The resolution of scientific or technological uncertainties is crucial in demonstrating eligibility to claim R&D tax relief,  yet it is often misunderstood or insufficiently evidenced in claims within the mechanical and electrical engineering (M&E) sector. This article provides a deep dive into how technical uncertainty manifests in real-world M&E projects, distinguishing qualifying work from routine engineering and highlighting best practices for evidencing the resolution of technical uncertainty within R&D claims.

Technical uncertainty arises when a competent professional in a field of science or technology is uncertain about whether a particular goal can be achieved or how to achieve it. In M&E engineering, this uncertainty often relates to the application of known scientific or engineering principles in new or constrained contexts.

Examples include:

• Designing a high-efficiency motor that must operate under extreme temperature and vibration constraints.

• Developing a compact electrical system for a device where space limitations preclude the use of standard configurations.

• Creating a bespoke automation solution where existing technologies are incompatible due to interoperability issues.

Separating technical uncertainty from project management, commercial, or operational uncertainties is crucial. Instead, the focus should remain on whether the solution required new knowledge, design iteration, or overcoming technological limitations beyond standard practices.

Documenting Technical Uncertainty: Robust documentation is key. Engineers should:

• Record failed design attempts, tests, and simulations.

• Keep technical meeting notes where challenges and alternative approaches were discussed.

• Highlight the lack of existing solutions or conflicting data in literature or existing technical standards.

This type of contemporaneous evidence not only supports the existence of uncertainty but also illustrates the systematic approach taken to resolve it.

Conclusion:

Mechanical and electrical engineering projects often involve the resolution of technical uncertainty, but these must be clearly defined, evidenced, and distinguished from non-qualifying project uncertainties. Doing so not only strengthens R&D tax claims but also supports a defensible position should HMRC enquire.

If you’d like to discuss the eligibility of your mechanical and electrical engineering projects in greater detail, please don’t hesitate to contact our team today.