Ian Davie
Senior Consultant
HMRC has recently launched the Research and Development Expert Advisory Panel (RDEAP) to enhance the administration and clarity of R&D tax relief across the UK. This advisory group brings together leading specialists from AI, biotechnology, pharmaceuticals, and advanced manufacturing to ensure HMRC stays informed about emerging technologies and industry trends.
The RDEAP is a quarterly advisory panel chaired by HMRC. The panel is designed to provide insight into modern R&D practices and help refine official guidance. Its role is strictly advisory; the panel will not make policy decisions or get involved in individual claims. Instead, it aims to strengthen HMRC’s understanding of innovation, improve clarity for claimants, and support consistent administration of R&D tax reliefs.
A key function of the panel is horizon scanning, which allows HMRC to anticipate new technologies and evolving R&D practices across industries. This ensures the R&D tax system remains responsive to real-world developments.
The panel includes six external specialists with extensive experience in their respective fields:
Together with representatives from HMRC and other government departments, the R&D expert advisory panel will provide sector-specific insights, refine R&D tax guidance, and support strategic communication around innovation.
While the RDEAP’s role is strictly advisory, it will play an influential part in shaping HMRC’s understanding of modern R&D. The panel will not make policy decisions or become involved in individual claims. Instead, its purpose is to improve clarity for claimants, strengthen compliance, and ensure that HMRC’s R&D tax system remains responsive, consistent, and informed by real-world developments.
This collaborative initiative underscores HMRC’s commitment to fostering innovation while maintaining a fair and effective tax environment for businesses conducting R&D across the UK.
At TBAT Innovation, we recognise the potential benefits of the RDEAP. However, we also see significant challenges that must be addressed for the panel to have a truly positive impact.
The need for technical understanding:
Most HMRC caseworkers lack direct experience in technology or innovation. In fast-evolving sectors like AI, what qualifies as R&D today may be considered standard practice tomorrow. Without practical insight from those working in the industries, caseworkers risk misunderstanding or misclassifying genuine research and development (R&D) activities. The RDEAP could play a vital role in bridging this knowledge gap if its insights reach the front line of HMRC’s review processes.
Limited sector representation:
The panel’s focus on AI, biotech, pharmaceuticals, and manufacturing reflects the UK’s largest R&D sectors; however, innovation is far broader than that. Thousands of companies across software, energy, agriculture, construction, and creative industries also undertake substantial R&D. How will these areas be supported and understood if the panel’s expertise is concentrated in only a few “obvious” innovation sectors?
Risk of raising the bar too high:
Another concern is that the panel members, who are all deeply embedded in high-level and cutting-edge R&D, may unintentionally raise the bar for what qualifies as R&D in HMRC’s eyes. This could result in more claims being rejected, even when they meet the statutory definition of R&D. HMRC must maintain a balanced and realistic view of innovation across the full range of UK businesses, not only those operating at the forefront of scientific research.
Defining R&D in a diverse economy:
R&D takes many forms. From software engineers improving algorithms to manufacturers refining production techniques, the diversity of innovation in the UK is immense. The RDEAP will need to help HMRC interpret R&D flexibly and contextually, rather than adopting a one-size-fits-all or overly black-and-white approach.
A chance for real-world impact:
Ultimately, the success of RDEAP will depend on whether its insights filter down to the hundreds of HMRC caseworkers making day-to-day decisions. If the panel can bring practical understanding and real-world relevance to HMRC’s administration of R&D tax reliefs, it could be a positive step towards more consistency, transparency, and fairness for innovative businesses across the UK.
The creation of RDEAP shows HMRC’s willingness to work with experts and adapt to the rapidly changing R&D landscape. Although this is a positive step, the real measure of success will be how well the panel’s advice turns into practical support for both claimants and caseworkers.
A balanced and supportive R&D environment
At TBAT Innovation, we hope this initiative will result in a more informed, balanced, and supportive R&D tax environment that recognises the full scope of innovation taking place across all UK industries, not only those traditionally associated with R&D. True innovation extends far beyond laboratories and manufacturing facilities; it occurs in offices, workshops, digital environments, and even on the front lines of service delivery. Every business that strives to improve its processes, products, or technologies contributes to the UK’s broader innovation ecosystem.
Practical impact for HMRC and businesses
For RDEAP to make a meaningful impact, its insights must reach the operational level within HMRC. Caseworkers need practical, real-world examples and sector-relevant context to interpret the R&D guidelines consistently and fairly. Enhanced training, improved communication, and regular feedback between HMRC and industry experts could help bridge the existing knowledge gap and improve decision-making across the board.
The wider business community
It will also be important for the panel to maintain an open dialogue with the wider business community. Input from SMEs, consultants, and advisors who work daily with R&D tax relief claims can offer valuable perspectives that complement the high-level expertise already represented on the panel. Collaboration at all levels will ensure the R&D tax system continues to evolve in a way that encourages investment and supports the UK’s ambition to remain a global leader in innovation.
The success of RDEAP
Ultimately, the success of RDEAP will depend on its ability to balance compliance with encouragement. If it helps HMRC to understand the realities of R&D across diverse industries and promotes fairer treatment for businesses of all sizes, the initiative could mark a major step forward in building trust and clarity within the R&D tax relief framework. TBAT Innovation will continue to monitor its progress closely and support clients through any resulting changes to ensure they receive the recognition and relief they deserve for the innovative work they carry out every day.
If you want to find out whether you qualify for R&D tax relief or would like to discuss your innovative project with our R&D and Grant Funding experts, contact us today! In addition, take a look at the services that TBAT offer here.
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Assists organisations in accessing research and development grant funding across a range of UK and EU schemes and industry sectors.
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