R&D starts when work to resolve the scientific or technological uncertainties start and it ends when these uncertainties are resolved or work to resolve them ceases (the “R&D Project Period”).
The R&D Project Period may start or end during an accounting period and therefore staff time on each R&D project will need to be apportioned accordingly.
Our experts will help you determine the R&D boundaries of your project, identify the elements of R&D within commercial projects and advise you how to present these to HMRC.
Calculating an accurate apportionment of staff time spent working on qualifying activities within the R&D project will depend on the nature of the work done and the records that you have in place.
Staff joining of leaving the company during the year will need to be considered and also whether staff are working full or part time hours.
Staff job roles will also need to be separated into those roles which are directly contributing activities and those which are indirectly supporting activities.
Our advice is to keep and maintain contemporaneous time-keeping systems however formal timesheet system is not always necessary.
If there are no time recording records in place staff time will need to be allocated on a just and reasonable basis.