Tax Relief Update
HMRC Introduces Targeted Advance Assurance for R&D Claims
A new pilot service aims to give SMEs more clarity on complex or high-risk R&D tax relief claims before they submit.
HM Revenue & Customs has introduced a new targeted advance assurance service for Research and Development tax relief claims.
The pilot service is designed to help businesses gain clarity on specific areas of an R&D claim before making a submission, reducing uncertainty around complex or higher-risk claims.
What can businesses seek assurance on?
- Whether a project meets the tax definition of R&D
- Whether overseas expenditure qualifies for relief
- Whether contracted R&D work qualifies
- Whether the PAYE and National Insurance cap exemption applies
Unlike the existing full claim advance assurance service, the targeted assurance pilot is open to eligible SMEs and can be used for specific areas of concern.
The pilot will run until May 2027, helping HMRC test demand and identify which parts of the service are most useful to businesses.
Businesses should note that requesting advance assurance is not the same as making a claim. Companies will still need to submit their R&D tax relief claim in the usual way.
Read HMRC Guidance