SR&ED ACADEMY

DOCUMENTING YOUR WORK

DEFINING YOUR SR&ED PROJECT


A Business Project vs a SR&ED Project

Imagine you’re building a new app. Half the team is working on solving a tricky scaling problem in the database, while the other half is designing the login screen. Only one of those is SR&ED. Knowing the difference between the two up front will save you a world of pain later.

Not every part of a business project qualifies as SR&ED.

BUSINESS PROJECT

business project may include design, customer research, marketing, or operations.

SR&ED PROJECT

SR&ED project is only the portion where your team faced technological uncertainty, investigated it systematically, and gained new knowledge.

Over-claiming is one of the fastest ways to trigger CRA scrutiny. 

Take a look at your project management tools – are SR&ED eligible tasks lumped in with non-eligible tasks in one big project category? That’s a red flag. Without detailed time tracking, CRA can’t tell which hours or costs were tied to SR&ED work.

Up-Front Action Steps

  • Define your SR&ED project(s). All the activities within a particular SRED project must be related to the same advancement.
  • Separate out eligible work from non-eligible work and make sure they are documented and defined.
  • Make sure your team understands this distinction before logging time or expenses.
  • Review CRA’s Grouping Projects section for a discussion on how to group and define projects.