What evidence does HMRC need?
We know exactly what a successful claim looks like! So you don’t need to worry about retaining all this information. These are the questions HMRC require answers to and that we will ask you, in preparation of your R and D Tax Credit claim:
- Exactly what is the technological or scientific advance?
This will, hopefully, be clearly within your project’s aims.
- What ‘uncertainties’ were you exploring?
A simple, non-technical explanation of the problem(s) you wanted to overcome.
- Why didn’t you get the information from another professional?
HMRC want to know that “competent professionals” tried to locate existing knowledge and were involved with defining the research as having ‘uncertainty’, rather than just being day-to-day research. This means that the project’s leader(s) will need to explain their view in writing and you will need to provide the proof that they are “competent professionals” (experience and qualifications).
- How and when did these ‘uncertainties’ get resolved?
This is a short report of what you did, an analysis and an evaluation of the project’s conclusion. Was the project a success or a failure? This doesn’t necessarily mean having an actual new item to sell; gaining knowledge, improving efficiency and reducing costs are all just as legitimate. Patents and copyright ownership are helpful with this section.