SR&ED claim process

2. Connect the source record

Collect the records that show the plan, experiments or analysis, results, people and time. Keep them with the project they support. The documentation guide covers useful evidence.

If your team needs a place to start recording work, the free SR&ED project and time logs give you a structure for project notes and hours. Keep the original records alongside any summary you prepare from them.

In SREDlog evidence management, the preparer reviews each proposed project link before using it in the claim.

3. Write the technical narratives

Draft lines 242, 244 and 246 for each project, within the word limits, in specific and cautious language. See the T661 guide. Keep a list of statements that still need a source or client confirmation. The output of this step is a reviewable project description with its supporting record.

4. Calculate the expenditures

Identify the allowable expenditures and choose the traditional or proxy method. The calculation can include more than salaries, contracts and materials, and the rules vary by category. These amounts flow into Form T661. Reconcile the source figures and document the basis for each allocation before approval; time review software and the hours import guide explain SREDlog's labour workflow.

5. Calculate the investment tax credit

Corporations use T2 Schedule 31 to calculate the federal ITC from qualified expenditures, with applicable provincial or territorial schedules handled separately. SREDlog prepares T661 and supported form drafts for review. The financial reviewer checks that the project record, expenditure totals and schedule inputs describe the same claim.

Before filing: hand over an exact version

Give the filing accountant the reviewed forms, expenditure reconciliation, supporting schedules and a clear list of unresolved questions. Record who owns each question and which version was approved. Client confirmation of facts and professional approval of the claim are separate decisions.

SREDlog's accountant summary and filing snapshots support that handoff. Accounting firms can use the summary alongside their existing T2 process; the software does not submit the return.

6. File with your T2 return

File the prescribed SR&ED forms with your corporate return by the reporting deadline, generally 18 months after a corporation's fiscal year-end. Information filed after the deadline may not be accepted. See deadlines.

7. Track processing and retain the record

The CRA service standard is 60 calendar days for a complete claim accepted as filed and 180 calendar days for a complete refundable claim selected for review. The CRA commits to meeting these standards 90% of the time. Retain the final forms and source records in case the claim is reviewed later; see the review guide. A review workspace can organize a later request against the filed version without rewriting that original record.