Systematic progression of work
Towers Business Development News
For a company to claim the R&D Tax Offset, it is necessary for the Company Directors to ensure that the R&D project has been undertaken on a “systematic progression of work”.
What does this mean?
Identification of the hypothesis or hypotheses that apply to this particular project.
Details of the experiments that have been conducted to prove or disprove the hypothesis including:
- start – finish time
- tasks that were undertaken
- methodology utilised in the experiments
- collaboration with any research organisation or other organisation that have assisted in the experimentation
- observations/evaluation/conclusions from the experiments
- progress that has been achieved
- details of the core R&D costs charged to the R&D project
It’s a good idea to utilise a checklist to ensure that all components of the “systematic progression of work” have been performed. This includes:
- Identify hypothesis
- Details of experiments conducted
- Did the experiments prove or disprove the hypothesis?
- The system utilised for recording the time and costs of the experiments is functioning satisfactorily
A team meeting should be held at least monthly, to review the results from the experiments. This would include record update relating to:
- The R&D activities undertaken
- The hypothesis for individual research and development projects
- Full details of the experiments that were conducted
- Logical conclusions developed
- Analysing whether this research could be developed into a new product, process or service that the company could earn revenue from and have a valuable asset.
Towers Business Development can assist you with the R&D process, to successfully undertake R&D activities, as part of the strategy to develop valuable assets for the company and also claim the R&D Tax Offset.
