Various methods can be utilised to determine the extent of Research and Development (R&D) work performed by each staff member. The allocation of an employee’s time will rely on the type of R&D activities undertaken and the available records documenting how staff members spent their time on these specific tasks.
You need detailed records of the R&D activity of each member of staff. We recommend you use a robust timekeeping system.
In cases where there are limited or no records available to verify the time spent on R&D activities, some degree of estimation may be necessary when allocating staff time. HMRC is understanding in such situations, particularly for first-time claimants who may not have established comprehensive record-keeping practices at the beginning of their R&D projects.