Contents
The work happens in real time. The claim doesnโt.
A company completes a complex R&D effort. The problems were real, the uncertainty was real, and the people involved understood exactly what they were trying to achieve. Then nothing happens.
Months pass. Sometimes years. By the time the claim is prepared, the work has to be rebuilt from memoryโspread across emails, partial records, and people who may no longer be there. This is the timing gap, and it quietly undermines otherwise valid R&D claims.
The uncomfortable reality: the system is retrospective
The scheme allows up to two years to submit a claim. In practice, that often means reconstructing activity from nearly three years ago. In that time, teams change, leadership turns over, and processes evolve. What was once clear becomes a patchwork, and even when the work was well understood at the time, the ability to evidence it degrades.
What actually gets lost
The core story usually survives. Engineers remember what they were trying to achieve and why it was difficult. What disappears are the details that make a claim defensible: when work started and ended, who was involved and for how long, which materials were used and actually consumed, and which subcontractors contributed. Individually small, under scrutiny decisive.
Why this isnโt solved by โmore documentationโ
The issue isnโt a lack of documentsโitโs misalignment. Most companies record projects in a way that serves delivery, not how R&D is evaluated. And many donโt recognise all the places R&D occurs. If you canโt identify qualifying activity as it happens, you canโt capture it accurately later.
Where the model breaks down
Retrospective processes turn the claim into a reconstruction exercise. Information is chased, assumptions ๏ฌll gaps, and accuracy erodes.
One company developing an automated monitoring system for agriculture ๏ฌles its claim on the ๏ฌnal day every year. The work quali๏ฌes, but the process introduces avoidable risk and missed value.
Another company, after going through a compliance review, tracks project timelines, records who is involved, and allocates costs as they goโmonth by month, down to invoice level. At year end, the claim isnโt rebuilt. Itโs assembled.
The shift that changes outcomes
Both companies do R&D. The difference is timing. One relies on memory, the other captures enough signal in real time to make the claim accurate and defensible.
This doesnโt require complex systems. Often itโs as simple as recording when work started and ended, who was involved, and where costs sitโconsistently. Done well, it removes friction and increases con๏ฌdence under scrutiny.
The strategic advantage
Closing the timing gap isnโt just operational. It changes how decisions get made. You gain visibility while work is in
๏ฌightโmaking it easier to identify additional qualifying activity, adjust how projects are structured, and understand ๏ฌnancial impact earlier.
In one case, an R&D claim enabled a company to reinvest hundreds of thousands of pounds into new testing capability, funding the next phase of innovation. That outcome doesnโt come from reconstructionโit comes from capturing the right information at the right time.
The companies that get this right donโt rely on memory. They donโt reconstruct the past under pressure. They capture what matters while itโs happeningโand as a result, their claims are stronger, their decisions are better, and their R&D compounds instead of leaking value.
If your team is spending too much time supporting your R&D claim, we should talk.
Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 yearsโ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.
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