.
Once the trial is complete, it’s time to look at the results. How much time or money was saved? Were your clients satisfied with the process and output? How did the team feel about using it? Make sure to celebrate the success of the trial, and reward the team members that engaged with WhisperClaims. Show a league table, publish stats on profitability, give out chocolate – whatever it takes to get the final buy-in from your team!
So, you’ve convinced the team, tested the tool and refined the process. All you need to do now is roll it out far and wide. Work with your team to identify potential claimants, market R&D tax relief services to your client base and start putting as many claims as possible through the system!
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It’s statistics time again! That one hallowed day of the year when I get to take off my Operations Director hat and let out my inner scientist. The annual Research and Development Tax Credit Statistics have been released, and, as usual, they make very interesting reading.
Now, from this point, I could just copy and paste the blog I wrote last year, because the trends in the data are remarkably consistent. The 20% year-on-year increase in the number of claims continues, as does the rise in first time claimants, which is great news for us and the R&D tax relief industry as a whole. However, I’m more interested in digging further into the stats, and looking at how they can be used and manipulated.
One statistic that all R&D tax relief specialists will tell you is that the average tax benefit from an R&D claim for FY2017-18 is £54,000. They’re not lying. If you take the overall total paid out in R&D claims and divide it by the number of claims, you get that number. Great, you might think, I’ve got lots of clients who could claim R&D tax relief, and would be really happy with a payout of £54,000.
However, looking a bit harder, and you’ll see that a very different story emerges. In FY2017-18, 76% of SME scheme claimants received less than £50k in benefit. Looking specifically at this group, the average tax benefit is only £16k, a serious drop from the quoted £54k. That’s not to say that most claimants wouldn’t be happy with £16k in benefit, but they might if they were expecting three times that!
The other statistic you’ll see time and time again, often alongside the £54k figure, is a company claiming a ‘100% success rate’ with R&D claims. Sounds great, doesn’t it? But it all depends on your definition of success, and, just like the R&D stats, can easily be manipulated to the point of being meaningless.
So, why would we point this out? Well, partly because we love it when statistics and marketing are aligned and being used to tell compelling stories, and partly because we’re suckers for upfront honesty. While statistics aren’t always what they seem, we’ve expended a huge amount of time and energy in developing a system that is what it appears to be – a straightforward way to gather information from your clients and the means to prepare robust and editable R&D reports at the touch of a button. While your success rate may not be 100% (clients sometimes go bust or miss the deadline), at least you can be sure that you’re using a system that is specifically and unashamedly designed for one purpose – helping you to take effort and cost out of your R&D process while enhancing your clients’ experience of working with you.
Last week we were surprised and very flattered to find out that WhisperClaims has been included in the long-list for Business Cloud’s Scotland Tech 50. The aim of this award is to recognise the 50 most exciting, disruptive and impactful Tech companies in Scotland, so to even be nominated feels great! It’s extra special as it came out of the blue – no entry forms or nominations from us!
It’s especially mind-blowing to be included in a list alongside some of the biggest names in Scottish Tech – SkyScanner and Freeagent, to name just a couple. Having only been in business for little over a year, it’s incredible to be spoken of in the same breath as so many really successful companies.
Inclusion in the final list of 50 depends on both the votes of the judging panel and the result of a public vote, so if you feel that we fit the description of an exciting and disruptive company, we’d love your support!
Simply go to the Scotland Tech 50 website, scroll all the way to the bottom and click on WhisperClaims. Voting closes on 9th October at 11pm, so you’ll have to move fast. Fingers crossed!
Our Jen Badger gives us her heart-felt account of what it means to be shortlisted for the Scottish Financial Technology Awards a year on from the launch of WhisperClaims.
Back in August, we were thrilled to hear that, on the back of our winning ‘Emerging Fintech Company of the Year’ at the Scottish Accountancy and Financial Technology awards, we’d been nominated for two more! We’re up for the ‘Product Innovation’ and ‘Rising Star’ awards at the Scottish Financial Technology Awards.
As a software start-up, any and all recognition is special. You work hard designing, developing and building your product, making something you’re really proud of. Then you start trying to sell it, and suddenly expose your baby to the reality of the world. Fear sets in as you consider how people might respond to your product. But then soon enough, after all of that hard slog, you impress someone. In fact, you impress them so much, they actually nominate you for an award. It’s an amazing feeling.
This latest pair of nominations is particularly special. We set out to produce a truly innovative and disruptive product, so to be recognised in the product innovation category is great validation of our product and business model. WhisperClaims is the only fully automated R&D relief claim platform in the market, and it’s great to have the team’s innovative development work acknowledged. It’s also incredibly flattering, a year since officially launching WhisperClaims, to be listed alongside such well-established names as Autorek, Hymans Robertson and even RBS!
As for the rising star category, well, that’s exactly how we feel! Over the past three years, we’ve risen from three of us sitting around a dining room table, mapping out our ideas on endless sheets of paper, to a fully-fledged company. We’ve got paying customers, a great team and a strong vision for the future, with no plans to slow down!
Having said all of that, if you were to ask me what I’m most proud of over the past few years, it wouldn’t just be the awards and nominations. I’m proud of what we’ve built – a great product, a happy customer base, and, most importantly, a great team. With all of that, no matter how it goes on the night, I know we’ll continue to feel like winners.
If you find yourself at the Scottish Financial Technology Awards on Wednesday 25th September please don't be shy. We'll be there, so come say hi!
If we had £1 for every time we’ve been asked this by a client, we’d (pauses to count on fingers) be rich! Seriously, it’s a common question, and one that’s surprisingly difficult to answer with more than an “it depends”.
The Government's own guidance points out that R&D tax relief is not just for ‘white coat' scientific research, as you might expect, but also for ‘brown coat' development work in design and engineering involving overcoming difficult technological problems. However, this just broadens the scope and makes identifying eligible clients harder!
If you were to ask us which of your clients definitely don't qualify for R&D tax relief, that’s pretty easy. You can immediately dismiss all of you clients that are not limited companies – goodbye sole traders and LLPs! Once you’ve done that, we’d tell you to ignore any clients that are not going concerns, or already in administration – they’ll not be able to realise any benefit. The last easy filter is any companies that don’t have staff, and only pay the Directors dividends – unless you know that these companies have significant other costs, they won’t have expenditure to make a claim.
After these easy black and white answers, however, everything turns various shades of grey. You could start by focussing on the industries and sectors where the most claims are made – the three sectors covering technical, IT and manufacturing account for 70% of claims, according to HMRC’s statistics. There will be a rich vein of eligibility within this section of your client base, and it’s a great place to start.
So, you’ve filtered out your definitely ineligible clients, and identified your technical, IT and manufacturing clients – what now? How can you assess the rest of your client base? This is where your in-depth knowledge of your clients, their businesses and their particular problems comes in. No-one is better placed than you to identify the clients who have expanded their product range through innovation and product development; taken on new staff to work on research products; received grants linked to development; employed staff with R&D-related job titles, such as testers, engineers, developers and designers; spent a lot on contractors to help with problem-solving; included costs for subcontractors, development or R&D in their accounts; or seen an increase in wastage and cost-overruns.
Throughout this, you should bear in mind that qualifying work can include creating new processes, products or services, making appreciable improvements to existing ones, and even using science and technology to duplicate existing processes, products and services in a new way.
This assessment might seem daunting, even once you’ve filtered your list down to just those companies that you think are likely to be eligible. This is where WhisperClaims comes in – with its no obligation, real-time assessment of eligibility, you can enter the details of all of your potential claimants and let the system help you assess which of these to take forward, without incurring any additional costs.
So, why go to all this effort? Why make sure that all of your eligible clients are claiming? In short, because by not claiming, they’re missing out on a potentially lucrative payout for not very much work. Claimants can get back up to 33% of their eligible spend on R&D, and we’ve never met a company that wouldn’t welcome some extra income!
Last week we were thrilled to be awarded ‘Emerging Fintech Company of the Year’ at the Scottish Accountancy and Financial Technology Awards. We were up against stiff competition in the form of two of our Codebase neighbours – Float and Mark to Market, and were genuinely surprised when our name was read out!
Although this is not the first award we’ve won, it does feel the pretty special. Funding the business ourselves, taking a risk on developing our R&D tax platform from an idea, to a prototype, to real customers, and now gaining recognition from the Accountancy sector, the very people who use WhisperClaims every day, is just a fantastic feeling.
The judges feedback also gave us a buzz – they were impressed by the WhisperClaims platform and its potential to massively disrupt an existing market, and by our capacity for future growth, both things we’re very excited about too!