Jul 21

2026

Decoding the 2026 R&D tax changes: how to use the new advance assurance service

HMRC launched its targeted R&D advance assurance pilot on 18 May 2026. It allows an eligible small or medium-sized enterprise to ask HMRC for a view on up to two complex or high-risk areas before submitting an R&D tax relief claim. The pilot runs until May 2027 and aims to respond within 40 calendar days when complete information is provided. It can reduce uncertainty, but it does not approve the whole claim or replace the normal filing process.
For accounting periods beginning on or after 1 April 2024, the merged R&D expenditure credit scheme and Enhanced R&D Intensive Support replaced the old RDEC and SME schemes. ERIS is available to qualifying loss-making SMEs whose relevant R&D expenditure is at least 30% of total expenditure. The Additional Information Form is required for every claim, while some companies must also submit a Claim Notification Form.

Our guide to common mistakes when claiming R&D relief explains why evidence, cost analysis and filing dates must be considered together. HMRC continues to publish its approach to error and fraud across the reliefs. Where a claim is disputed, forensic testing of the figures may establish what the records support, while a delayed credit can put pressure on cash flow.

How the targeted pilot works

A company can submit up to two applications. Each must concern one project and one assurance area.

The company or an authorised agent can apply. HMRC requires an overview of the project, forecast expenditure, the accounting-period start date, records held and details of the competent professional and senior company officer. The online form cannot be saved and does not accept attachments, so prepare the answers before starting.

If assurance is granted, HMRC issues a letter based on the information supplied. It may not apply if the project or expenditure later changes. If assurance is refused, HMRC explains why, but there is no appeal through the pilot. The company may still make the claim in its Company Tax Return if it considers the legal requirements are met.

Who can apply

The pilot is available to eligible SMEs carrying out or planning R&D in the relevant period, provided they have not already claimed for that period. It is unavailable to large companies, businesses seeking assurance on three or more areas, companies using full claim advance assurance for the same period, and cases involving an open Corporation Tax enquiry, a relevant DOTAS arrangement or Corporate Serious Defaulter status.

The existing full claim advance assurance service remains available to eligible SMEs making their first R&D claim and can cover the first three accounting periods. A company cannot use both services for the same period or project.

When an application is worthwhile

Apply where a specific issue is uncertain and financially material. A substantial overseas work package or complex contracted-out arrangement may justify the work. A straightforward project supported by strong contemporaneous evidence may be better handled through the normal claim process.

Good management accounts and cloud bookkeeping help separate qualifying costs and preserve the audit trail. Businesses operating across the UK and Ireland should review R&D tax credits across the UK and Ireland with a cross-border accounting and tax adviser because the systems differ.

SCC’s SME business solutions team can assess whether the pilot suits your claim. If a delayed or challenged claim is creating financial pressure, the recovery and restructuring team can help. Speak to SCC Chartered Accountants before filing.