HMRC launched its targeted R&D advance assurance pilot on 18 May 2026. The voluntary service runs until May 2027 and allows eligible small or medium-sized companies to ask HMRC for an early view on up to 2 complex or high-risk areas of a planned R&D tax relief claim.
The pilot can provide useful certainty, but it does not approve the entire claim. Any assurance applies only to the project, area and accounting period covered by the application, based on the information supplied.
Why the Pilot Was Introduced
The pilot followed the 2025 consultation on R&D advance clearances and was confirmed at Budget 2025. It runs alongside HMRC’s existing full-claim advance assurance scheme.
The older service is restricted to first-time SME claimants with turnover below £2 million and fewer than 50 employees. Take-up has been low: HMRC recorded around 80 applications in 2023/24 from approximately 11,500 eligible companies.
The targeted pilot is broader because previous R&D claimants can apply, provided they meet the eligibility rules and have not yet submitted a claim for the accounting period concerned.
Who Can Apply?
A company can apply if it meets the SME definition, is carrying out or planning R&D in the relevant accounting period, and has not yet claimed R&D relief for that period.
The service is unavailable to large companies, businesses seeking assurance on 3 or more areas, or companies that have applied for full-claim assurance for the same period. It is also unavailable where the company or a connected person has entered a disclosed tax avoidance scheme, is a Corporate Serious Defaulter or has an open Corporation Tax enquiry.
What Can HMRC Review?
You may make up to 2 applications. Each application must cover one project and one of these areas:
| Assurance area | What HMRC considers |
|---|---|
| R&D definition | Whether the project meets the tax definition of R&D |
| Overseas expenditure | Whether overseas costs qualify |
| Contracted-out R&D | Whether the company can claim where work is contracted between companies |
| PAYE and NIC cap | Whether the company qualifies for an exemption from the payable-credit cap |
A separate application is required for each area. HMRC aims to respond within 40 calendar days where complete and accurate information is supplied.
What Happens After an Application?
If assurance is granted, HMRC issues a letter confirming its view and explaining the company’s responsibilities. If the project or facts change, the assurance may no longer apply.
If HMRC refuses the application, it will explain why. There is no right of appeal, and HMRC says the company cannot apply for advance assurance again. A refusal does not prevent the company from submitting an R&D claim through its Company Tax Return.
Applying should therefore be a considered decision supported by clear technical explanations, realistic expenditure forecasts and evidence from a competent professional.
The Claim Is Still Required
Advance assurance does not replace the statutory claim process. The company must still submit its claim through the Corporation Tax Return and provide the required additional information form. Some businesses must also submit a claim notification form within the relevant deadline.
For accounting periods beginning on or after 1 April 2024, claims normally fall under the merged R&D expenditure credit scheme or Enhanced R&D Intensive Support rather than the former SME scheme.
Accurate cloud accounting for businesses can help organise payroll, contractor invoices and project costs. Monitor corporation tax deadlines, as an R&D claim must generally be made within 2 years of the end of the relevant period of account.
HMRC’s new mandatory tax adviser registration rules are being introduced in stages from May 2026. Use an appropriately qualified adviser who is authorised to interact with HMRC and understands the current overseas expenditure and contracted-out R&D rules.
Further guidance includes How to Reduce Corporation Tax, Corporation Tax Deadlines in the UK, Director’s Loan Accounts Explained, 3 Accounting Reports Every Limited Company Owner Should Review Regularly, Making Tax Digital: How Sole Traders Must Prepare for April 2027 and Navigating the New 2026 Dividend Tax Landscape.
Talk to Us About Your R&D Claim
At U&W, we are chartered accountants in Stockport supporting Greater Manchester businesses with corporation tax return services, R&D claims and year-round advice. We also provide self assessment tax return support for directors managing personal and company tax together.
To discuss whether targeted advance assurance is suitable for your project, get in touch today.
