What goes into the technical documentation for R&D tax claims?

To support your R&D tax credit claim, you’ll need to prepare technical documentation that explains why your projects qualify. 

This information is often presented as a technical narrative or technical report and should clearly demonstrate how your work meets HMRC’s definition of qualifying research and development activity. 

A technical narrative should typically explain: 

• The advance in science or technology your company was seeking to achieve. 
• The scientific or technological uncertainties encountered during the project. 
• How those uncertainties were addressed by competent professionals. 
• The work undertaken, resources used and the outcomes achieved. 

HMRC does not require a specific format for technical documentation and there is also no standard template that businesses must follow. The key requirement is that the information is clear, accurate and provides enough detail for HMRC to understand why the activities qualify for relief. 

Including case studies for one or more representative R&D projects can also strengthen your supporting documentation. While not mandatory, these examples help demonstrate how the R&D tax relief rules have been applied in practice and provide additional context for the activities and costs included in the claim. 

Alongside details of the qualifying expenditure and example projects, your technical documentation may also include: 

• Background information about your company and the industry in which it operates. 
• Details of the competent professionals and other key individuals involved in the projects. 
• A description of the technical challenges encountered and the approach taken to resolve them. 
• An explanation of how the qualifying expenditure has been identified and calculated.