Our first Innovation Insight of the year looked at certain triggers that may indicate a company is carrying out qualifying R&D activity. We now turn our attention to when a company has identified qualifying R&D activity and have highlighted some top tips when preparing a claim.
The narrative needs to demonstrate what the technological/scientific advances were and how the related challenges and uncertainties were overcome. It therefore needs to be written from a technical perspective. However, a non-technical person needs to be able to understand it so context is required and technical jargon should be avoided.
Do also include unsuccessful projects that failed from a technological or scientific perspective as this helps to demonstrate to HMRC that a project was not straight forward.
Also remember that qualifying costs that are capitalised (included on the balance sheet) also have the potential to be included within a claim.
When it comes to the proportion of costs you can include this will also need careful consideration in how they link in with the qualifying activities undertaken. For example, it is advisable to have a timesheet system in place to support the proportion of employee costs being included in the claim.
Hopefully you will have found these tips helpful when thinking about your R&D claims but the above is no substitute to getting the input of a specialist R&D advisor with years of practical experience in making claims. Therefore if you need support with your claim, have specific questions or would just like to chat through your thinking please do contact Andrew Hawley or Stuart Weekes,