R&D Tax Incentive - Comfort Letter

🌟 𝐀𝐥𝐥 𝐀𝐛𝐨𝐮𝐭 𝐭𝐡𝐞 𝐑𝐃 𝐓𝐚𝐱 𝐈𝐧𝐜𝐞𝐧𝐭𝐢𝐯𝐞 𝐂𝐨𝐦𝐟𝐨𝐫𝐭 𝐋𝐞𝐭𝐭𝐞𝐫 🌟
Securing finance against your R&D tax refund is a game-changer for many Australian businesses, but it requires trust - and that's where a Comfort Letter comes in. In this video, we’ll dive into the purpose of the R&D Tax Incentive Comfort Letter, what’s involved in getting one, and why it’s essential for financing based on your anticipated tax refund. Bulletpoint is here to simplify this process, ensuring your R&D claim meets the rigorous standards set by AusIndustry and the ATO, giving lenders confidence in your claim.
🟢 𝗪𝐡𝐚𝐭 𝐢𝐬 𝐚 𝐂𝐨𝐦𝐟𝐨𝐫𝐭 𝐋𝐞𝐭𝐭𝐞𝐫? 🟢
A comfort letter is an assurance document from an R&D advisor that confirms your claim’s compliance with R&D Tax Incentive requirements. It acts as a third-party verification that your R&D activities and expenses meet ATO and AusIndustry standards, reducing the lender’s risk when financing against your tax refund. In other words, it’s a critical piece of documentation for businesses looking to secure advanced R&D finance.
💼 𝗪𝐡𝐚𝐭 𝐃𝐨𝐞𝐬 𝐭𝐡𝐞 𝐂𝐨𝐦𝐟𝐨𝐫𝐭 𝐋𝐞𝐭𝐭𝐞𝐫 𝐏𝐫𝐨𝐜𝐞𝐬𝐬 𝐈𝐧𝐯𝐨𝐥𝐯𝐞? 💼
Here’s what goes into issuing a comfort letter:
Review of R&D Activities - We assess core and supporting R&D activities to ensure they align with AusIndustry guidelines. Only legitimate R&D work qualifies, giving confidence to lenders.
Expense Review - We evaluate R&D expenses to confirm they meet ATO standards. This includes making sure costs are strictly tied to R&D activities and not general business expenses.
Evidence Gathering - Additional evidence may be needed to support your R&D claims, so we’ll request relevant documents like timesheets and financial records to strengthen your application.
Evidence Review - We review all provided documentation, ensuring resources were allocated correctly to R&D activities. This step is crucial for the letter’s reliability.
Issuance of the Comfort Letter - Once we’re satisfied that your claim is robust and compliant, we issue the comfort letter, summarising our findings and giving lenders the assurance they need to proceed with financing.
📄 𝗗𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐬 𝐘𝐨𝐮 𝐍𝐞𝐞𝐝 𝐭𝐨 𝐏𝐫𝐨𝐯𝐢𝐝𝐞 📄
To facilitate a thorough review, here’s what you’ll need to provide:
Profit and Loss Statement - Covering your R&D activities.
Timesheets for R&D Staff - Documenting hours spent on R&D tasks.
Payroll Summary - Details of payments related to R&D personnel.
Previous R&D Tax Incentive Application - A copy of your most recent application.
AusIndustry Registration - Proof of your latest R&D registration.
Accountant’s Report - Your current loss position and ATO debt status.
Associate Payments Details - Identification and payment records for associates involved in R&D.
This information is critical to validate your R&D claim and issue a reliable comfort letter. With it, you’re on the right path to securing the R&D finance you need.
🕒 𝗧𝐢𝐦𝐢𝐧𝐠 𝐌𝐚𝐭𝐭𝐞𝐫𝐬 🕒
Once all documentation is received, we complete our review and issue the comfort letter within two weeks. This quick turnaround allows you to secure the financing you need without unnecessary delays.
💸 𝗖𝐨𝐬𝐭 𝐨𝐟 𝐭𝐡𝐞 𝐂𝐨𝐦𝐟𝐨𝐫𝐭 𝐋𝐞𝐭𝐭𝐞𝐫 𝐒𝐞𝐫𝐯𝐢𝐜𝐞 💸
Our fee for the comprehensive comfort letter service, including the full review of R&D activities and expenses, is $2,750. Payment can be easily completed through Stripe, and this cost ensures a thorough and efficient review that’s essential to supporting your finance application.
🔒 𝗔𝐓𝐎 𝐂𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞 𝐚𝐧𝐝 𝐇𝐞𝐢𝐠𝐡𝐭𝐞𝐧𝐞𝐝 𝐒𝐜𝐫𝐮𝐭𝐢𝐧𝐲 🔒
The ATO has increased scrutiny around R&D claims, particularly associate payments. To ensure your comfort letter is compliant and robust, we recommend including detailed documentation, such as contracts, receipts, and payment records. This helps safeguard your R&D claim and minimises audit risks.
🚀 𝗪𝐡𝐲 𝗖𝐡𝐨𝐨𝐬𝐞 𝐁𝐮𝐥𝐥𝐞𝐭𝐩𝐨𝐢𝐧𝐭 𝐟𝐨𝐫 𝐘𝐨𝐮𝐫 𝗖𝐨𝐦𝐟𝐨𝐫𝐭 𝗟𝐞𝐭𝐭𝐞𝐫? 🚀
At Bulletpoint, we bring unmatched expertise in R&D compliance, timely and thorough reviews, and a commitment to transparency. With years of experience in helping Australian businesses secure R&D financing, we’re here to make your comfort letter process simple, accurate, and stress-free.
For any questions or to start your comfort letter process, don’t hesitate to reach out to us here. Let us help you secure the R&D finance that fuels your business growth!