SR&ED documentation
Learn which contemporaneous records support a claim and how to keep them connected to the work.
A polished filing-time narrative cannot replace a missing project record. The useful evidence is usually less polished: test results, design changes, notebooks, commits, time entries and the decisions recorded while the work was underway.
Keep enough context to show what happened, when it happened and how the claimed costs were calculated.
Good records shorten the distance to the claim
The CRA's T661 guide tells claimants to use existing materials and documents generated during the work and to retain them for verification. A filing-time summary is more useful when it points back to those original records.
Useful evidence already lives in the project
- Planning records such as objectives, hypotheses, proposals and design documents.
- Test plans, measurements, results and notes explaining the next iteration.
- Source-control history, issue discussions and design tickets.
- Lab notebooks, prototype records, photographs and engineering drawings.
- Time records that connect people and hours to particular work.
- Emails and meeting notes that record a technical problem or decision.
Track labour close to the work
Labour can be a significant part of a claim, so the allocation method needs support. Hours recorded against specific projects and activities are easier to review. Where the record is incomplete, other source material can inform a reasonable allocation, but keep the method, assumptions and approval with the result. SREDlog prepares proposed allocations for review; only approved hours enter the calculation.
How long to keep records
Businesses generally must keep required records and supporting documents for six years from the end of the last tax year they relate to. Different periods can apply in specific circumstances.
Gaps that create filing-time reconstruction
- Time that isn't recorded against specific SR&ED work.
- Narratives with no underlying evidence to support them.
- Evidence that was created at filing time rather than as the work happened.
- Costs that can't be reconciled to payroll, contracts or invoices.
Frequently asked questions
There is no single evidence format for every project. The records need to substantiate the work performed and the expenditures incurred, and the CRA's T661 guide lists examples such as planning records, test results, source code, time records, contracts and financial support.
Businesses generally must keep required records and supporting documents for six years from the end of the last tax year they relate to. Different periods can apply in specific circumstances.
The records must support how claimed labour was determined. Timesheets can do that directly; if another method was used, keep the underlying records and be prepared to explain the estimates and how they were calculated.
You can prepare summaries at filing time, but records created while the work was underway generally provide stronger support. A summary should point back to those original records.
It analyzes uploaded evidence, links it to projects, people and claimed amounts, and assembles an indexed review package from the records your team has approved.
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This guide is general information, not tax advice. SR&ED rules, rates and limits change, so confirm the current figures with the CRA or your advisor before you file.