How to Make an R&D Tax Claim in 1 Day

29 Apr 10

By Caroline Hughes of R&D SmartTax www.smarttax.com.au

It’s not as hard as it seems. Really. You may be thinking that with only a few days until 30 April 2010, the big R&D deadline for the 2009 financial year, that your chances to make an R&D Tax Claim have gone until next year, but think again. There is still plenty of time. It is entirely possible to make an R&D Tax Claim in 1 Day.

Would you believe that it happens all the time? And not just small businesses either. I know from my many years at one of Australia’s leading R&D tax specialist practices at one of the Big 4 accounting firms that on 30 April the Partner will still be doing the ring around to see if any potential clients want to make a claim at the last minute. Claim in 1 day? Try claim in 1 hour – that’s my record!

So how can this be possible? It is because the R&D Application that gets lodged on 30 April actually doesn’t contain a lot of technical information. Of its 12 pages, 6 contain general company and contact details, while only 3 of the others contain real project information. And the project information is only brief, being project name, number, a one sentence technical objective and some broad activities with estimated dates. If you know exactly what you spent on each project, then it is entirely possible to prepare the R&D Application and lodge it in one day.

Not sure what you spent? Then don’t elect the R&D Tax Offset, choose the R&D Tax Concession option. Sure, the benefit isn’t as high (7.5% versus 37.5%) but at least you will be getting that 7.5% instead of watching 30 April slip by and not getting anything. Then you can put estimated numbers into your R&D Application.  Simply fix up your actual numbers for your tax return. Other tips that you can use to get your R&D Application in on time are to lodge online, or if you choose, get in contact with your local AusIndustry office www.ausindustry.gov.au and make arrangements for fax or other types of copies to be sent through. Just make sure they’re in by 5pm!

Of course making an R&D Tax Claim is not much good if you are not sure whether you are eligible or not. That’s where a handy, dare we say, innovative(!) new tool called R&D Eligibility Wizard can help you. Instead of spending hours reading tax literature or thousands on an R&D tax consultant, find out the eligibility of both your company and any number of R&D projects in minutes with a few clicks of the mouse.  With the confidence of eligibility, then lodging your R&D Application is as easy as filling in the form and handing it in.

To sign up to the R&D Eligibility Wizard or to read more about the R&D Tax Breaks go to www.smarttax.com.au. Please also contact us at any time if you need a hand to get your R&D Application in.
All the best for a big refund!
Caroline and the R&D SmartTax Team.
caroline.hughes@smarttax.com.au