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Please contact us to discuss how working with Myriad Associates can maximise and secure R&D funding opportunities for your business.
The government offers Research and Development (R&D) Tax Credits to help fund innovative business projects in the UK. But claiming can be fairly complex, and for small and medium-sized enterprises it’s made up of two parts: accounting for costs, and creating a high quality technical narrative.
The first part is about showing HMRC exactly what you have spent on R&D projects, and - critically - how it meets HMRC’s exact criteria. This is the ‘accountancy’ part, concerned only with figures and data.
The second part of the challenge, and the part which is often more difficult, is in demonstrating to HMRC that the work your company has completed can be classed definitively as R&D. The inspectors at HMRC deal with a huge number of highly technical applications all the time, so they need to be able to understand the technology used in your industry quickly and easily. The language used in your narrative therefore needs to have just the right level of detail without waffle, and should be written in a way that’s easy to understand.
If both of these parts of the challenge seem daunting, don’t worry - that’s what the experts at Myriad Associates are here for. Our team is made up of accountants and specialist R&D advisors who have been working with businesses on all aspects of R&D tax relief since 2001. We will help you put together both the accountancy side of your application and your technical report in such a way that not only meets HMRC’s strict criteria, but that gives you the best chance of success in optimising your claim.
The technical report essentially should describe why the project was undertaken, the scientific or technological problem it looked to solve, and how it meets HMRC’s legislation. It also helps HMRC check whether the claim has been made using the correct scheme i.e RDEC or SME (What’s the difference?)
Once eligible projects and qualifying costs have been identified writing can begin.
To summarise, a competent technical report will contain:
When you discuss your R&D tax relief claim with us, we’ll go through the specific project work your company has undertaken, alongside the financial aspects. We will get to know your company, your sector and your R&D work in as much depth as possible, to identify only the most highly relevant parts required for your claim.
Once this initial meeting is complete, we will draw up a draft technical report, asking for clarification and feedback where necessary along the way. We’ll work hard to get the context and detailing right, and make sure only a minimal amount of your time is required. Nothing is ever submitted without confirmation that you’re totally satisfied with it, and we put every effort into getting your technical report absolutely right first time.
Once you have approved the report, it will form part of your R&D tax relief claim. We will offer a wealth of expertise along the way, but we must stress this is your report, and you will have the final say on everything.
The technical report shows HMRC that the R&D work your company has undergone meets the criteria set out in the BIS Guidelines. It’s a chance for you to fully explain the work, as well as to justify why you think your claim should be approved. Essentially an inaccurate or poor quality technical report can lead to your company’s R&D tax relief application failing - and therefore you could miss out on thousands of pounds.
Additionally, if the technical report contains any inconsistencies, it may be a red flag to HMRC who will then likely pose further questions. They may even wish to carry out a more forensic look at your company’s tax affairs in general - expensive, stressful and best avoided.
As with anything tax-related, HMRC is within its rights to re-assess returns for up to seven years following the year in which a claim is made. Indeed, it’s not uncommon for HMRC to look back at older claims, particularly if it believes there may be inconsistencies either with the claim itself or with another aspect of the company’s tax landscape. It may even wish to simply carry out random spot checks with very little notice. Imagine the stress of having to pull together a significant amount of R&D data from a project you carried out back in 2013 for example! Staff may well have left the organisation since then, and those remaining may not have the necessary knowledge or time required to tackle the issue. This is again why it’s so important to work with R&D tax professionals such as ourselves so you know you have a highly accurate, up-to-date and thorough technical report on file if you need it.
Myriad Associates is made up of a team of highly experienced accountants, advisors and R&D specialists, all on hand to help your company receive the R&D tax relief it deserves. Our services are extremely high quality and excellent value, and our 100% success rate speaks volumes.
Please feel free to call our team on 01858 776 045 or use our contact form to discuss any aspect of your R&D tax relief claim. Don’t forget, more information can be found on the R&D Tax Credits page of our website too.