HMRC has launched an online checker to help businesses judge whether their projects meet the definition of research and development (R&D) 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 similarly to CEST for IR35: users answer a series of questions and receive a result indicating whether their 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 — someone qualified or experienced in the relevant science or technology, usually involved in the project and aware of the baseline knowledge at the start.
The questionnaire has three sections:
- Section one confirms the project details and asks 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 that the project is ineligible, the tool pauses and explains why. You can amend your answers and continue. At the end, you’ll see a statement confirming that the project includes qualifying R&D, or outlining the reasons it does not.
You can preview, save, and print the results. The tool does not assess costs or scheme choice, so businesses should check HMRC guidance on eligible expenditure separately.
Talk to us about tax reliefs.
