Each company that is looking to make a successful R&D tax relief claim is obligated with the duty of assessing their own research and development projects and keeping records showing all the resources spent on those projects. The records serve as supporting documents for their forwarded claim. Good records are able to clearly illustrate crucial details about any innovation or development activities in a company.
Without proper record keeping, a company stands to lose the chance of a successful claim to the HMRC. To help abate any concerns with regard to record keeping here are some pointers to help you learn what is expected.
Records required for claiming R&D tax relief
There’s no particular set format of how company records should be kept and forwarded for the claim. One company’s records may seem very different from another company’s but if both records are organised and pass all the thresholds needed, they will be successful in making their R&D tax relief claims.
Companies forwarding their claim for the first time are given some leeway and may be forgiven if their record keeping is not as organised as it needs to be. Provided they can show some form of evidence proving that time and money went to research projects, they are able to make a successful R&D tax relief claim. Alternatively, companies who have previously made claims are expected to have specific records that illustrate all the eligible details required to make a successful claim.
Attributes of good record keeping for R&D tax relief
The goal of forwarding an R&D claim that is going to be accepted is facilitated by compiling the right records.
Precise time records
Of all the eligible records, time records prove the most problematic even for companies who regularly make such claims. With many companies opting for timesheets, it is advisable to have intentional records showing time and costs used on each research project.
Clear and detailed
Records should be straightforward and to the point. For this reason companies, both large and small are encouraged to keep clear and detailed records if they expect speedy forwarding and execution of their R&D tax relief claims. Remember, the main aim is to get an advance upon forwarding your claim that will enable your company to conduct more research and development activities. If you intend to make tax relief claims in the future, it is hence only prudent to abide by the clearly set measurers working towards good record keeping.
We are here to help. Contact us at www.rdtaxcredit.org.uk and let our experienced accountants ensure that your records are in order giving you successful R&D tax relief claims.
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