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Targeted advance assurance pilot: HMRC’s new option for R&D tax relief claims

By Jonathan Yeomans, former HMRC Senior Tax Inspector

In April 2025 we discussed HMRC’s consultation about potential changes to the advance assurance scheme. Since then, HMRC has started a pilot of a new targeted advance assurance service for R&D tax relief. It launched on 18 May 2026 and runs until May 2027. Eligible SMEs can ask for HMRC’s view on specific areas of a proposed R&D claim before they submit it.

Advance assurance is a voluntary HMRC service that lets a company send details of its R&D work to HMRC before it claims R&D tax relief. Until the pilot, the only version was full claim advance assurance, which covers the whole claim but is open only to smaller companies claiming for the first time.

Where the pilot came from

In 2025, HMRC consulted on R&D tax relief advance clearances, looking at wider use of pre-claim clearance to reduce error and fraud. One possibility it raised was that clearance could become a mandatory step for some claimants. For background on the consultation, see our earlier article, Will future R&D claims need the Advance Clearance green light?

HMRC published its summary of responses on 26 November 2025. It announced a limited pilot of a targeted advance assurance service, in response to calls for more accessible assurance focused on complex or high-risk parts of a claim. The pilot launched on 18 May 2026.

How targeted advance assurance differs

Targeted advance assurance is voluntary and open to SMEs only. It covers specific areas of a claim rather than the whole claim. Unlike full claim advance assurance, it is open to companies that have claimed R&D tax relief before, as long as they haven’t yet claimed for the period they are asking about.

Full claim advance assurance remains available to SMEs making their first R&D tax relief claim, with a turnover below £2 million and fewer than 50 employees. If it is granted, it covers the company’s first three accounting periods.

Main points of the pilot

The targeted advance assurance guidance sets out how the pilot works:

  • Dates: The pilot launched on 18 May 2026 and will run until May 2027.
  • Who can apply: The company must be an SME that is carrying out or planning R&D in the accounting period it is asking about, and it must not yet have claimed R&D tax relief for that period.
  • Who cannot apply: Large companies cannot apply. Nor can a company that wants assurance on three or more areas of its claim or has applied for full claim advance assurance for the same period. A company is also excluded if it or a connected person has entered into a disclosable tax avoidance scheme (DOTAS), has been categorised as a Corporate Serious Defaulter or has an open enquiry into a Corporation Tax return.
  • What it covers: Assurance is available on four areas: whether the 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 and whether the company qualifies for exemption from the PAYE and National Insurance contributions cap.
  • Number of applications: A company can make up to two applications, and each one covers a single project and a single area.
  • Timing: HMRC aims to process an application within 40 calendar days, provided the information it receives is full and accurate.
  • If refused: HMRC explains its reasons in a letter. The company cannot appeal the decision or apply for advance assurance again, although it can still include an R&D claim in its Company Tax Return.
  • Choosing a service: A company cannot apply for both targeted advance assurance and full claim advance assurance for the same period or project.

Advance clearance is not mandatory

HMRC has not announced a general requirement for companies to obtain advance clearance before making an R&D tax relief claim. Full claim advance assurance continues alongside the pilot.

Our view

We see targeted advance assurance as a potentially positive step. Its value will depend on how consistently HMRC applies the rules and how well the service works in practice.

We’ll be watching the Budget on 28 October 2026 closely for any news on advance assurance or the pilot, and will publish a summary of where advance assurance stands once the Budget has been delivered.

Help with an application

If you’re considering targeted advance assurance, we can help you prepare and submit your application. Email us at team@rdreliance.com or book a call.

Sources

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