An increasingly important factor in R&D claims is the need for a “competent professional”. HMRC have reduced the value of some claims to zero when a competent professional has not been identified.
There is no legal definition of a competent professional, despite its growing importance in R&D claims.
However, HMRC define a competent professional as having all the following attributes:
- Knowledge about the relevant scientific or technological principles involved.
- Awareness of the current state of knowledge in the field.
- Accumulated experience and have a successful track record.
Competent professionals must be involved in the project to which the claim relates, but they may be external to the company claiming the R&D tax relief or in-house.
Evidence can be submitted to establish the competency of the individual further, including:
- Qualifications in the relevant field.
- Practical experience gained over years of working in that field.
- Publications in the field of advancement.
- Recognition such as industry accolades or awards.
In many companies, the competent professional prepares the technical report to support an R&D claim. At Edwards Chartered Accountants, we collaborate with our clients and we review the technical report and suggest improvements before it is submitted.
If you need help with any aspects of your R&D claim, including details of your competent professional, technical reports, advanced notification, or additional information forms, contact Edwards Chartered Accountants.
