What is an Advance In Science or Technology?

This article explains:

• What HMRC Means by “science” and “technology”

• What HMRC means by an “advance”

• Why defining the baseline is critical

• The role of the competent professional

• Why “new to the company” is not enough

• Common mistakes that weaken RDEC claims

What HMRC Means by “Science” and “Technology”

For UK R&D tax relief purposes, science and technology have specific meanings, and they are not as broad as many people assume. Science refers to the systematic study of the physical or biological world, where knowledge is advanced through observation, experimentation and testing. Technology refers to the practical application of scientific or engineering principles to create, improve or adapt materials, devices, products, processes or systems. Importantly, advances must relate to scientific or technological capability, not to aesthetics, business processes, user experience, commercial strategy or routine professional practice. Understanding this distinction is critical, as HMRC will only accept advances that sit clearly within recognised fields of science or technology.

What HMRC Means by an “Advance”

An advance in science or technology occurs when a project:

• Extends overall knowledge or capability in a field of science or technology

• Moves beyond what was publicly available or readily deducible at the outset

• Seeks to overcome recognised limitations in existing technology

An advance does not need to be revolutionary or industry-changing. Incremental advances can qualify – but only if they genuinely push beyond the existing baseline.

The Importance of the Baseline

The baseline is the starting point against which an advance is measured.

It represents:

• What was already known

• What solutions already existed

• What a competent professional could reasonably achieve using existing knowledge

Without clearly defining the baseline, it is impossible to demonstrate an advance.

Common baseline sources include:

• Existing products, processes or architectures

• Industry standards and established techniques

• Publicly available documentation, literature or prior research

A strong RDEC claim makes it clear what could already be done, before explaining how the project aimed to go further.

The Role of the Competent Technical Professional

HMRC assesses advances from the perspective of a competent professional working in the relevant field, not from the viewpoint of the company making the claim.

A competent professional:

• Has relevant technical training and experience

• Is aware of the current state of knowledge in the field

• Can apply standard practices and known techniques

If a competent professional could readily achieve the outcome using existing knowledge, then no advance exists for RDEC purposes.

This is why claims based on internal skill gaps or learning curves are often challenged.

Why “New to the Company” Is Not an Advance

One of the most common errors in RDEC claims is equating internal novelty with technological advancement.

Examples that do not qualify as advances on their own:

• First-time use or deployment of a known technology, no matter how complex

• Implementing off-the-shelf tools in a new business

• Re-creating existing solutions already available in the market (unless the existing IP is a trade secret)

The key question is not:

“Was this new to us?”

But:

“Did this extend knowledge or capability beyond what was already known in the field?”

How to Identify a Genuine Advance

A useful way to articulate an advance is to ask:

1. What limitation existed in existing technology?
   What could not previously be achieved?

2. What capability did the project seek to create or improve?
   Speed, scale, precision, performance, reliability, sustainability, etc.

3. Why wasn’t this already achievable using known methods?
   This links directly to technological uncertainty.

4. Who would struggle with this?
   If a competent professional would find the sought for advance non-trivial to achieve, you’re on the right track.

Practical Examples of Advances

Software

• ❌ “Developing a new platform”

• ✅ “Extending existing data-processing techniques to enable real-time analytics at a scale not previously achievable using known architectures.”

Manufacturing

• ❌ “Improving production methods”

• ✅ “Developing a manufacturing process capable of maintaining structural integrity when using a new composite material with previously unresolved performance limitations.”

Engineering / Construction

• ❌ “Designing a more efficient building”

• ✅ “Advancing structural design techniques to accommodate low-carbon materials that could not previously meet load and durability requirements.”

Key Things People Get Wrong

• Treating implementation as advancement

• Failing to define the baseline clearly

• Framing advances around commercial benefits rather than technical capability

• Ignoring the competent professional test

• Describing outcomes without explaining why they were not already achievable

Why This Matters for RDEC Claims

HMRC expects clarity, not hype.

A strong RDEC claim:

• Clearly defines the baseline

• Explains the advance in technical terms

• Anchors everything to the competent professional

• Aligns advances with identified technological uncertainties

Getting this right significantly strengthens claim defensibility and reduces enquiry risk.

Need more information?

Visit Claiming RDEC Index Page for detailed guidance on many aspects of claiming Research & Development Expenditure Credits.