It’s time to get ready for the new financial year and a new R&D tax incentive claim.
The FY18 year will use the same R&D tax rates of:
- 43.5% for companies under $20m aggregated turnover, and
- 38.5% for companies with over $20m aggregated turnover (non-refundable)
Recent announcements as part of the May Federal budget highlight an increase in attention by ATO and AusIndustry on compliance. This means you need more detailed documentation and focus on claiming only eligible, directly related R&D expenses that can be supported by evidence.
Things to do before 30thJune 2018:
- Make payments to associates for salaries, super and any reimbursed costs
- Update timesheets with hours spent on R&D for anyone who is not in a 100% R&D role
- Get all contractors to provide detailed invoices
- Update employee contracts with accurate job descriptions
- Log all test results (failures and successes) and capture knowledge gaps in a easy to access file
- Tell your accountant that you want to prepare your company accounts for an early lodgment
Book your R&D tax Kickoff session: The Treadstone R&D tax team have commenced writing up applications for FY18 already! Give us a call to get started now.
Note: Rate changes from the May Budget to the R&D tax incentive are expected to come into law and be applied to FY19 tax year. For more information see our website http://www.treadstone.com.au/rd-tax-incentive-2018-rate-change-budget/