Checklist 1: Are you claiming all the R&D tax credits you are entitled to claim?
We have compiled this checklist because we have found that a significant number of companies are under-claiming their R&D tax relief and credits often due to misunderstandings or misinformation about what they can claim for.
In HMRC's definition Research and Development takes place when a company seeks to 'make an advance' - this includes seeking to develop a new or significantly improved process, material, device, product or service by applying science and/or developing technology. The definition of science for R&D claims relates to the physical world of things (not arts, humanities and social sciences). And technology is the hardware, software, machinery and equipment that companies use to run their business and create products and services.
By definition what needs to be done to 'make the advance' must not be obvious, or easily worked out, or readily available if researched, as if it is there is no R&D needed. So your R&D projects and activities should involve some experimentation or unknown factors that will need to be resolved to achieve the intended advance. There are referred to in R&D guidance notes as 'scientific and technological uncertainties'.