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HMRC's attitude to R&D claims has hardened.  Although we're seeing fewer challenges to claims over the last 6 - 9 months, enquiries are now a lot more rigorous than they have been in the past.  Caseworkers routinely ask to see the evidence behind every aspect of the claim and without that, the claim will fail.  A lot of this evidence can't comfortably be put in place after the event.  This practical session will show you what 'good' looks like in terms of records, so you can help clients get ahead of the inevitable challenge and build robust R&D claims that stand up to scrutiny without drowning in admin. 

By the end of the session, delegates will have a clear understanding of:

• What HMRC asks for, and what they actually expect. The interaction between the general CTSA record keeping rules and the specific expectations in HMRC's R&D manuals, and how well they align with what caseworkers ask for. 
• Core technical evidence for qualifying projects.  How to tie records to the DSIT Guidelines, documenting advances, uncertainties, competent professionals and boundaries using emails, tickets, design notes, test results and decision logs. 
• Financial records that support the numbers. Linking the claim back to payroll, time records, resource allocations, subcontractor and EPW costs, consumables, etc and how to evidence apportionments in a way HMRC will recognise as reasonable.  Spoiler - blanket percentages are dead. 
• Pragmatic approaches for SMEs and mid-tier clients. Lightweight templates and processes that fit with existing project and finance systems, so clients can keep adequate R&D records without adopting additional systems or imposing a new culture on the business. 
• Dealing with weak historic records in HMRC enquiries. How far can you reconstruct records, what to say when evidence is patchy and how to use better record keeping to reduce risk, penalties and adjustment in future periods. 

Delegates will leave the session able to:

• Explain clearly to client’s what evidence HMRC expects to see for an R&D claim in plain, non-technical language, 
• Specify a minimum 'good-enough' R&D record keeping standard and translate that into practical checklists and templates,
• Review existing client records and spot red flags that increase enquiry and adjustment risk, 
• Work with clients to embed proportionate project and cost tracking into their normal systems and routines, and 
• Handle HMRC requests for records more confidently, including where past evidence is incomplete, and use that interaction to strengthen future claims. 

This session is designed for general practice managers and partners with clients that are active in innovation, tax and R&D specialists in firms that prepare or review claims and finance directors in companies that rely on innovation incentives as part of their funding mix. 

Course level: Intermediate