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What R&D records and data do I need to keep to make a claim?

Updated:
Published:
01 January 2023
Summary
There is no set format for record-keeping, but you must be able to support your R&D claims with suitable documentation.
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What R&D records and data do I need to keep to make a claim?

At the time of writing (January 2023), there is no set record-keeping template or protocol for making an R&D claim. The shape and nature of suitable records for R&D is likely to vary between businesses.

HMRC are aware that first-time claimants will not always have comprehensive contemporaneous evidence for each aspect of their R&D. But any company claiming R&D tax credits inherits an evidential burden and a need to satisfy HMRC’s criteria for accurately underpinning the qualifying R&D and its expenditure (so you should expect to provide some documentary evidence in support of your assessments).

What do first-time claimants need to present?

In the first instance, you would be expected to demonstrate that prudent assessments have been made – this means you can still make a claim if you have no R&D-specific timesheets. HMRC will expect your record-keeping for R&D to improve year on year.

Contemporaneous records of project milestones, the people involved (and their time), and the eligible activities are all helpful in supporting an R&D claim. Timesheet systems can also be helpful in quantifying employees’ time on projects and activities (provided they know how to classify qualifying and non-qualifying work); but timesheets are not always the most suitable or practical system for a business. What matters most is that the system you use for tracking your R&D activities is suitably contemporaneous so that it reconciles with any costs, and – most importantly – it works for your business.

Using an R&D adviser

If you’re a new claimant, an expert adviser should take the time to get to know your business; they can help identify and clarify all the likely areas of R&D. And this targeted approach will help you devise or implement the most appropriate record-keeping measures for tracking R&D in your business.

How can we help?

Book a free consultation with our expert R&D funding advisors today. We specialise in helping innovative businesses like yours unlock millions in government funding, specifically allocated to fuel your innovation. Let us help your business access the support it deserves.

Dr. Claire Flanagan

Grants Lead

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