Is my project an advance in science or technology?
For a successful R&D claim to be made to HMRC there is an absolute requirement for the company to be able to demonstrate that they have achieved an advance in science or technology within their given market sector.
The company has to be able to provide evidence by way of a technical justification showing:
The base line of technology within the market at the point that the project began (generally the technical person at the company will know through experience & researching the market where that base line sits).
The technical uncertainties that the company faced (if the company had unsuccessful attempts to resolve these uncertainties these need to be included in the report as this will help HMRC conclude that the resolution was not readily deducible by a competent professional, another of the key qualifying criteria for a successful claim).
Any ongoing uncertainties (it is common for qualifying projects to span accounting periods, so a careful quantification of the project to the period end is necessary. As an R&D claim is often completed several months after the accounting year end it can be helpful to include details if the project has concluded, also giving continuity for the later year claim).
Being 'commercially innovative' isn't enough for a successful R&D claim in the eyes of HMRC - innovative products or services that do not provide an advance in science or technology are not eligible for this form of relief.
Here at Elect we have successfully completed R&D claims for companies across a wide range of industry sectors, such as:
- Printing and Packaging
- Software development
- Waste recycling
- Telecommunications and IT
- Pharmaceuticals and bioscience
In our experience company directors are not always aware that they are eligible to make a claim because they are continually pushing the boundaries so consider their activities normal.
Why not give us a call for a free no obligation consultation, and find out if your project qualifies?