HMRC has started to identify a common error in claims when it comes to identifying a competent professional. It is not enough for a person to have worked in a field or to have an intelligent interest alone, they must have enough knowledge and experience relevant to the qualifying project. In recent compliance checks it has become clear that HMRC has begun challenging the competency of the competent professional on a more regular basis.
How does a business, and their R&D advisor, ensure that they identify and include the right competent professional in any claim?
A competent professional in the field can judge if a scientific or technological advance is needed to solve a particular problem. This person can:
A competent professional who is suitably qualified in the field of the advance, will likely be an internal member of the team but they may be external. Usually this is someone directly involved in the project who has professional expertise relevant to the project’s advance.
HMRC believe that any one of the following examples would show good evidence and indicate a competent professional:
In respect of their field of expertise, HMRC expect a competent professional to have all the following attributes:
The qualification and opinion of a competent professional is always the foundation of a compliant and robust R&D tax relief claim and highlighting their knowledge in the field relevant to the R&D strengthens the claim.
