HMRC launches targeted Advance Assurance pilot for R&D claims
HMRC has launched a new targeted Advance Assurance pilot for research & development (R&D) tax relief, giving eligible SMEs the opportunity to seek early clarity on specific high-risk areas of a claim before submission.
The move reflects HMRC’s continued focus on improving compliance and increasing certainty in more complex areas of R&D tax relief. At a time of heightened scrutiny, many businesses are placing greater value on clarity before or during claim preparation, rather than relying on retrospective resolution after submission if HMRC raise a query through a compliance check.
What is targeted Advance Assurance?
The new service allows SMEs to obtain HMRC’s view on specific aspects of an R&D claim, rather than seeking assurance on the claim as a whole (with the existing Advance Assurance programme continuing alongside it).
Launched initially as a 12-month pilot, the scheme focuses on four areas HMRC has identified as higher risk or more commonly challenged:
- Whether the work qualifies as R&D (for a single project)
- Application of the PAYE/NIC cap and exemptions
- Treatment of overseas R&D expenditure
- Whether the correct entity is claiming relief under contractual arrangements
Businesses can apply for assurance on up to two areas, making this a targeted tool aimed at resolving key technical uncertainties.
Who can apply?
You can apply if your company:
- Is an SME that is preparing or intending to submit an R&D claim
- Has not yet claimed R&D tax relief for the period in question
- Does not have an open Corporation Tax return enquiry
The pilot is also currently limited to SMEs and applications must be made before the relevant claim is submitted.
How the process works
Each application must relate to a single project and a single assurance area, meaning multiple applications may be required.
Applicants must provide:
- Project summaries and background activity
- Details of the advance or improvement sought
- Explanation of scientific or technological uncertainty
- Forecast costs and supporting information
HMRC has indicated a target response time of around 40 days, with scope for follow-up questions or discussions.
What it does and doesn’t provide
While the service may offer useful early clarity, it is important to understand its scope:
- It does not constitute full claim approval
- It does not eliminate the possibility of a later enquiry
- It is not a substitute for robust technical analysis and documentation
Instead, it should be viewed as a targeted risk-management tool, helping businesses address specific areas of uncertainty within a claim.
What to consider
HMRC’s pilot is the latest step in its drive to improve the quality and consistency of R&D claims.
For eligible SMEs, it offers a structured route to gain early clarity on key technical points – but it remains only one element of a broader, well-prepared claim strategy. Businesses utilising the programme need to proceed with caution or seek specialist support alongside.
We’re here to help
R&D tax relief continues to evolve, with increased scrutiny and complexity across claims. Whether you’re considering the new assurance pilot or preparing a submission, getting the right support early is critical.
Speak to our specialist R&D tax team to understand how the pilot may apply to your business and ensure your claim is robust, well‑evidenced and defensible.
