The R&D Tax Credits Technical Report, which is submitted to HMRC is compiled to evidence the financial R&D Tax Credit claim. It provides HMRC with a summary of the financial claim, in line with what is submitted with the CT600 and included in the Tax Computation, and details the eligible R&D projects that were ongoing throughout the claim period.
When working with TBAT, a robust, well-evidenced report is compiled through detailed discussions between our expert consultants and technical staff from the claimant company. Although TBAT staff are not always subject matter experts, they are all engineers or scientists who will take the time to understand your R&D in the context of your industry. The technical report length, level of detail required and amount of time required of your technical staff generally corresponds to the size of the financial claim being made.
TBAT’s experienced consultants use a tried and tested report format to present your R&D to HMRC in a way that matches their expectations and qualifies your activities to the relevant legislation. Many of our clients are so delighted with their technical reports that they use them for case study examples and for internal and external promotion of their innovation culture.
Some companies who have in the past submitted R&D Tax claims through their accountants have received the financial benefit without providing any supporting evidence. Many were advised that the report was not necessary or a waste of valuable time and effort. However, HMRC are investigating an increasing number of R&D Tax Credit claims for compliance. There is a significant risk that if you do not submit a report or other evidence to support your financial claim, some or all of the claim value will be rejected. The Technical Report is critical to qualify the claimed costs against projects that meet the requirements of the guidelines HMRC use to qualify R&D Meaning of Research and Development for Tax Purposes.
Along with a financial claim summary and an introduction to your business, the report details each of your projects in the same format.
Start and End Date of the project
This allows HMRC to understand define the timeline within which the technical uncertainty was overcome and when R&D started and ended.
Summary of Project
This section provides HMRC with an introduction and background to the project. It describes the innovative activities and key deliverables throughout the claim period that directly contributed to the advance in science or technology being sought.
Progression Beyond the Current State of Knowledge
This section describes how the project has provided an advance in overall knowledge or capability in a field of science or technology. For example, it will describe how the project established an appreciable improvement to an existing process, material, device, product or service through scientific or technological investigation.
Scientific or technological uncertainty
Explains to HMRC where the scientific, technological, feasibility and system uncertainty was within the project. Defining what was not already within the public domain, and what could not be deduced by a competent professional.
How the Scientific or technological uncertainty was overcome
Arguably the most important section of the report. This is where evidence is provided which explains how the development team overcame the uncertainties within the project, as described above.
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