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R&D Tax Record Keeping

The  TCF Way

The ATO/AusIndustry have requested R&D Tax agents work more closely with their clients on a contemporaneous basis (in the year R&D activities are being conducted) to ensure that proper records are maintained to ensure compliance as required by the R&D Tax legislation. As such, TCF have adapted their service delivery model to comply with the program’s requirements.

1 - Initial Setup

Identify internal R&D champions – involves identifying a Technical and Financial leader within each client who will be trained and responsible to maintain and provide the required technical reports and time-sheets on a monthly basis to its nominated TCF Services consultant and coordinator.

Establish an agreed calendar of key dates for the provision of R&D records to TCF Services.

Record keeping audit – identify and fill any gaps within the current records kept to meet upgraded compliance standards.

Decide whether internal records will be upgraded OR R&D tracking software introduced as the best option for contemporaneous recording of data.

Work with client to populate the new R&D Project Plan template.

Identify the core, supporting and ineligible project activities within each project to be tracked via time-sheets to determine eligible portion of salaries that will be claimed.

Provide a new time-sheet template with identified R&D staff against activities determined.

Design customized technical reports template for monthly use by the clients R&D technical champion.

Establish how R&D costs will be linked to R&D activities on a quarterly basis to confirm the R&D costs are in line with budgeted expectations.

Write a report which outlines the internal records and processes that have been implemented, the agreed timelines for reporting and the roles and responsibilities of both the internal R&D champions and TCF consultative staff.

2 - Ongoing Support and Data Collection

The initial 3-6 month set-up and training period your nominated TCF team member will work with your nominated R&D champions to ensure that the upgraded record keeping processes established are maintained up to the required level on a contemporaneous basis. Support, training and general guidance will be provided.

Within 2 weeks after each month, the client’s nominated R&D champion/s should be in a position to provide the following data to TCF Services;

i) Weekly time-sheets by activity by person for the prior month

ii) a technical report as per template provided and

iii) ongoing completion of the R&D project plan each time a new project commences.

TCF will take a pro-active approach in ensuring all record keeping gaps are dealt with by way of checking the data, providing prompts to remind R&D champions to catch up with the work, providing further training or by filling in the gaps if required.

Key Requirements

  • R&D Project Plan OR Secure Cloud Based Software
  • Time-sheets by activity by R&D person
  • Technical reports
  • Management accounts
  • Contemporaneous data collection