What is the Law?

For the purposes of deciding what qualifies as R&D for tax purposes, the “BEIS (2004) guidelines” are relied on by the relevant laws.

The BEIS guidelines are not complex, or difficult to understand, and can be read in full here: https://www.gov.uk/government/publications/guidelines-on-the-meaning-of-research-and-development-for-tax-purposes/meaning-of-research-and-development-for-tax-purposes-guidelines

In summary, the guidelines say [paragraph number]:

“R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology” [3] “through the resolution of scientific or technological uncertainty” [4]

“A project which seeks to … create a process, material, device, product or service which incorporates or represents an increase in overall knowledge or capability in a field of science or technology; or make an appreciable improvement to an existing process, material, device, product or service through scientific or technological changes … will therefore be R&D” [9]

“Uncertainties that can readily be resolved by a competent professional working in the field are not scientific or technological uncertainties” [14]

There is no mention that the claimant must provide independent expert proof. No mention of required documentation, or that the outcome must not be unexpected.

Time and again our members patiently explain how the definitions are met, only to receive another letter with spurious, ill-informed rebuttals, and requests for the same information all over again