HMRC has published guidance on a new targeted advance assurance scheme for research and development (R&D) tax relief claims, allowing eligible small and medium-sized enterprises (SMEs) to obtain certainty on up to two complex or high-risk areas of a claim before submission.
The UK’s tax authority, His Majesty’s Revenue and Customs (HMRC) issued guidance on 18 May 2026 setting out the application process for a new targeted advance assurance scheme for research and development (R&D) tax relief claims. The guidance is aimed at small and medium-sized enterprises (SMEs).
The targeted advance assurance process, also referred to as the “advance assurance pilot”, is designed to provide eligible SMEs with certainty on up to two specific complex or high-risk areas of an R&D tax relief claim.
Who can apply
A company can apply for the targeted advance assurance process if it:
- is a small or medium-sized enterprise (SME)
- is carrying out R&D, or is planning to carry out R&D in the accounting period assurance is being requested for
- has not yet claimed R&D tax relief for the period advance assurance is being requested for
- has not already received assurance on the 2 areas of its R&D work or project for the same period
The application can be completed by the company or by an agent acting on its behalf.
Targeted advance assurance is not available:
- to large companies
- to companies seeking assurance on 3 or more areas of their R&D claim
- to companies that have applied for full claim advance assurance for the same period
- where companies or any connected person (as defined in the Corporation Tax Act 2009) have:
- entered into a disclosable Tax Avoidance Scheme (DOTAS)
- been categorised as a Corporate Serious Defaulter
- an open enquiry into a Corporation Tax return
Companies seeking assurance on a full claim may be able to apply for full claim advance assurance on a first R&D tax relief claim.
What is needed to apply
Before applying, applicants should ensure they have:
- the Company Registration Number (CRN)
- the start date of the project
- contact details — including details of the competent professional and senior officer within the company
- project details — including:
- an overview of the project
- the start date of the accounting period intended for the R&D claim
- forecasted expenditure
- the project duration
- the type of records held
- information explaining why expenditure is considered eligible where overseas expenditure is one of the requested areas
Up to 2 applications for assurance may be submitted. Each application can only include one project and one area of R&D relief. Separate applications are required for additional projects or areas.
The areas of R&D relief eligible for assurance are:
- whether the project meets the definition of R&D for tax purposes
- whether overseas expenditure qualifies for relief
- whether the company can claim R&D relief where work is contracted by one company to another
- whether the company qualifies for exemption from the PAYE and National Insurance contributions cap
Failure to provide all required information may result in the assurance request being rejected.
How to apply
Applications may be submitted by an agent, R&D adviser or officer within the company.
Where an agent is used, the appropriate authorisation is required. For example:
- form 64-8 for authorising an agent
- form COMP1 where HMRC is to deal directly with a tax adviser or agent in relation to a compliance check
Email consent is required for communication by email.
Applicants are advised to gather all information before starting the online form, as progress cannot be saved and attachments cannot be added.
After applying
HMRC aims to process applications within 40 calendar days, subject to complete and accurate information being provided. HMRC may contact applicants if further information is required.
If advance assurance is granted
HMRC will issue a letter confirming that advance assurance has been granted based on the information provided. The letter will also explain the company’s responsibilities and the process if R&D activities change.
HMRC may also request feedback on the targeted advance assurance pilot.
If advance assurance is not granted
HMRC will issue a letter explaining the reasons for the decision. The decision cannot be appealed and a further advance assurance application cannot be made for the same request.
Companies that still believe R&D tax relief is due may submit a claim in a Company Tax Return. HMRC strongly advises checking the conditions for claiming in the area that was declined.
What the company needs to do next
Requesting advance assurance is not the same as making an R&D tax relief claim.
Companies must still follow the required steps for making an R&D tax relief claim, even where advance assurance has been requested or granted.
