What information do I need to keep?

There is no record keeping requirement specifically for the purposes of claiming R&D relief, but the general Corporation Tax Self Assessment (CTSA) requirement to keep sufficient records applies. You should already be aware of what records you need to keep to support claims for expenditure under CTSA (detailed in HMRC’s Enquiry Manual at EM1001).

If an enquiry is opened, then you will be expected to have adequate documentation to support the claim contained in your tax return. It is not expected that you will need to create new primary records solely for making an R&D tax credit claim. But it may be important to maintain records you do create in an accessible way.

The R&D template (Tool A) sets out the questions to answer when considering whether R&D is being done. From this you can see the kinds of information that the Revenue will be looking for should an enquiry be opened.

Therefore, information you might wish to retain includes:

• Project planning material covering the types of questions asked in the R&D template (Tool A)
• Notes on how the uncertainties and other challenges were overcome (or not)
• Information about any major changes to the aims, or new uncertainties that have been encountered
• Details of any patent applications filed, or document evidencing ownership of any intellectual property
• Internal progress reports