What goes into the technical documentation?
The technical documentation in a research and development (R&D) tax credit claim should provide a compelling demonstration of the following:
-The technological advancement that your company has sought
-The challenges your company faced
-The resources used
-And finally, the outcomes achieved
Writing an R&D technical narrative
There is no standard format for presenting the information in the technical documentation to HMRC. However, it will usually begin with a background of your company to explain the context of your R&D work.
The R&D technical documentation describes how a company’s activities and projects have been assessed to determine if they qualify for the R&D tax credit incentives. There may be commercial aspects of a project which cannot be included; these should be isolated. In this way, the R&D tax credit documentation should be able to detail how your associated costs have been treated.
R&D technical narrative example: how to include sample projects
You should also include case studies that explain some example R&D projects in detail. These demonstrate to HMRC that the guidelines for R&D tax credits are being properly applied and have been understood.
The case studies need to include R&D examples with sufficient detail for an HMRC inspector to understand how the projects you have undertaken have been assessed, and how they align with the R&D guidelines. As far as possible, you should explain your projects in layman’s terms. However, be careful to explain the technological complexities you faced in enough detail to support your R&D tax credit claim.
What else to include in your R&D technical documentation
As well as explaining the associated costs and some example projects, your R&D technical documentation might include:
-Contextual information about your company
-Details of the key individuals who have worked on your projects
-The technical difficulties you encountered in your projects
To maximise your R&D claim, please contact us.