The UK’s R&D tax relief scheme could be facing a major shift. HMRC has launched a consultation (opens in new tab) on reforming the current Advance Assurance (opens in new tab) (AA) scheme, raising the possibility that pre-claim clearance could become a mandatory step in the future, at least for some claimants.
At RD Reliance, we help companies across the UK claim R&D tax reliefs. We also help businesses prepare and make Advance Assurance applications for approval, where eligible.
If this latest consultation leads to reform, the ‘green light’ of Advance Assurance, or a new ‘Advance Clearance’ scheme, could become a gateway requirement for some future R&D tax relief claims before full claim submission.
What is Advance Assurance?
The current Advance Assurance scheme offers first-time R&D claimants a measure of certainty. If approved, HMRC agrees not to enquire into their first three R&D claims, provided they align with the activities described in the AA application.
Current AA eligibility is limited to SME businesses that meet the following criteria:
- They are making their first R&D tax relief claim.
- They have a turnover of less than £2 million.
- They have fewer than 50 employees.
Could pre-claim approval become mandatory?
The new consultation (opens in new tab) is exploring whether Advance Assurance, or something similar but with wider accessibility called ‘Advance Clearance’, should be made compulsory for some claimants, especially those seen as higher-risk by HMRC, or operating in sectors with higher rates of error.
That’s a major potential change. At present, AA is optional and limited in scope. But in future, claimants may be required to secure approval before progressing with a claim at all. If HMRC takes this route, it could mark a shift from a voluntary assurance model to a mandatory gatekeeping step for at least some companies.
Why this matters now
While nothing is changing immediately, the latest consultation strongly suggests that HMRC is aiming for greater control and upfront scrutiny over R&D claims soon, particularly from new or high-risk applicants.
This consultation could throw the future of the R&D tax scheme into flux. If reforms do go ahead, whether soon after the consultation closes (in May 2025) or over the next few years, it could reshape the way some claimants approach R&D tax relief.
At RD Reliance, we’re closely monitoring developments and helping clients prepare. As usual (opens in new tab), we’ll also be responding to this consultation to reflect our clients’ views.
Get ahead of the green light
So, whether you're:
- Considering applying for Advance Assurance
- Keen to contribute to the latest consultation
- Unsure whether your claim meets HMRC’s expectations
- Looking to claim R&D tax relief in a compliant way
...we’re here to help you navigate the current rules, ensure your claims are accurate, robust and able to withstand HMRC scrutiny, and prepare for what’s next.
Talk to RD Reliance today for specialist support across the full R&D claim process, from securing Advance Assurance (if desired), to submitting claims that are accurate, maximised, compliant and ready for HMRC scrutiny. Email us at team@rdreliance.com to get started.