Common Mistakes in SR&ED Tax Credit Applications

Filing SR&ED tax credit applications can be tricky, and small errors often lead to delays or lost refunds. A common mistake is providing vague technical descriptions that don’t clearly explain the uncertainty, experimentation, and results of your R&D work. Another is overlooking eligible expenses such as contractor fees, materials, or overhead. 

Businesses also run into trouble when they miss the strict CRA deadlines claims must be filed within 18 months of the fiscal year-end. Poor record-keeping is another pitfall; without dated notes, timesheets, and cost tracking, it’s harder to prove eligibility. To improve your chances, document your projects thoroughly, track all qualifying costs, and confirm every deadline well in advance. Avoiding these errors can make the process smoother and help you maximize your claim.