Australian start-up Incite Systems has signed a deal with a UK firm to take its technology to the British market, after developing software to help businesses understand their eligibility for R&D tax incentives.
In 2010, Michael Burfield and Bruce Bishop combined their experience in accounting and R&D tax consulting to establish Incite Systems, a specialist R&D tax software developer.
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Incite Systems has developed an online project management system called R&D Manager, which helps accountants guide clients through the R&D tax documentation and application process.
RDM links advisers and clients in real time. Each client is given their own login to access their records and update them as a project progresses.
The adviser can then check in to ensure accurate records are being maintained throughout the year, and alert the client when a lodgment is overdue.
The software also alerts the user to changing requirements and regulations with regard to R&D tax and compliance, ensuring the documentation process remains current.
Burfield says the user-friendly software can help accountants manage their clients through the R&D tax submission process.
“The process required to claim tax incentives, rebates and credits is often considered too costly and time-consuming to be worthwhile,” Burfield says.
“Additionally in Australia, many mid-tier accounting firms do not have the in-house expertise to advise clients on the details of R&D tax, so it is often overlooked.”
RDM launched in Australia in 2011 and is now preparing to launch in the UK, after signing a joint venture agreement with UK firm GGTC (Government Grant & Tax Consultants).
According to GGTC chief executive Jeremy Tear, thousands of businesses are missing out on the tax credits available to them in the UK because they don’t know what they’re entitled to.
“Between 8000 and 9000 businesses are currently claiming the R&D tax credits in the UK, while there are as many as 150,000 businesses that could be eligible,” Tear said in a statement.
“[When] we became aware of Incite Systems’ RDM program, we approached them immediately to find out if it could be brought to the British market.”
“The core elements of the program, and its adaptability to businesses of all sizes and sectors, is exactly what we were looking for.”
Incite Systems will adapt its software to make it compliant with UK regulations and tax laws, and provide ongoing support to GGTC as RDM is rolled out to clients across the UK.
“Once we have the system set up in the UK, there is scope to roll it out more broadly across Europe,” Tear said.
“The Irish R&D tax system would benefit significantly from this type of project management tool… Spain and France are also using R&D tax credits as an important cashflow tool.”
Details of the partnership will be finalised by September, with work already underway to adapt the RDM software to UK requirements.
The agreement with GGTC will see it introduced to the British market in late 2012.