Have you had a bad SR&ED tax claim experience in the past? Unfortunately, one bad SR&ED experience can cause a complete loss of faith in the program and stop companies from claiming in future years. That’s a lot of unclaimed extra funds! Luckily, there are steps you can take to make the claim process a bit easier.
In the first part of our 2-part series, Tips for a Smoother SR&ED Tax Claim Experience, we looked at the importance of documentation and tracking as well as being honest about the projects you’ve been working on – SR&ED is not the time to be humble. Well, we think 3 points just isn’t enough when it comes to claiming, so here are a few more to help things along.
The SR&ED claim process can be quite confusing. There’s a lot of jargon, paperwork and rules that can be frustrating and difficult to understand if you don’t deal with it every day. A SR&ED consultant knows this and will be more than happy to answer any questions or explain any details. They want you to be comfortable with the process and love to educate when needed.
It’s true your consultant is going to do most of the work, but a client must commit to help and possibly change their routine a bit. There needs to be a technical interview, and it’s best to get staff on board to help with tracking their own hours and activities. Proper documentation is imperative in the SR&ED process, so a little additional time spent on the claim could make the difference between a positive outcome and a more complicated one.
You’ve already taken the time to pick the right consultant, and now is the really hard part – trusting them. The main goal of a consultant is to get you what you deserve – money or credits from the government for the work you’ve done – and to make the process as easy as possible for you. Finding a consultant that offers a contingency fee structure may be the best way to feel confident that they have your best interest at heart. With a contingency fee, the consultant doesn’t get paid unless the outcome is favourable. The consultant is the expert, so rely on them to carry the weight of the process including the financial sheets, writing the report and, most importantly, trust them with your information. Your consultant can’t get you the biggest claim if they only have half the story. Just remember that they’re not there to criticize your work or steal your ideas – they just want to help.
To learn more about the SR&ED program and how to maximize your claim, contact one of our BeneFACT company SR&ED experts today.