Your narrative should include a detailed description of the research and development work that took place, a detailed description of the challenges, uncertainties and technical risks involved, and detail on the process of iterations and the development steps. If you had a breakthrough as a result of the research and development work, it should be explained in detail. A breakthrough in short is a solution to a non-obvious technical challenge that results in a successful outcome for your R&D project. As noted below, success is not a requirement for receiving research and development tax credits.
If your research and development project failed, you should describe the failure transparently in the context of the project’s technological uncertainty and risk. R&D tax credits are one of the rare cases where failure is often rewarded - with a tax credit
Technical narratives are an in-depth summary of the technical aspects of your project. An experienced R&D tax credits consultant can help you avoid common technical narrative rejection pitfalls so you can make an error-free R&D tax credit claim.