R&D or just BAU? A 10-minute self-check for your business

For many businesses, distinguishing between business-as-usual (BAU) improvements and eligible Research & Development (R&D) can be tricky.

Getting it right matters: qualifying R&D can unlock valuable tax relief, but only if your work meets HMRC criteria.

This guide walks you through a quick, practical self-check you can complete in under 10 minutes to help identify qualifying projects and start capturing evidence efficiently.

Understanding R&D eligibility

R&D work typically involves:

1. Baseline: What was already known or available before your project, and why it wasn’t enough.
2. Technological/Scientific Uncertainty: Challenges that cannot be solved using routine methods.
3. Sought Advance: Measurable improvements in capability, performance, reliability, or integration, not just cosmetic or commercial tweaks.
4. Systematic Work: A planned, iterative programme of tests, prototypes, or analysis rather than ad hoc tinkering.

The 5-question self-check

Answer Yes/No to each. Treat “not sure” as No for now.

1. Baseline: Can you demonstrate the starting point and its limitations?
2. Uncertainty: Did your project involve technical or scientific challenges beyond standard practice?
3. Advance: Were you aiming for measurable progress, not just minor improvements?
4. Systematic Work: Did you follow a structured programme of testing and iteration?
5. Traceability: Can you reasonably track time and costs to qualifying work?

Interpreting the results

• 4–5 Yes: Strong chance of qualifying R&D. Capture evidence now.
• 2–3 Yes: Grey area, tighten framing and start light evidence tracking.
• 0–1 Yes: Likely BAU, but keep notes; work may evolve into qualifying R&D.

Mini worksheet (one page)

Use a single page to organise:

• Project name & goal
• Baseline evidence & uncertainties
• Planned tests or iterations
• Success criteria & people involved (rough % time)
• Costs (staff, tools, prototypes)
• Date range & current status

Think of this as a signpost for your claim, not a detailed thesis.

Common grey areas

• Performance tuning vs R&D: Routine tweaks = BAU. Extending capabilities = potential R&D.
• Integration work: Standard integration = BAU. Novel interoperability = potential R&D.
• No failures? That’s fine. Uncertainty at the start and a systematic approach are what count.

Evidence that stands up

HMRC wants clarity on:

• The nature of the uncertainty
• How it was investigated
• The methods and measurements used

Proprietary details don’t need to be shared, just clear documentation of the process.

Quick 20-minute weekly routine

Capture evidence efficiently:

1. Meeting note (5 min): Who did what and why it mattered
2. Experiment log (10 min): Prototype/test → observation → next step
3. Time snapshot (5 min): Approximate % of week spent on qualifying work

A small routine now saves major effort and reduces risk at year-end.