Making Sure you have the Right Documents for your R&D Tax Claim
Claiming R&D tax relief requires adequate record keeping. A question we often get is
‘What records may HMRC request for R&D tax relief claims?’
Should HMRC enquire into your R&D claim you will be required to demonstrate that:
- The project existed
- Costs were correctly incurred
What records should you keep?
The key records we suggest are:
- Project meeting notes or project status reports, risks and issue logs.
- Technical documents, including test results. These assist in understanding how the project evolved and what were the technical challenges.
- Staff time-sheets. As many companies do not keep time sheets, we recommend project estimates are maintained instead.
- Project costs incurred. Any costs incurred on the project should be identified, perhaps by a nominal coding or departmental tag in your accounting software. This assists to identify potential costs of contractors, materials, and licenses. This is paramount to building a solid R&D tax relief claim.
Our FAQ’s will also assist you to understand more. Should you have any specific questions please do not hesitate to contact us on 0161 298 1010.