R&D discussions?
Business Advisory Services Update
Accountants, a significant opportunity is available to assist SMEs to undertake the preliminary work that will enable them to make a lodgement to claim for R&D tax offset.
Unfortunately, many SMEs believe that accountants only prepare income tax returns and are not available to assist in activities, such as assisting clients in the preliminary work for a R&D activity.
R&D matters that you could discuss with your clients are…
Ask the question: “Are you undertaking research activities?”
If the answer is yes, you could give an overview of the preliminary work required to be undertaken:
Are the research activities being conducted by a company? Only a company can claim the R&D taxation benefits.
The nominated company must undertake the R&D activities and pay the expenditure.
Has the client conducted some preliminary investigations which are referred to as “prior art searches”?
Normally, a team will need to be assembled which could include client’s team members, consultants and contractors. It is desirable that written agreements are prepared with the consultants and contractors relating to the work to be undertaken and identifying ownership of the intellectual property to be developed.
The client needs to document the “new knowledge that will be created from the research activities to be undertaken”.
It is necessary to identify the “hypothesis” as experimental activities (whose outcomes can only be determined by progression of work), that proceeds from hypothesis to experiment, observation and evaluation and leads to ultimate conclusions, and the systematic progression of work is conducted for the purpose of generating new knowledge.
ESS BIZTOOLS has developed R&D Systems Manuals for accountants/bookkeepers to assist SMEs in the maintenance of the required records. To find out more, contact us on 1800 232 088 or email .
