R&D Tax Incentive Compliance
The ATO/AusIndustry have requested all R&D Tax agents to work with their clients on a contemporaneous basis (in the year R&D activities are being conducted) to ensure that proper records are maintained as required by the R&D tax legislation. As such, TCF are adapting their service delivery model to comply with the program’s requirements.
1/ INITIAL SET UP
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 either the new R&D Project Plan template OR on-board and train clients’ R&D champions in using R&D tracking software called Synnch which includes the following 4 steps.
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, or set up activities in Synnch.
Design customized technical reports template for use by the clients R&D technical champion on to complete monthly reports OR set up reporting within Synnch ( part of software on-boarding/training).
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
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.
Is using Synnch, all reporting and time-sheets will be expected to be completed within 10 business days of the end of the prior month. Synnch allows a collaborative approach whereby TCF will monitor all inputs to ensure client’s self-assessment is at the required standards
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.
* Time-sheets by activity by R&D person
* Technical reports
* Management accounts
* Contemporaneous data collection