HMRC Launches New R&D Eligibility Checker

HMRC has released an online Research and Development (R&D) eligibility checker to help businesses assess whether their activities might qualify for R&D tax relief.

The tool provides an initial indication of eligibility and is designed to save time by helping users decide whether to proceed with a full claim.

How the eligibility checker works

The checker guides users through a series of questions to assess whether their project meets the core criteria for R&D tax relief. While the process is designed to be user-friendly and structured around simple ‘yes’ or ‘no’ questions, it still requires a reasonably detailed understanding of the project and its objectives.

This tool is not intended to provide a definitive decision but instead offers a strong indication of whether a project is likely to qualify. One useful feature is that if, at any point, the responses suggest the project is ineligible, the checker will explain why.

It is important to note that a positive result from the checker does not guarantee eligibility. Other criteria, such as qualifying expenditure and selecting the appropriate scheme, will still need to be met in any formal claim.

The role of a competent professional

HMRC emphasises that a competent professional is needed to provide some of the more technical information required in the eligibility checker. This is a key aspect of the process and should not be overlooked.

A competent professional is defined by HMRC as someone who is “suitably qualified or experienced in the field. Usually this is someone directly involved in the project with professional expertise relevant to the advance being sought.”

Crucially, simply having worked in a field or showing an intelligent interest is not sufficient. The individual must have relevant and demonstrable knowledge and experience specific to the qualifying project.

According to HMRC, a competent professional should meet all of the following criteria:

• Be knowledgeable about the relevant scientific or technological principles involved;
• Be familiar with the current state of knowledge in the wider field; and
• Have accumulated experience and a successful track record in the area.

The competent professional may be internal to the business or an external expert. Further guidance, including examples, is available from HMRC for those unsure whether an individual meets the required standard.

Information required by the eligibility checker

The checker is divided into three sections – answers can be reviewed and amended after each section.

Section One

This section gathers basic project details, such as whether any work has started, whether the project has a name or reference, and whether it aims to solve a scientific or technological problem.

A competent professional is then required to answer the questions in Section Two and Section Three.

Section Two

The competent professional must confirm that their experience is directly relevant to the project’s field, explain the baseline level of knowledge or capability at the time the project began, and identify how the work seeks to advance overall knowledge or capability in the field.

Section Three

The competent professional must confirm the project’s intended advance in knowledge or capability, identify any scientific or technological uncertainties, describe the work undertaken to resolve them, state whether that work is complete, and indicate when each uncertainty was resolved or abandoned.

Next steps and record-keeping

HMRC recommends saving or printing the checker results and keeping a record of the information used to answer each question. This will support any future claim and help in the event of a compliance check.

Where answers are based on accurate project facts, HMRC is unlikely to challenge the claim’s eligibility. If the checker indicates the project qualifies, the next step is to proceed with a formal claim.

How M+A Partners can help

Certain steps must be taken prior to claiming your R&D tax relief to ensure the claim is valid. M+A Partners is experienced in advising on eligibility for R&D tax relief, providing expert services to guide you through the process.

If you think you have undertaken R&D projects that exhibit the qualifying conditions, why not have an initial discussion with one of our specialists to see how you might benefit from this regime.

Take a look at our factsheets below for further information on claiming R&D tax relief.