Quick answer: Validation is the review of an R&D claim before submission, checking that activities meet the BIS Guidelines test, that the competent professional is properly identified, that expenditure is correctly categorised, and that Additional Information Form disclosure requirements are met. It is usually carried out by a specialist adviser independently of the client's team.
What is validation in an R&D claim?
Validation, in an R&D tax relief context, is the systematic review of a claim before submission to check that the activities meet the BIS Guidelines test, that the competent professional has been properly identified, that qualifying expenditure has been correctly categorised and apportioned, and that the disclosure requirements including the Additional Information Form are satisfied. Validation is usually conducted by a specialist adviser independently of the client's finance or technical team and is a standard component of compliance-first claim preparation.
How does HMRC expect validation to be carried out?
HMRC's Guidelines for Compliance GfC3, Help to see if your work qualifies as R&D for tax purposes, sets out the checks HMRC expects a claimant and its agent to perform. The Agent Standard, published by HMRC, requires agents to take reasonable care and to act with integrity. Validation is also implicit in the Additional Information Form's detailed disclosure requirements at CIRD81810.
What does validation look like in practice?
A specialist adviser receives draft technical narratives and a cost schedule from a biotechnology SME. Before filing, the adviser runs a validation step: confirming the competent professional's qualifications, stress-testing the scientific or technological uncertainty description against the BIS Guidelines, checking expenditure category mapping, and reviewing evidence supporting the fraction of time for each member of staff. Two minor issues are corrected before submission.
Related terms
Frequently asked questions
Validation checks that a claim's activities meet the BIS Guidelines test, that the competent professional has been properly identified, that qualifying expenditure has been correctly categorised and apportioned, and that disclosure requirements including the Additional Information Form are satisfied.
Validation is usually conducted by a specialist adviser independently of the client's finance or technical team, as a standard component of compliance-first claim preparation. The eligibility checker can give an initial indication of whether a project might qualify before validation begins.
HMRC's Guidelines for Compliance GfC3 sets out the checks HMRC expects a claimant and its agent to perform, and the Agent Standard requires agents to take reasonable care and act with integrity.
A specialist adviser reviewing a biotechnology SME's claim confirms the competent professional's qualifications, stress-tests the scientific or technological uncertainty description against the BIS Guidelines, checks expenditure category mapping, and reviews evidence supporting staff time apportionment before filing.