The document is to help businesses undertaking R&D understand what records they must keep to:
- Successfully claim the Research & Development Tax Incentive (RDTI)
- Demonstrate eligibility if Inland Revenue reviews or audits their claim
- Reduce risk of claims being partially or fully declined due to poor documentation
To claim R&D tax credits, you must be able to show that the amounts you’re claiming are directly related to, required for, and integral to R&D activities.
1. Your record-keeping will need to go beyond what’s normally required for tax purposes. You will need Research and Development Tax Incentive (RDTI) related information to complete your claim, and to substantiate it if we review it.
2. Involve your technical people as well as your accountant. Eligible R&D activity is fundamental to your claim and your technical people are critical to gathering the required information.
3. Wherever possible integrate RDTI requirements into your existing accounting system and project management processes.
4. Identify and record the information at the time the R&D activity occurs. This improves the credibility of your claim and makes it more likely that you can capture all eligible expenditure.
