Taxnova

Product Introduction

1. Definition: Taxnova is an automated R&D tax credit identification and claim preparation platform designed specifically for the modern technology sector. It functions as a specialized SaaS fintech solution that bridges the gap between engineering activity and financial compliance by programmatically analyzing technical workflows to generate audit-ready tax documentation.

2. Core Value Proposition: Taxnova exists to eliminate the administrative burden of R&D tax relief claims by replacing subjective manual interviews with data-driven evidence. By integrating directly with engineering and finance stacks, the platform increases the average R&D tax credit by 10-15% while reducing the claim preparation time from months to days. It provides CTOs and CFOs with a scalable way to capture all eligible R&D activities across multiple geographies with 100% traceability, ensuring that no qualifying technical innovation is overlooked.

Main Features

1. Automated Technical Data Aggregation: Taxnova establishes read-only connections with the primary tools used by software development teams, including Version Control Systems (GitHub, GitLab, Bitbucket, Azure DevOps), Project Management tools (Jira, Linear), and documentation hubs (Confluence, Notion). The system identifies and sizes eligible projects by analyzing metadata from commits, tickets, and technical specs without requiring access to the actual source code.

2. AI-Driven Narrative and Evidence Generation: Using the data extracted from engineering systems, Taxnova automatically generates comprehensive technical narratives that describe the R&D projects in a format compliant with tax authorities like HMRC. These narratives are not generic summaries; they are grounded in rich data and directly linked to specific evidence, such as staff R&D time allocations and technical problem-solving instances recorded in the dev stack.

3. Financial Ledger Integration and Cost Scanning: The platform connects to accounting and payroll software (Xero, QuickBooks, NetSuite) to surface potentially eligible costs, including cloud infrastructure and software subscriptions. It matches technical project activity with financial spend to ensure that R&D tax accruals are accurate and that the final claim report reflects the true scale of the organization’s investment in innovation.

Problems Solved

1. Engineer Survey Fatigue and Productivity Loss: Traditional R&D claim methods rely on extensive interviews and surveys that distract senior engineers and leaders for weeks. Taxnova solves this by automating the evidence collection process, requiring zero engineer disruption for interviews and only minimal, targeted feedback when necessary.

2. Undercaptured Credits and Missed Geographies: Manual processes often overlook smaller projects or R&D activities occurring in international offices. Taxnova’s holistic scanning of the entire engineering organization identifies all qualifying work across all teams and countries, leading to a documented 10-15% increase in total credit value.

3. Audit Risk and Poor Traceability: Tax authorities are increasingly skeptical of high-level summaries. Taxnova addresses "Enquiry Risk" by providing a 100% traceable audit trail where every claim narrative is backed by specific commit logs and tickets, moving away from "memory-based" evidence to "fact-based" evidence.

4. Target Audience:

• Finance Leaders (CFOs, Finance Directors): Who need accurate R&D tax accruals, faster claim cycles (days vs. months), and minimized audit risk.
• Engineering Leaders (CTOs, VPs of Engineering): Who want to protect their team’s focus and ensure their technical innovations are properly recognized without the burden of manual timesheets.
• Tax Advisors: Who use Taxnova as a tool to handle the heavy lifting of data collection and narrative drafting, allowing them to focus on high-level strategy and submission.

5. Use Cases:

• Post-Funding Growth: Tech companies backed by investors like a16z who need to maximize their runway through efficient tax credit recovery.
• Audit Preparation: Companies facing HMRC enquiries or those wanting to ensure "audit-ready" documentation from day one.
• International Expansion: Multi-national tech firms needing to track R&D activity across different jurisdictions and payroll systems.

Unique Advantages

1. Differentiation through Data-First Methodology: Unlike traditional consultants who rely on retroactive interviews (often months after the work was done), Taxnova provides visibility into the accumulated R&D tax amount throughout the year. This real-time visibility prevents "painful restatements" when actuals differ from accruals.

2. Key Innovation (Zero Source Code Access): A significant technological advantage is Taxnova's ability to identify qualifying work through metadata and descriptions rather than source code. This maintains a high security posture for tech-sensitive companies while still providing the depth of information required for robust HMRC-compliant narratives.

3. Hybrid Assurance Model: Taxnova combines the speed of automation with the security of human oversight. While the platform handles the heavy lifting of data gathering and project sizing, users can still involve their preferred R&D tax advisor to review and finalize the report, providing a "best of both worlds" approach to compliance.

Frequently Asked Questions (FAQ)

1. Does using Taxnova increase the risk of an HMRC enquiry? No. In fact, Taxnova is specifically designed to reduce enquiry risk. By replacing subjective, memory-based summaries with narratives grounded in objective engineering data (tickets and commits), the quality and traceability of the evidence are significantly improved, making the claim more defensible during an audit.

2. How much time do engineers need to spend on the R&D claim process? Taxnova reduces engineer involvement to the absolute minimum. Because the platform automatically identifies qualifying work and generates narratives from existing data, engineers only need to answer brief, contextual questions in rare cases. The initial setup for the entire organization takes approximately 30 to 60 minutes.

3. Is my company's source code safe with Taxnova? Yes. Taxnova does not require or request access to your live source code. The platform operates via read-only API keys or data exports, focusing on metadata, project descriptions, and time-tracking data. All data is handled under NDA, hosted on EU-based Google Cloud servers, and is GDPR compliant.

4. Can Taxnova be used alongside our existing tax advisor? Yes. Taxnova is not a replacement for professional tax advice but a powerful tool that complements it. It automates the data-gathering and narrative-writing stages, which are typically the most time-consuming parts of the process for both the company and the advisor, allowing for a more accurate and efficient submission.

5. Which countries and jurisdictions does Taxnova support? Currently, Taxnova is fully live and compliant for UK-based companies (HMRC). Support for the United States is launching soon, with further international expansion planned for 2026 to cover more global R&D tax jurisdictions.