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If you are anything like most accountants at the moment, barely a client conversation goes by at the moment without AI coming up and R&D tax advisory is no exception.
There has been a lot of commentary about AI’s potential to support accountants with a wide range of tasks and often the conversation focuses on whether AI can replace the professional judgement of an R&D tax consultant.
That is the wrong question to be asking.
The more useful question is whether AI can improve the quality of the evidence and the control environment that professional judgement depends on.
As it has been said before – AI is just another tool, but how you wield it matters.
Why does evidence matter more than ever in R&D tax relief claims?
HMRC’s compliance activity around R&D tax relief claims has intensified considerably in recent years.
Evidence of qualifying activity is now expected to be contemporaneous, traceable and able to withstand technical scrutiny.
This is why AI’s real value in R&D tax advisory is not about producing a slicker first draft of a technical narrative, but instead in strengthening the record keeping and governance that sit behind a defensible claim.
HMRC has indicated in the past that it will check narratives for evidence of AI support, so there may be a greater risk than many realise in relying on robots to provide insight and information that should remain curated carefully by human expertise.
Where can AI genuinely help with R&D tax relief claims?
Used properly, AI can help capture evidence more consistently as a project develops, rather than trying to reconstruct it after the event.
It can also apply methodology more uniformly across a portfolio of claims, so that similar projects are assessed against similar standards.
There is a governance benefit too. AI can make the review process more traceable, which supports the standards that both HMRC and clients now expect.
None of this should be judged by how much output AI produces or how quickly it produces it, but rather the test is whether it improves the underlying evidence base upon which a claim is based.
What should AI not be trusted to do?
Decisions about eligibility, technological uncertainty and where the boundary sits between qualifying and non-qualifying activity remain matters for professional judgement.
The assessment of competent professional evidence also cannot be handed over to a tool. AI may help organise and analyse information, but responsibility for these decisions sits with the adviser.
AI tools can be drawn towards material that appears supportive of a claim while overlooking evidence that contradicts it. Human oversight is what catches this and it remains essential.
There is also a practical warning for anyone tempted to let AI write a claim from start to finish. Doing so raises data protection concerns and, as mentioned, a narrative that reads too similarly to previous submissions can itself attract HMRC’s attention.
Does AI reduce the value of an R&D tax consultant?
Businesses and accountants working with an R&D tax consultant who understands where AI genuinely adds value, and where it does not, are better placed to submit a robust and defensible claim.
If you are looking for support with your R&D tax advisory work and want to find out how our experts can support you, get in touch with our team today.
Adam Bointon is a Technical Director specialising in R&D Tax Credits for SMEs in manufacturing and software sectors. With over 15 years’ experience, he works closely with businesses to identify qualifying R&D activities and prepare clear, compliant claims. He combines technical expertise with a strong understanding of economics and finance to support successful outcomes. Adam also contributes to industry webinars and CPD sessions, sharing insights on R&D tax relief and HMRC requirements.
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