Unfortunately the majority of advisers operating in the Research & Development Tax Incentive (RDTI) space, rely almost exclusively on your ability to understand how your activities meet the requirements of the program. Generally advisers will expect you to know what R&D you are doing and then be able to explain it to them, so that they can fill out the application or assist you to do so.
These advisers tend not to be experts in R&D (and they would not normally purport to be) so therefore often do not have a full understanding of the programs requirements, though they may certainly be experts in tax legislation. It is important to understand that the R&DTI is primarily an R&D program that is funded through the tax system and it is not a tax program. Some of the biggest problems that advisers face when advising clients on the Research and Development Tax Incentive (RDTI) program include:
Lack of expertise in R&D: Advisers may not have a deep understanding of R&D and may struggle to identify eligible R&D activities for their clients.
Difficulty in interpreting the legislation: The legislation for the RDTI program can be complex and difficult to interpret, making it challenging for advisers to advise their clients on how to claim the incentives.
Difficulty in identifying and documenting R&D expenditure: R&D expenditure can be difficult to identify and document and advisers may struggle to help their clients gather the necessary evidence to claim the incentives.
Lack of access to expert resources to provide up-to-date advice: Advisers may not have access to the latest information, guidance and expert resources to provide accurate and up-to-date advice to clients on the RDTI program.
Lack of understanding of the RDTI program rules: Advisers may not have a full understanding of the RDTI program rules and regulations, which can lead to errors and non-compliance with the program requirements.
Difficulty in identifying eligible R&D activities for clients within different industry sectors: R&D activities can vary greatly depending on the industry sector and advisers may struggle to identify eligible R&D activities for clients in different sectors.
Difficulty in identifying and documenting R&D activities that are conducted overseas: Some R&D activities may be conducted overseas and advisers may struggle to determine eligibility and then identify and document these activities for clients.
Here at R&D Certainty we are specialists in R&D, have staff members with long term experience in the goverance and management of the RDTI program and can provide guidance for your business in creating and planning for eligible R&D that meets the legilative requirements of the program.
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