R&D Tax Relief Advance Assurance Applications
R&D advance assurance lets a company get HMRC's agreement before it claims. HMRC now runs two services: full claim advance assurance for eligible first-time SME claimants, and targeted advance assurance, launched on 18 May 2026, which lets SMEs ask about up to two specific areas of a claim.
What is targeted advance assurance?
Targeted advance assurance is an HMRC service, launched on 18 May 2026, that gives an SME a view on up to two specific areas of a planned or current R&D claim before it is submitted. It is designed for the points that most often cause disputes. HMRC's guidance sets out four areas you can ask about:
- Whether a project meets the tax definition of R&D
- Whether overseas expenditure qualifies
- Whether relief can be claimed where work is contracted from one company to another
- Whether the company qualifies for exemption from the PAYE and NIC cap
You cannot apply if you have already claimed for the period, if you have applied for full advance assurance for the same period, or if the company or a connected person has an open Corporation Tax enquiry, has used a disclosable tax avoidance scheme, or is a Corporate Serious Defaulter. Source: GOV.UK targeted advance assurance guidance.
What is full claim advance assurance?
Full claim advance assurance is the longer standing service for eligible SMEs making their first R&D claim. If HMRC agrees the approach, it will accept claims made on that basis for up to the first three accounting periods without further enquiry, provided the facts stay the same. You cannot use both services for the same period or project. See GOV.UK advance assurance guidance.
Why use a specialist for an application?
A specialist helps because a targeted application is a single online form that cannot be saved and does not accept attachments, and a refusal cannot be appealed. The case has to be clear, complete and well framed in one go. A specialist will choose which project and area to apply on, draft the technical description and check the facts against the guidelines before you submit.
Is advance assurance worth it?
Advance assurance is worth it when one uncertain point decides whether a large claim succeeds, such as an overseas trial, a contracting arrangement or a borderline software project. For straightforward claims, a well prepared claim with good records may be enough. Your specialist can tell you which applies.
Targeted or full advance assurance: which suits you?
| Feature | Targeted advance assurance | Full claim advance assurance |
|---|---|---|
| Who | SMEs, including previous claimants | Eligible SMEs making their first claim |
| Scope | Up to 2 specific areas, one project per area | The whole claim approach |
| Coverage | The period applied for | Up to the first three accounting periods |
| Typical use | Overseas costs, contracting, R&D definition, PAYE cap exemption | First claims where the company wants certainty |
| Appeal if refused | No appeal or resubmission | Claim normally instead |
What makes a strong targeted application?
A strong targeted application describes one project and one question clearly and completely. For a definition question, it explains the baseline, the advance sought, the uncertainties and why a competent professional could not readily resolve them. For an overseas question, it explains why the work cannot be done in the UK by reference to geography, environment, population, or legal or regulatory requirements. Because the form cannot be saved and accepts no attachments, draft everything offline first and check it against HMRC's guidance.
How long does assurance last?
Targeted assurance applies to the period and facts described. If the project changes materially, the assurance may no longer apply. Full claim advance assurance covers up to the first three accounting periods if the facts stay the same. Either way, keep records showing that what you claim matches what you described.
What is the government planning next?
In its October 2026 consultation, the government said the targeted pilot is gathering participants' views on its value and possible improvements, and that work to improve advance assurance is ongoing. The pilot is expected to inform future decisions. Source: HM Treasury consultation, October 2026.
Who should apply?
- SMEs with one uncertain point that decides a large part of the claim
- Companies running trials or work abroad that they believe cannot be done in the UK
- Companies doing R&D under contract where it is unclear who should claim
- Companies whose payable credit depends on the PAYE cap exemption
- First-time claimants who want HMRC's agreement before claiming
How do you apply for targeted advance assurance?
- Choose one project and one of the four areas HMRC allows.
- Draft the description offline, covering every point HMRC's guidance asks for.
- Have your competent professional and your adviser check it.
- Complete the online form in one sitting, because it cannot be saved.
- Keep a copy of what you submitted, and the assurance letter if you receive one.
Does assurance stop HMRC checking the claim?
Assurance gives HMRC's view on the area you asked about, based on the facts you gave. HMRC can still check other parts of the claim, or the assured area if the facts turn out to be different. Keep records that show your claim matches your application.
Should you claim anyway if you are unsure?
If you are unsure whether a project qualifies and do not apply for assurance, you can still claim, but take extra care with evidence and consider leaving out the most doubtful items. A specialist can tell you whether the uncertain point is worth an assurance application or better handled through careful drafting.
Can a specialist apply for us?
Yes. HMRC allows an authorised agent to apply on the company's behalf. The company remains responsible for the accuracy of the information, so your technical lead should review the application before it is submitted.
Frequently asked questions
Which areas can targeted advance assurance cover?
Whether a project meets the tax definition of R&D, whether overseas expenditure qualifies, whether relief is available where R&D is contracted from one company to another, and whether the company qualifies for exemption from the PAYE and NIC cap. Each application covers one project and one area, with up to two areas per period.
How long does HMRC take?
HMRC aims to process targeted advance assurance applications within 40 calendar days, provided the information is full and accurate.
Can large companies apply?
No. Both advance assurance services are for SMEs.
Can we appeal if assurance is refused?
No. HMRC's guidance says a refused targeted application cannot be appealed or resubmitted, so it pays to get the application right first time.
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