Definition
Routine improvement is work that extends or enhances an existing product, service or process using techniques that are already known or readily deducible by a competent professional in the field. The BIS Guidelines exclude routine improvement from the definition of research and development for tax purposes, reserving the relief for work that seeks an advance in overall scientific or technological knowledge or capability. The distinction is a frequent area of HMRC enquiry.
How HMRC defines it
HMRC sets out its position on routine improvement at CIRD81300 and CIRD81700 of the CIRD Manual, drawing on paragraphs 12 to 18 of the 2023 BIS Guidelines. Worked examples of routine versus non-routine work are provided in HMRC's Guidelines for Compliance GfC3, Help to see if your work qualifies as R&D for tax purposes.
Practical example
A manufacturing company redesigns a gearbox using standard CAD tools and well-established design rules to reduce weight by 5%. No new scientific or technological knowledge is sought and a competent mechanical engineer could have reached the same outcome using published methods. The work is routine improvement and does not qualify as R&D for tax purposes.