HMRC introduces targeted advance assurance service for R&D claims

From 18 May 2026 onwards, HMRC will now have two types of advance assurance for R&D claims. With R&D claims being more closely scrutinised by HMRC this can prove to be a very useful tool for some companies, as they will have clarity whether their R&D claim will be approved by HMRC or not prior to submission

HMRC are now offering two types of advance assurance for R&D claims, which are as follows:

Full claim advance assurance service

This is the existing advance assurance option, and it is only open to companies that are claiming R&D relief for the first time, if the company is in a group, it cannot use this service if any of its linked companies have claimed R&D relief before. In addition, the company looking to seek assurance through this route must have a turnover level of less than £2m and less than 50 employees.

The service, which is only open to SME’s, does provide advance assurance for the entire R&D claim. In addition, if advance assurance is granted through this service, it will cover the first three accounting periods.

Full claim advance assurance has not been popular as HMRC would have hoped for, though it could be argued its scope was limited.

Targeted advance assurance

This is open to all SME’s considering making a R&D claim and will give assurance on two specific complex or high-risk areas that will make up the company’s planned R&D claim. This is open from 18 May 2026, and this pilot will be expected to run until May 2027.

Companies will need to choose which advance assurance service they want to use. It is not possible to apply for both targeted and seek the full claim advance assurance that was previously in existence for the same period or project.

Under targeted advance assurance, companies can seek assurance on:

• Whether a project meets the definition of R&D for tax purposes.
• Whether overseas expenditure qualifies for relief.
• Whether R&D relief can be claimed where work is contracted by one company to another.
• Whether the exemption from the PAYE and National Insurance contributions cap applies.

Targeted advance assurance is, however, limited to providing assurance on a maximum of two areas of the R&D work or project for the same period.

An application can only include one project and one area of R&D relief. For companies seeking assurance on a second project or area, a separate application must be submitted.

Requesting advance assurance from HMRC under either of the options described above is different from making a claim. A company will still need to make an actual claim in its corporation tax return for a claim to be valid.

If you think the full claim or new targeted advance assurance could be useful to you, or you would like help on any aspect of your R&D tax relief claim, please do get in touch with Alan Rolfe using the details below.