Can I claim R&D tax credits if the project isn’t completed?

If your claim meets the eligibility criteria of R&D activity, you can still make an R&D tax relief claim even if the project is not completed yet. R&D tax credit relief is based on the qualifying activities and expenditure incurred during the accounting period, rather than on whether the final outcome has already been achieved.

When it comes to incomplete projects, it’s necessary to provide HMRC with a clear project narrative within the required documentation. This explanation should outline the progress made during the accounting period, the technical work carried out, and the uncertainties the project aimed to resolve.

Providing this level of detail helps HMRC understand the nature of the R&D activities being undertaken, and if the project is still ongoing. As there may not yet be a finished product, process, or software to demonstrate the outcome of the scientific or technological uncertainties, the technical narrative and supporting information become particularly important in showing how the work meets the definition of qualifying R&D activity.

Clear, detailed, and accurate documentation helps demonstrate the technical objectives of the project and the work performed during the accounting period that is being claimed, which supports the overall credibility of the claim.