Contractor Costs in SR&ED Claims
Arm’s-length vs non-arm’s-length contractors, invoice hygiene, and how to keep third-party work claim-eligible.
6 min read
Contractor spend can strengthen a claim when the work is experimental development performed on your behalf — or weaken it when invoices blur commercial delivery with SR&ED.
Keep statements of work that describe technological uncertainty, not just deliverables. Separate arm’s-length and non-arm’s-length relationships carefully; the expenditure treatment differs.
Reconcile invoices to the fiscal year and to the projects in your technical narrative. Orphan contractor costs without a project home are a common review finding.