You will not be prevented from claiming research and development (R&D) tax relief if you have no records of research and development.
HMRC takes a pragmatic approach to companies claiming R&D tax relief. There is therefore no expectation of claimants that are making their first claim to have thorough records of their R&D. Inevitably you will have some records such as planning sessions, meeting notes, test results and these can be used as evidence should HMRC want further information.
For experienced claimants, detailed and systemised records are expected to be kept.
Appropriate records to keep for R&D tax relief
Timesheets or systems that record timekeeping are often perceived as an appropriate record-keeping system for R&D claims. These however may not be the most suitable approach.
The key is to implement an appropriate real-time approach that best suits your business to identify R&D qualifying projects and costs.
