Why You Need a Competent Professional for R&D Tax Claims

If you’ve been reading up on claiming R&D tax credits, you’ve likely come across the phrase “competent professional”. But who are they and how can they help solidify your R&D tax claims? Well today we’re covering what a competent professional is, why you need them for your claim, and how you can choose the right person to take on the role of a competent professional.

The UK R&D tax credit relief helps businesses to recover costs invested in scientific and technological research and development – but in order to make a successful claim, HMRC requires a clear technical justification. That means businesses must prove that research and development was necessary to overcome a technical challenge.

This is where a competent professional comes in.

If you’re preparing to claim R&D tax relief, one of the common mistakes you want to avoid is an incorrect eligibility assessment, which is why a competent professional is an integral part of your claim. 

What is a Competent Professional?

A competent professional is a qualified specialist in your industry who determines whether an advancement in science or technology is required to overcome a technical uncertainty.

These professionals are usually directly involved in the research and development, and frequently apply their experience to assess whether the work goes beyond what’s deemed to be routine practice. 

Why You Need a Competent Professional for an R&D Tax Claim

HMRC expects input from a competent professional to uphold an R&D claim – making them an integral part of your research and development team!

The following outlines how the work of a competent professional strengthens your claim:

Strengthens the Technical Narrative

Competent professionals have the ability to explain the scientific or technological uncertainties that the team aims to overcome, in a way that aligns with HMRC’s policy. 

This proves that there is a clear distinction between actual research and development, and general business improvements.

Provides Technical Justification

As their role is to explain the technical uncertainty, and why current solutions aren’t sufficient, a competent professional can provide technical justification to your claim. 

By outlining project challenges, addressing the approach taken, and the knowledge gained, competent professionals highlight the necessity of research and development. 

Ensures HMRC Compliance

Considering the input of a competent professional is a necessary step in claiming R&D tax credits, these specialists help ensure that your claim is compliant with the current claim standards. 

Without the input of a competent professional, your claim could be queried, delayed or even denied. 

Choosing the Right Competent Professional

When you’re in the process of choosing a competent professional, it’s important to remember that they aren’t just anyone working on your project. As far as HMRC is concerned, there should be sufficient evidence that the person you choose is a competent professional. 

The following are examples of what HMRC deem to be good evidence of a competent professional:

• High level of qualifications in the field, along with continuous professional development
• A significant amount of years experience working at a high level in the field
• A good scientific publication record for work in the field
• Industry awards
• Other public recognition for contributions to the field

With this, the competent professional should be able to clearly display their opinion without the use of industry jargon. 

Although HMRC holds the competent professional’s opinion in high regard, they may still request additional details if key information is missing. This makes it all the more important to compile accurate documentation that adds weight to the opinion of your competent professional.

Example of a Competent Professional

To show you what certifies someone as a competent professional, we’ve crafted an example with an imaginary professional that we’ll name Sarah.

Sarah is a senior software engineer in the fintech industry, and has over a decade of experience in financial software development. She leads a team working on an AI driven fraud detection software which is a significant advancement in the industry. Given her years of experience and professional development, she is considered a competent professional.

Make Your R&D Tax Claim With Alexander Clifford

R&D tax credits can give your business a valuable financial boost, but the claims process isn’t always straightforward. That’s where Alexander Clifford can help.

As R&D tax credit specialists, we take the hassle out of claiming, making sure you get the full benefit while maintaining full compliance with HMRC. With over 2,400 successful claims under our belt, we know how to handle the process efficiently, so you don’t have to.

Want to find out how much you could save? Get in touch with our specialist team today by filling in the contact form below, or book a call at a time that suits you.