What to do if flagged as “At-Risk” with the R&D Tax Incentive claim 

Have you been flagged as “at-risk”, or are worried you could be during this next tax season? Through this article, we will help shed light on what it means to be ‘at-risk’ and how to avoid being flagged when it comes to submitting your R&D Tax Incentive claim.  

If flagged as “at-risk”, AusIndustry will notify the areas of concern and advise you that you will be reassessed in 12 months. This gives you time to review your records and processes to improve them before the Audit. 

If your documentation is correct, you have nothing to worry about. The Government provides specific guidance on what documents they want you to provide as evidence of your R&D work. 

You need to cover the following areas to the right level of detail: 

  • Product strategy with project roadmap and new knowledge assessed 
  • R&D project documentation with project hypothesis explained 
  • R&D project eligibility proof for core R&D activity documentation 
  • R&D project timelines, plans and budgets 
  • R&D work records that track time and materials as core and supporting 
  • Experiment plans to prove the hypothesis documented 
  • The experiments conducted, and evidence recorded with the results evaluated/reported 
  • Minutes of meetings to formally evaluate results, correct, and iterate on the hypothesis. 

What is the right level of detail? 

You will need a way to ensure you capture enough evidence without going overboard. The best way to do this is to have a set of templates used for all R&D projects and checklists to ensure you don’t miss any, leaving holes that may be discovered in an Audit. 

How Clearpoint Ventures can help  

Clearpoint Ventures is dedicated to maximising your R&D Tax incentive claim and achieving the best possible outcomes for your business. We do this by supporting you every step of the way, making the process of reporting and claiming simple. 

Our R&D Tax Incentive specialist can help with: 

  • Strategic and holistic solutions incorporating tax and legal concepts 
  • Advice on record collection systems throughout the year to maximise your R&D Tax Incentive claim and improve your productivity 
  • Reliability with a fixed fee service, not a percentage of refund service 
  • Review and preparation of opinions on complex R&D Tax matters 
  • Supporting Documentation and Substantiation – including R&D Tax Advice where required 
  • Preparation and lodgement of R&D Tax Incentive claims 
  • Ensuring high-level compliance to mitigate audit risk 
  • Working alongside your accountant to provide you with the optimum outcome for your tax return. 

If you are unclear about what help you should get, book a 15-minute discovery call to discuss your specific situation. Book now.