To help address this, HMRC have offered an “advance assurance” application process to give businesses more certainty about their claims. As part of its consultation process, the UK Government has investigated whether a new clearance system could help improve the claim process, as well as reduce fraud and error in the claims for relief.
Two new schemes have been launched, the first represents a modified version of the existing “full claim” advance assurance, and the second is a pilot of the new Targeted Advance Assurance (TAA) scheme which went live on 18 May 2026.
Full claim advance assurance
This scheme can be utilised by first time SME claimants only. The SME must have a turnover below £2 million and fewer than 50 employees.
The form can be accessed and submitted online through the HMRC website. HMRC will then contact the company to discuss the application and obtain further information. If the company obtains advance assurance, it serves as a guarantee that claims will be accepted if they’re in line with what was discussed and agreed on their application. The advance assurance will apply to the company’s first three R&D tax relief claims.
If denied, an advance assurance decision cannot be appealed, nor can the company resubmit an application. However, refusal of advance assurance does not prevent an R&D tax relief claim being made.
Pilot Targeted Advance Assurance (TAA) scheme
The second is the new Targeted R&D advance assurance pilot, which is running for 12 months to May 2027. This is open to any SME (including existing claimants) to get a legally binding decision on up to two specific, high-risk areas before submitting a claim.
You can ask HMRC for upfront certainty on:
- whether the project meets the definition of R&D for tax purposes
- whether overseas expenditure qualifies for relief
- whether relief can be claimed where R&D work is contracted out
- whether the company qualifies for an exemption from the PAYE and National Insurance contributions cap
This is useful for claims that include, for example, a complex contractual arrangement or overseas sites. Whilst it does not make a claim 100% enquiry proof, getting advanced sign off on a specific issue heavily reduces the chances of a lengthy, disruptive post submission investigation on that topic.
HMRCs target response time is 40 calendar days, therefore this will be a slow process and should not be used where a client has a fast approaching corporate tax deadline.
The advance assurance scheme could be useful for those clients that have a high-value claim with genuinely complex, borderline legislative positions. However, the scope of the TAA is narrow so complex claim issues should first be considered by your R&D advisor as part of the claim preparation process.
Please contact Lucy Lloyd at lucy.lloyd@kilsbywilliams.com or James Davies at james.davies@kilsbywilliams.com to discuss how we may assist you with the new scheme. You may prefer to email info@kilsbywilliams.com for more general enquiries and advice.
