R&D Tax Credit Audit Tool

Would your company survive an R&D Tax Credit audit? Answer the questions to find out.

Section 1: Project Eligibility

1. What was the primary purpose of your project?
2. Could a competent professional in the field have easily figured out how to achieve your technical goals?
3. Did your team follow a systematic process of experimentation and analysis?

Section 2: Cost Eligibility

4. How did you determine the personnel costs included in your claim?
5. For staff not 100% dedicated to R&D, how did you allocate their time?
6. What other costs (consumables) are you claiming?

Section 3: Documentation and Records

7. What kind of documentation do you have for the project?
8. Can you easily link the costs in your claim to specific R&D activities?
9. Who was the 'Technical Lead' that guided the technical aspects of the project?

Low Risk (0-10 points): Solid Situation

Your score is . Your answers suggest that you have a robust process for claiming R&D tax credits. Your documentation, cost tracking, and understanding of project eligibility seem well-aligned with an auditor's expectations.

Next Step: Continue with your excellent record-keeping practices. Ensure your technical report clearly tells the story of your R&D project, from initial uncertainty to final conclusion.

Medium Risk (11-25 points): Caution Needed

Your score is . Your claim may be valid, but there are potential weak points an auditor might challenge, particularly regarding documentation or cost apportionment. More detailed evidence may be required.

Next Steps: Focus on strengthening your documentation. Draft a technical report retrospectively if necessary. Review cost calculations and ensure you have a reasonable, logical basis for every estimate made. Consider having a specialist review your claim.

High Risk (26+ points): Urgent Action Required

Your score is . Your answers indicate a high risk of your claim being rejected. There appear to be significant gaps in eligibility, costing, or evidence. Submitting a claim in this state could lead to an enquiry and potential penalties.

Next Steps: Do not submit the claim without a fundamental review. Critically reassess whether your project meets the strict definition of R&D. You should urgently seek advice from a reputable R&D tax credit specialist.