IE-Audit-Checklist - Swanson Reed | Specialist R&D Tax Advisors

Section 1: Project Eligibility

1. What was the main purpose of your project?

To sort out a specific scientific or technological uncertainty. To make a new product or process using standard enough methods for our industry. To do market research or tweak a general business process.

2. Could a competent professional in the field have easily figured out how to achieve your project's technical goals?

Not at all, the solution wasn't out there and couldn't just be pulled from a textbook or public knowledge. Probably, with a bit of standard research and applying known principles. Yeah, it was a handy enough engineering or software job.

3. Did your team follow a systematic process of experimentation and analysis?

Yes, we took a structured approach—forming a hypothesis, testing, and tracking results to guide development. We did a bit of trial-and-error but didn't bother formally writing the process down. No, we just built the final version straight off the bat from a clear plan.

Section 2: Expenditure Qualification

4. How did you figure out the staff costs to include in your claim?

We used timesheets or a similar solid system to track the exact hours folks spent doing actual R&D. We took a fair guess at each person's time based on what their role was. We just claimed a flat percentage of the whole technical team's wages.

5. For staff who weren't 100% focused on R&D, how did you split out their time?

Our records clearly split their R&D work from their day-to-day operations. We estimated a percentage split without hard records to back it up. Sure we claimed their whole salary, even though they were doing other bits and bobs.

6. What other costs (like materials or overheads) are you claiming?

Only materials and overheads (like power) that were actually used up or transformed in the R&D process. We threw in some general business overheads and admin costs. We claimed the cost of materials that ended up in the final product we sold to customers.

Section 3: Record Keeping

7. What kind of documentation do you have to hand for the project?

We have proper technical docs, test plans, results, meeting minutes, and a technical narrative explaining the uncertainty. We have a few emails, a presentation or two, and a general project plan. We've very little written down and would be relying heavily on the lads' memories.

8. Can you easily link the costs in your claim to the specific R&D activities?

Yes, our accounts are set up to track R&D expenses per project, and we can provide a clear paper trail of invoices and payroll. It'd be a fierce amount of work to piece together the financial evidence from different places. No, our R&D costs are all lumped in with our general day-to-day running costs.

9. Who was the "Competent Professional" leading the technical aspects of the project?

We have a specific person with the right qualifications and experience who can talk through the technical head-scratchers with a Revenue auditor. The project was managed by someone who doesn't have a deep technical background in this exact field. We don't really have a designated technical lead.

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Low Risk (0-10 points): Grand Job

Your score is . You're looking fairly sound. Your answers suggest you have a robust process for claiming R&D tax credits. Your documentation, cost tracking, and understanding of project eligibility seem well-aligned with what Revenue expects to see.

Next Step: Keep up the good work. Make sure your technical narrative tells the full story of your R&D project, from the initial uncertainty right through to the final conclusion.

⚠️

Medium Risk (11-25 points): Mind Yourself

Your score is . Your claim might be genuine, but there are definitely weaknesses a Revenue auditor could poke holes in, especially around documentation or how you apportioned costs. You might be asked to provide more detailed evidence.

Next Steps: You'd want to tighten up your documentation. Retrospectively write a technical report if you need to, review your cost calculations, and make sure your estimates have a solid rationale. Consider getting a specialist to cast an eye over it.

🛑

High Risk (26+ points): Stop the Lights

Your score is . Your answers point to a very high risk of Revenue rejecting your claim. There appear to be massive gaps in eligibility, cost calculation, or evidence. Submitting a claim in this state could land you with an inquiry and potential penalties.

Next Steps: Do not submit your claim without a fundamental review. Critically re-evaluate whether your project meets the strict definition of R&D. You urgently need to sit down with a proper Irish R&D tax credit specialist to see if you have a leg to stand on.

We're not around right now. But you can send us an email and we'll get back to you, asap.

Revenue R&D Tax Credit Audit Checker

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