There is a strict deadline for filing SR&ED claims. This deadline is 18 months following the end of a fiscal period/tax year. The regular tax filing deadline for corporations is 6 months after the end of a fiscal period/tax year. The SR&ED deadline is one year thereafter.
It is vital to meet this deadline; as SR&ED claims filed after this date for a period will not be considered by the Canada Revenue Agency.
Referring to the CRA service standards, typically, it can take between four months to a year for your claim to be processed. The length of time it takes for your claim to be processed will depend on what type of SR&ED claim you have made.
With that said, the stronger your SR&ED claim is, the quicker the CRA may be able to process it. In some cases, we have seen claims being accepted as filed and processed in as little as 20 days from the date of filing.
On average, we only require between 5-10 hours of client input throughout the entire claim writing process.
There is some complexity in submitting a SR&ED claim. Submitting the claim involves making a series of complex amendments to a regular corporate tax return that in most cases requires the careful eye of qualified and experienced tax and accountancy professionals
While submitting a SR&ED claim can be complex, it doesn’t have to be. We will work with your team to compile all of the necessary details to support your claim and handle the heavy lifting of writing your case and submitting it to the CRA, and making necessary amendments to your corporate tax filing.
This is a commonly asked question when it comes to SR&ED claims, and the answer is yes! Just because your research has not dealt with a physical product or process, it may still qualify for SR&ED. Some examples of qualifying SR&ED claims in software development and tech include; developing new algorithms, advancing software architecture or design knowledge, integrating disparate systems or improving a product’s speed or efficiency significantly.
To be eligible for SR&ED, your software development activities must involve technological advancements, and involve scientific or technological uncertainties. Much like other industries, it’s crucial to maintain detailed documentation of your activities, including project plans, technical specifications, experimental reports, and any other supporting evidence to demonstrate eligibility when applying for SR&ED.
After you have determined your eligibility for SR&ED, compiled all supporting documentation, and determined your project costs, the next step is applying. This is done by completing the T661 form. Form T661, the Scientific Research and Experimental Development (SR&ED) Expenditures Claim, is the main application form for SR&ED. Within the application, you must provide comprehensive information about your project, activities, and expenditures.
To improve the likelihood of your claim being accepted, ensure that the form is complete, accurate, and supported by the necessary documentation.
No! We charge no up-front costs, and should we fail to identify a claim then we will not charge you a fee at all. In other words, we operate on a ‘No Win, No Fee’ basis.
Also, we do not charge for submission fees so there will be no surprises when it comes to your claim being filed with the CRA.
The government created the SR&ED legislation as an incentive to encourage businesses that are developing new, or appreciably improving existing, products, processes, systems and materials — and thereby increasing the country’s wealth creation capacity.
The CRA’s role in the SR&ED process primarily involves administering and overseeing the program. They determine project eligibility, review claims, perform a technical and financial review based on the claim submitted, and calculate the eligible tax credit.
The representatives from Canada Revenue Agency are therefore very skilled at processing these claims. Our specialist consultants liaise with them daily, on your behalf, and in the unlikely event of any issues being raised, it is part of our commitment to you to resolve them.
Typical SR&ED claim items include staff costs, subcontracting fees, payments to third parties, lease expenditures, materials used in the R&D process and overhead expenditures incurred during the process.
As a specialist SR&ED firm, we have a deep understanding of the legislation and will conduct a detailed audit of your business to ensure that every opportunity for SR&ED tax relief is realized.
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