HMRC has launched an online checker to help businesses judge whether their projects meet the definition of research and development for tax reliefs before they file a claim. The tool aims to reduce errors, but it is not mandatory and does not guarantee acceptance.
It works much like CEST for IR35: you answer a series of questions and receive a result indicating whether the project contains qualifying R&D. The process takes approximately 10 minutes.
The checker is aimed at first-time claimants and companies with limited experience. However, HMRC expects a ‘competent professional’ to supply or validate several answers. This means someone qualified or experienced in the relevant science or technology, usually involved in the project and aware of baseline knowledge at the start.
The questionnaire has three sections. Section one confirms the project details and whether you tried to solve a scientific or technological problem. Sections two and three require input from the competent professional. They test whether the work sought an advance in knowledge or capability, whether scientific or technological uncertainties existed, what was done to overcome them, and whether the work resolved the issue.
If any response shows the project is ineligible, the tool pauses and explains why. You can amend answers and continue. At the end you’ll see a statement that the project includes qualifying R&D, or reasons it does not.
You can preview, save, and print the results. The tool does not assess costs or scheme choice, so check HMRC guidance on eligible expenditure separately.
Talk to us about your finances.
