RDVault is a software-as-a-service (or SaaS) platform that largely automates the process of preparing R&D tax credit claims. The Manchester-based company claims it can save its customers from losing up to 30% of the claim money they would receive to specialist advisers.
To achieve this, the company has built a “fully-automated R&D tax engine”, which its CEO and founder Shoayb Patel says is the only software of its kind to integrate with cloud accounting software like Xero.
We spoke to Patel to find out more.
What problem are you trying to solve?
Shoayb Patel: Several times a week I come across companies that give away up to 30% of the value of their R&D Tax Credits claims in the form of fees to their advisors. An average claim is around £83k, so a company could be expected to pay £12k in fees – and that’s on the low end of the spectrum. At 30%, that’s nearly £25k!
R&D tax claims are perceived to be complex, requiring lots of specialist advice and taking weeks if not months to prepare. I wanted to develop a solution which would eliminate these perceptions, resolve the pain points and empower businesses to make their own claims while retaining most of their money Making Tax Digital (MTD) digitised VAT, and it makes perfect sense for other taxes to follow suit too.
Talk us through how the software works
RDVault enables a company to prepare and submit their claim to HMRC. Simply put, a user will connect it to their book-keeping software, like Xero or Quickbooks, and it will then sync all the accounting information. The user then selects the accounting period for which they want to claim R&D, can and set up all the R&D tax projects in a matter of seconds to start analysing expenses related to the R&D activities.
The software, which caters for all the different R&D schemes, grants and subsidies out there, automatically calculates exactly how much R&D tax credits the company can claim. Importantly, no experience or tax legislation expertise is required to prepare the R&D claim.
What is your investment story?
This year we’re going to be raising investment. It will be our largest round so far, and we will use it to develop key technology; architecture; marketing; and business, in addition to our geographical expansion. If you are aware of investors who are serious about putting money into a scaling company, we’d love to be introduced to them. We’re nearly there with helping businesses claim R&D tax credits in double digits, and my aim is to help businesses claim tax credits in triple digit figures by the end of 2020.
What is you and your company’s ultimate ambition?
My vision and that of my team at RDVault is one: to become the world’s leading software company helping businesses and professionals alike claim R&D tax incentives. I have a list of 15 countries on my desk that cumulatively spend over $1 trillion on R&D activities, generating over $50 billion worth of qualified R&D tax incentives each year.
Our mission is to quite simply provide an efficient, reliable and comprehensive solution to all these countries. We want to help businesses reinvest money that would otherwise be catching dust in the tax advisor’s or government’s coffers.
What’s on the horizon for RDVault?
We have an aggressive roadmap ahead of us in 2020. The good news is we have a 100% user retention rate – why wouldn’t we, when businesses can claim R&D tax credits for only £2k? Our efforts are now concentrated on scaling the business, increasing our reach and helping more businesses claim R&D tax credits.
We’re in the process of launching integrations with many other ERP systems, accountancy and tax software solutions. We’re going to be introducing AI later this year, which will provide massive benefits to claimant companies – all with unprecedented efficiencies. Partnerships are also key to any business’s success and growth, so we’re solidifying key partnerships and arrangements through networks and institutions to springboard us to the next inflection points.
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