I saw your article last week on research and development and I think I am eligible. How do I apply?
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![You claim the R&D tax incentive through the R&D schedule in your company’s annual income tax return. The tax office requires two types of record keeping. You claim the R&D tax incentive through the R&D schedule in your company’s annual income tax return. The tax office requires two types of record keeping.](/images/transform/v1/crop/frm/e8uBJxuTc2fGAziDArmhm5/4e8d9e76-ec47-4ba3-b6cf-9a16004a06ee.jpg/r0_0_1809_2510_w1200_h678_fmax.jpg)
As discussed last week, if you have a project that is research & development, or R&D, to claim the R&D tax incentive you need to register each of those R&D projects with AusIndustry by lodging an online form.
Your R&D projects need to be registered each income year and the registration form must be submitted no later than 10 months after your year end.
For a 30 June 2015 year end, your form must be submitted by 30 April 2016.
Once AusIndustry have approved your R&D projects, they will issue you with a R&D registration number. This should be included in your company’s tax return for that income year to allow you to claim the incentive.
You claim the R&D tax incentive through the R&D schedule in your company’s annual income tax return.
The ATO require two types of record keeping if you plan to register for the R&D incentive.
Firstly, records need to be kept to show that each registered project is in fact R&D.
This should document the unknown aspects of the project and your hypotheses on solving the issue.
It should include things such as notes from meetings with technical staff or associates about the R&D projects, as well as any background research you may have conducted.
It should also include any test results from your experimentation, and all versions of any concept plans you may have devised.
Secondly, you will need to keep documentation to support all of your R&D expenses incurred throughout the year.
This includes not only invoices, receipts etc, but also timesheets for a log of time spent on activities. You will also need to show how the costs link to the R&D activities.
All of this documentation that relates to the R&D project and its expenses needs to be kept for five years.
Understanding your eligibility and claiming the R&D incentive can be complex and I strongly encourage you to seek assistance from a tax specialist.
If you would like more information on this topic or have another tax question e-mail me at tax.albury@crowehorwath.com.au.
This information is general in nature and readers should seek specialist advice before making financial decisions. Crowe Horwath (Aust) Pty Ltd ABN 84 006 466 351.