Skip to content

How R&D claims work

An R&D claim in Flowstate is one project, for one fiscal year, under one R&D framework. Flowstate finds candidates, drafts the narrative, and costs the claim from the effort actually spent on the project.

Frameworks

A framework is a country's R&D tax relief scheme: when its fiscal year starts, its likely credit rates, and the sections a claim's narrative must cover.

FrameworkCountryFiscal year startsDefault credit-rate rangeRequired section
UK DSIT GuidelinesUnited KingdomApril16.2%–27%Scientific or Technological Uncertainty
US IRC §41United StatesJanuary6.5%–10%Elimination of Uncertainty
PT SIFIDE IIPortugalJanuary32.5%–82.5%Incerteza Tecnológica (sections are in Portuguese)
AU R&DTIAustraliaJuly38.5%–43.5%Core R&D — New Knowledge

The credit-rate ranges are only used to show a likely return. They aren't tax advice — your adviser confirms the rate that applies to you.

The eligibility scan judges projects against your default framework. When you create a claim yourself, you can choose any framework.

Claims don't come with a submission deadline. Set one on each claim — see Build an R&D claim.

How claims are found

The eligibility scan reads your projects' tickets, pull requests and descriptions, and judges them against your default framework.

  • It runs weekly, fortnightly or monthly, whichever you choose, and whenever you select Run scan now.
  • It looks at the current fiscal year, and up to three earlier years if you choose. Each year gets its own suggestion.
  • It leaves alone any project that already has a claim in progress for that year.
  • A suggestion you dismiss only comes back if the project changes.
  • A suggestion's spend is an estimate, from the project's effort cost within that fiscal year.
  • The people on your Approval Stage are told about new suggestions.

Accepting a suggestion

Accept turns a suggestion into a claim at Draft, and:

  1. Moves the project onto your R&D cost centre, so its cost shows as R&D rather than CapEx or OpEx on Capitalisation.
  2. Remembers the project's previous cost centre.
  3. Starts drafting the narrative.

If the claim is later rejected, the project moves back to its previous cost centre.

Stages

FromActionToWho
SuggestedAcceptDraftAnyone who can edit claims
SuggestedDismiss(removed)Anyone who can delete claims
DraftSubmit for reviewIn ReviewAnyone who can edit claims
In ReviewApprove, Request changes or RejectApproved, Changes Requested or RejectedSomeone on the Approval Stage
Changes RequestedResubmit for reviewIn ReviewThe claim's author
RejectedBack to draftDraftAnyone who can edit claims
ApprovedMark submittedSubmittedSomeone on the Completion Stage
SubmittedRecord outcomeClosedSomeone on the Completion Stage

Set up the stages in Set up R&D claims. Step by step: Approve and submit an R&D claim.

Claims across several years

  • There's one claim per project per fiscal year, so a project that runs for three years can have three claims.
  • Create R&D Claim always creates a claim for the current fiscal year. For earlier years, let the scan suggest them.

How spend and expected return are worked out

  • A claim's spend is the project's effort cost within the claim's dates, split into employees, contractors and AI. It uses the same effort and day rates as Capitalisation, so correcting effort or a salary updates the claim.
  • The expected return is that spend multiplied by the framework's credit-rate range, shown as a low–high range.
  • For a suggestion, the spend is labelled estimated spend.

How a day of effort becomes cost is on How costs are calculated.

Flowstate Documentation