HMRC offers small and medium-sized enterprises (SMEs) two voluntary advance assurance services. These services give businesses more certainty about Research and Development (R&D) tax relief claims. Importantly, businesses get this certainty before they submit a claim. You can choose the new targeted advance assurance service, also known as the advance assurance pilot. Alternatively, you can choose the existing full claim advance assurance service. Each option suits different businesses, so it helps to understand how they work.
What is the targeted advance assurance pilot?
HMRC launched the targeted advance assurance pilot in May 2026. Currently, the pilot will run until May 2027. It lets eligible SMEs seek assurance on specific complex or high-risk areas of a claim. Crucially, businesses can do this before they make the claim. As a result, they can resolve uncertainty early and plan with more confidence.
Which areas does the pilot cover?
The pilot focuses on areas that often raise questions. These include:
- whether a project qualifies as R&D for tax purposes
- overseas expenditure
- contracted-out R&D
- exemption from the PAYE and National Insurance contributions cap
How many applications can you make?
Each application can cover one project and one area of R&D relief. In addition, a business can make up to two applications for targeted advance assurance. Businesses should therefore think carefully about which areas carry the most risk.
The full claim advance assurance service
By contrast, the existing full claim advance assurance service supports first-time claimants. It is open to SMEs making their first R&D tax relief claim. To qualify, a company must have a turnover below £2 million. It must also have fewer than 50 employees. Once HMRC gives assurance, it can cover the first three accounting periods. This gives new claimants valuable peace of mind during their early years.
Can you apply for both services?
No, a company cannot apply for both the pilot and the full claim service. For this reason, businesses should compare both options before deciding which one to pursue.
What advance assurance does not do
Advance assurance on R&D claims is voluntary. Moreover, it does not replace the requirement to submit a claim through the Company Tax Return. Businesses must still complete all other required steps. Before applying, they should check the eligibility criteria and application requirements. That way, they can avoid delays and make the most of either service.
Need help with advance assurance on R&D claims?
Our R&D tax specialists can help you choose the right service for your business. We can also support your application and your final claim. Get in touch with our team today to find out more.
