R&D Tax Services

• R&D tax refund for small business - 18.5% net benefit and up to 43.5% refundable cash offset
• R&D tax claims for large business - 8.5% and potentially 16.5% net benefit non-refundable tax offset (R&D intensity)

With Thread's tailored guidance, you can strengthen R&D capability and enhance benefits.  Thread will build trust by demonstrating depth of experience, and anticipating your needs on a timely basis. Through Thread's close working relationships with AusIndustry and the ATO, I will ensure that you benefit from:

• Guidance on industry R&D claim trends
• News, alerts and other information on AusIndustry and the ATO’s definition, interpretation and practical application of the R&D program

Managing R&D claims under the R&D Incentive requires strategic planning. This must occur upfront and requires ‘buy-in’ from your team at the earliest stages of your projects. The continuous education of staff involved in the R&D claim process is a key part of Thread's methodology. It ensures that maximum value is derived from all meetings.  

Thread services can include either fully 'in-sourced' R&D applications or health check review:

Technical project scoping:

• Real-time documentation and substantiation of R&D activities
• Interviews with technical, tax and finance personnel to identify and scope eligible R&D projects.
• Project documentation review across all your operations.
• Scoping assessment of projects for eligibility and risk.
• Delineation of core versus supporting activities.
• Preparation and/or review of project descriptions for lodgement with AusIndustry.
• Preparation of applications for registration.
• Compilation of relevant documentation to assist audit readiness.
• Identification of opportunities for process consolidation and improvement.

Expenditure scoping:

• Real-time documentation and substantiation of R&D expenditure
• Meet with tax/finance accountant(s) and obtain expenditure information.
• Review R&D expenditure and assess eligibility.
• Prepare preliminary calculations, including the value of the claim.
• Determine eligibility of expenditure and apply costing methodology.
• Prepare or review the final calculation of the R&D tax incentive claim.
• Prepare the R&D tax schedules for lodgement with the ATO.

Final R&D lodgement: 

• Submit the final version of the R&D tax schedules and applications for registration for your review.
• Lodge the applications for registration once we have obtained approval.
• Work with your team throughout the R&D claim process to collect documents and materials required to substantiate your R&D claims. 
• At the end, we can review and collate all substantiation materials and position papers, as needed.

R&D Due diligence, tax treatment, valuation or related services:

• Whether sell or buy-side, Thread can assist with all aspects of R&D due diligence and valuation services.
• R&D clawback, expenditure accounting treatment under AASB 138,  feedstock adjustment, scope of core activity and supporting activity assessment, IP ownership, corporate structure, aggregated turnover, contractor expenditure and ancillary R&D assessments may be critical to your R&D application.  Don't let these issues fall through the cracks of the R&D review.