by Simon

March 31, 2020

How to file a staff members time in a RD task - R&D tax credits explained by Hamilton Wood & Company Nottingham

For the purposes of R and D, recording an employees time has to be representative of the genuine time spent involved directly or indirectly on a qualifying project.

There are a large number of totally free tools which will help capture the actual time an employee utilizes on a project and may be used.

You’ll be able to record 230% of director and staff salaries who are actively involved in a Research and development task. Workers costs are a permitted expense for the purposes of R&D.

Quite often workers could be working on any number of different things in businesses.

It is very important that a fair appraisal of their time is determined for inclusion in your claim.

There are 2 classes of staff expenses, these are:

  • Staff making contributions to figuring out the technical uncertainty in the project directly
  • And then support staff who are working in the work in some other capacity e.g. a secretary loosely linked to a task in some capacity. In other words, a worker related to qualifying indirect functions.

Whenever calculating the numbers you need to evaluate the nature of their role in the plan and also the length of time these people were engaged.

A few important questions to ask concerning the staff member under consideration:

  1. How much time did these individuals spend involved in the endeavour?
  2. What qualifying jobs did the staff member focus on during the timeframe?
  3. Precisely what Research & Development functions did the worker attempt?

Logging staff member expenses in a project

Naturally, attempting to keep control of every intricate part of an R&D development project can sometimes be difficult.

Let’s face the facts you’ve got a company to take care of and paralysis by analysis has finished many organisations.  All too often ‘business as usual’ gets in the way.

Most companies have spent company funds on campaigns and only learned after the occasion that they may manage to recover some of their expenses.

Trying to unravel exactly the amount of time an employee has used on an undertaking can be challenging.

It is extremely important that tasks are considered correctly and workers units of time are noted down in the correct way.

Make certain there is some corroborating information to assist and if you’re uncertain, we’re glad to help.

Where granular timekeeping data are not readily available, consider what records can be found and employ a degree of necessary thinking. Can you reasonably warrant 100% of workers time through the entire length of the undertaking?

As we have mentioned, you can get free tools available that can help with the tracking of plans. Clockify is one such tool and may be found here: https://clockify.me/

Where we fit into the process is that we actively help our customers develop better methods so that each year your award is safely optimised ensuring that no stone stays unturned.

When recording your workers time in a project, it helps you to do this at the same time alongside the project.

Should you require help to ask what you need to be recording and when to feel free to call one of our helpful consultants – click here to request a complimentary callback.

Depending on guesswork to assess employees time is risky territory!

You ought to have some reasonable justification for the allowance of time implemented.

We suggest that you look at the undertaking in its entirety and then work backwards from that point. Who really needs to be involved and why?

At all times, you should be certain that the time calculated figure is accurate so you don’t falsify your claim which could leave your business subjected to a minefield of risk in the future with resultant fines, penalties, plus interest if incorrect.

Our team are happy to ‘hold your hand’ and provide the pragmatic assistance and support you need to safely improve your claim.