How can accurate apportionments be made when a company has not kept timesheets?

It is extremely important that any company intending to make a Research and Development (R&D) tax relief claim considers keeping detailed records. However, keeping timesheets or other time management records is not always possible, accurate or appropriate.

HMRC generally accepts that a first-time claimant may not have kept records specifically for the purpose of claiming R&D tax relief. In these cases, it is important to dig out any records that were kept should HMRC ask for proof. These records may include emails and other internal communications that demonstrate the activities and time spent by persons on projects, release notes, or product roadmaps.

For companies already familiar with claiming R&D tax relief, it is well worth spending some time devising a process that allows detailed records to be continuously collected.