R&D Health Check

“It’s fine. My accountant does it for a few of his clients and I’m happy with the outcome”.

While all accountants are definitely not the same, the ATO reports the highest error rates for R&D claims are made by accountants that lodge less than five claims a year.

The carrot and the stick. With a 43.5% tax offset at stake, claimants need to be sure they don’t get it wrong and get caught up in a later audit whereby they may have to repay the benefits received plus penalties and interest.

Undertaking an R&D Tax Compliance Health Check is a great way to sort things out and get some peace of mind as you need to know whether your claims are defensible.

After a site tour or presentation about the opportunities and challenges facing your business, we address the key issues facing firms claiming the R&D Tax Incentive.

Quite simply these cover:

1. Am I claiming eligible R&D activities?
2. Am I claiming eligible R&D expenditure?
3. What records do I maintain that link eligible R&D activities to the expenditures claimed?
4. Does my approach to R&D follow the scientific method?
5. What is involved in preparing an R&D claim?
6. What records will the ATO or AusIndustry require if I am selected for an audit or review?
7. Am I considered an expert in the field?

This is combined with a review of your last claim, your record keeping system and the results you have achieved to date. Tax compliance health check participants expand their understanding of the activities which can be claimed and how to capture them on an ongoing basis to bolster their compliance.

So we have created templates to help you get up to speed quickly and satisfy the scheme’s compliance requirements. These include R&D Project Plan templates for software and engineered products, information sheets on important aspects of claiming the Tax Incentive, and intuitive weekly labour tracking spreadsheets.