With the New Year now behind us, many organizations are turning their attention to closing the year-end and starting R&D Tax Credit calculations. Many governments at the federal, state, provincial and regional level have tax credits available under certain conditions. TimeControl is often used for R&D Tax Credit tracking because of its ability to track people and tasks at levels that will pass an R&D Tax Credit audit.
When creating an R&D Tax Credit tax return, several elements are almost always required. There must be a plan that outlines what is intended, when it should occur and what type of resources are used. There must be timesheets to track the time spent on the tasks of the R&D projects along with who did those tasks, where those resources are based and how they are paid. Finally, there must be an accounting of the value of the work that matches the timesheets, the payroll and the job costing, and which can be associated back to the original plan.
TimeControl is ideally suited for this role. With links for popular project management tools like Microsoft Project, Primavera, BrightWork and more and to ERP systems like SAP, Oracle and Microsoft Dynamics, TimeControl can be the auditable trail of project actuals that serve both the Project and Finance processes within the business.
We keep an R&D Tax Credit Resource Portal on the TimeControl.com site at TimeControl.com/use-cases/r-and-d-tax-credits. It includes recently updated White Papers, Slide presentations and screen shots of TimeControl reports which can be requested from HMS Support.
Find out more on the TimeControl.com site or contact us at email@example.com to see how TimeControl can help with your R&D Tax Credit reports moving forward.
We were delighted this week to receive a letter from Andre Richard, the Director of Research and Development at EXFO a worldwide design and manufacturing company specializing in telecommunications. You may not know EXFO yourself but your phone probably does. EXFO works with suppliers like Verizon, AT&T, Vodafone, Orange and many, many more on testing and service assurance systems.
While all letters of praise from clients are extremely exciting to the HMS Staff and TimeControl team, Andre’s letter is particularly heartwarming because of the long standing use of TimeControl at EXFO. “We have used TimeControl for more than 20 years to capture the efforts of our R&D team,” Andre explains.
TimeControl has been used at EXFO as part of their research and development tax credit applications and has passed the test of audits more than one.
We’re very proud to count Andre and the entire EXFO team among our many clients and look forward to many more years of working together.
You can read Andre’s letter in its entirety at:
In today’s economy, maximizing innovation can make the difference between success and failure. One way governments help companies to achieve this goal is through Research and Development tax credits. There are R&D tax credit programs in many countries and regions including the US, Canada, Australia, the UK and the EU. Governments have determined that offering R&D tax credits benefits citizens in numerous ways including promoting high tech jobs in the region, improving competitiveness of local firms and the long term benefits that come from capitalizing on cutting edge technology.
Every R&D program has reporting standards and controls that allow the government giving the credit to ensure that the funds are being spent on eligible R&D activities.
While there are different rules for R&D tax claim documentation in different jurisdictions, one thing is common: tracking the hours of your R&D workers with timesheet documentation is the best way to prove that the appropriate work was completed by the appropriate personnel.
TimeControl has been used for years by organizations in different countries to document R&D tax claims. As an activity-based timesheet, TimeControl is ideally suited to deliver on the three levels of R&D financial audit that we refer to as the Triangle Audit.
The TimeControl website contains an R&D tax claim resource portal with tools, white papers, presentations and examples of how TimeControl can be used to help your tax claim process and to free your technical experts from tax claim paper work and get back to innovating!
To find out more about how TimeControl can help with your next R&D tax credit, see our TimeControl Use Case area for R&D or contact HMS at firstname.lastname@example.org.