Posted: 15 / 05 / 2025

Article by: Matt Waters, Ciarán Downs, Andy Nixon

Who is this mythical individual referred to as a “Competent Professional” and why are they the cornerstone of a successful R&D claim?

When preparing a Research and Development (R&D) tax claim, the importance of the ‘competent professional’ cannot be overstated. In practice there is often a team of competent professionals, since rarely is there any one individual who has all aspects of science or technology sector, domain and stack knowledge. Therefore businesses assemble teams of individuals who are trained in their respective fields to undertake potentially qualifying R&D activities. At least one of these individuals is identified as having the appropriate level of oversight and understanding of the activities undertaken. They are tasked to serve as the first checkpoint for establishing project eligibility and the final line of defence if HMRC raises any questions about the claim.

Referring to the R&D Tax Guidelines [CD1] the term ‘competent professional’ first appears in paragraph 13: “Scientific or technological uncertainty exists when knowledge of whether something is scientifically possible or technologically feasible, or how to achieve it in practice, is not readily available or deducible by a competent professional working in the field.” Simply put, they’re the gatekeepers of the fundamental question – “is this R&D for tax purposes?”.

In recent times HMRC has homed in on what they perceive as being a common issue in R&D tax claims, the misidentification of who qualifies as a competent professional. While it might seem like a broad term, HMRC has issued further guidance around their expectations. It’s not enough for someone to have a passing familiarity with the industry or a mere enthusiastic interest in the field. The competent professional must possess both knowledge and not unsubstantial experience directly relevant to the project in question. Simply put, it’s unlikely to be the claimant company’s Finance Director or Managing Director, and it might not be the Product Owner, Project Manager or Business Analyst. Conversely, a Scientist, Engineer or Software Developer doesn’t necessarily qualify as a competent professional despite their title or role…

In short, this is no minor detail. Recent compliance checks and first-tier tax tribunals reveal HMRC is increasingly challenging the credentials of the ‘competent professionals’ cited in claims. The stakes are high: get this wrong and you could easily find yourself responding to time-consuming enquiries and rejected claims.

The question is based around the HMRC criteria, not an insult

Asking someone, “What makes you competent… in this field?” might sound confrontational, but it’s truly not, it is a critical aspect of detailing the baseline capabilities of the key individual or individuals as part of the R&D claims process. It’s a vital to document the reliability of the information being presented and substantiate the assessment of activities. Ensuring advisers and claimants are speaking to the right person ensures that the claim is as accurate and defensible as possible. This isn’t just about ticking a box—it’s about building a solid basis for your R&D efforts.

So, who is a competent professional?

A competent professional is someone with appropriate qualifications and / or extensive experience in the relevant field. They’re typically individuals who are employed by the claimant company and are directly involved in the R&D project (although it is feasible that a company may involve competent professionals from the wider domain if appropriate, even if they may not be on the payroll of the claimant company.) Their expertise in turn aligns with the advancement being sought. Ideally, a competent professional (CP) should be engaged throughout the project to capture key technical details and assess the presence of scientific or technological uncertainty in real time. However, in certain contexts—such as during a tribunal or dispute resolution—a CP who was not directly involved in the project may still provide valuable input. In such cases, their role is typically to speak to the baseline level of knowledge and capability in the wider industry and help assess whether the claimed advancement genuinely goes beyond what is readily deducible by a competent professional in the field.

According to HMRC’s Guidance for Compliance documentation [CD2] (linked below), a competent professional should:

  • Be knowledgeable: They must fully understand the relevant scientific or technological principles.
  • Be up to date: They should be aware of the current state of knowledge and developments in their field.
  • Have experience and success: A proven track record of accumulated experience and accomplishments is essential.

In simple terms, if this individual is well positioned to explore every possible solution to a technical challenge and still can’t resolve it without carrying out R&D, it’s feasible to consider that others can’t either. That’s when the project crosses into R&D territory.

The competent professional’s key role in R&D claims

The competent professional plays a pivotal role in ensuring your R&D claim is robust. Their input helps clarify and substantiate the key elements of your submission their key involvement should include:

  • Distinguishing routine from R&D: They identify the aspects of your project that go beyond standard practices.
  • Identifying contributions: They pinpoint which activities directly drive advancements.
  • Drawing boundaries: They help outline the scope of your R&D project and allocate qualifying costs accordingly.
  • Ensuring accuracy: They make sure your claim is complete, precise, and compliant with HMRC guidelines.

One of the biggest concerns for CPs is whether they could be held personally liable if HMRC disagrees with the claim’s assessment of activities. The simple and reassuring answer is no— under the Corporation Tax Self-Assessment (CTSA) framework, it is the company’s directors who hold ultimate responsibility for the claim, not the CP personally.

However, this doesn’t mean the CP can take a backseat, quite the opposite. While the CP is not personally at risk, minimising the likelihood of disputes with HMRC is absolutely crucial. Their willingness to engage in this process strengthens the credibility of the claim and can help resolve any HMRC queries more efficiently. Companies can take proactive steps to build a robust, defensible claim by following these best practices:

  • Seek advice from a reputable R&D tax adviser: A knowledgeable adviser can help ensure that the claim aligns with HMRC’s latest guidance, reducing the risk of misinterpretation or errors.
  • Maintain detailed records: Keeping thorough documentation of project activities, challenges, and technical justifications strengthens the claim’s validity.
  • Be aware of all relevant guidance: HMRC regularly updates its approach to R&D tax relief, so staying informed about changes ensures compliance.
  • Document the rationale for R&D activities: Clearly explaining why a problem was technologically challenging and why existing solutions were insufficient can prevent misunderstandings during an enquiry.

But what about the additional information form?

While HMRC’s Additional Information Form (AIF)[CD3]  surprisingly doesn’t require you to provide a detailed biography for your competent professional, it’s a smart move to include a statement about their credentials in your project description(s) and, potentially a more in-depth biography within a supplementary report for HMRC. This proactive step adds credibility and helps pre-empt potential challenges.

Good evidence to support their competency might include:

  • High-level academic or professional qualifications and ongoing professional development.
  • Extensive experience in the field, potentially including senior or leadership roles[CD4] [MW5] . While leadership experience can demonstrate a high level of expertise, it is not a requirement. A highly skilled scientist or engineer who has chosen to focus on technical excellence rather than management can still be a competent professional.
  • A strong track record of relevant publications in respected journals.
  • Recognition through industry awards.
  • Other public acknowledgments of their expertise and contributions.

Navigating HMRC enquiries

If your claim triggers an HMRC enquiry, the caseworkers you interact with are very unlikely to be science or technology specialists. This makes it even more important to clearly present the qualifications and expertise of your competent professional upfront. By demonstrating that your claim has been compiled with input from credible experts, you strengthen your position and reduce the likelihood of drawn-out disputes.

In the world of R&D tax claims, the role of the competent professional is more than perfunctory—it is the cornerstone of a robust claim. There is no substitute for a credible, willing and engaged competent professional. From defining project eligibility to defending claims under scrutiny, their expertise and input is vital.