Aug 10

2026

HMRC’s new R&D advance assurance pilot: is it worth applying?

HMRC’s targeted R&D advance assurance pilot launched on 18 May 2026 and is due to run until May 2027. It allows eligible SMEs to ask HMRC for an advance view on specific complex or high-risk elements of an R&D tax credit claim. It does not approve the entire claim.
The service can be useful where one particular issue creates significant uncertainty. However, a refusal cannot be appealed and HMRC says you cannot apply for advance assurance again. You can still make the R&D claim through your Corporation Tax Return if you believe the conditions are met.

What the pilot covers

You can make up to two targeted advance assurance applications. Each application can cover one project and one of four areas:

• whether the project qualifies as R&D for tax purposes;
• whether overseas expenditure qualifies;
• the rules where R&D is contracted from one company to another; or
• exemption from the PAYE and National Insurance contributions cap.

These issues overlap with several of the most common R&D claim mistakes.

HMRC aims to process a complete application within 40 calendar days. The online form cannot be saved and does not accept attachments, so gather the project dates, forecast expenditure, competent professional details and supporting-record information before starting. An authorised agent can apply for you.

Advance assurance does not replace the normal claims process. An additional information form remains required, while a claim notification must also be submitted where the notification rules apply. These requirements sit alongside the wider 2026 R&D rule changes.

Targeted versus full claim advance assurance

A company cannot use both services for the same period or project.

The targeted pilot is unavailable to large companies, businesses seeking assurance on three or more areas, companies using full claim assurance for the same period, or cases involving certain tax-avoidance arrangements, Corporate Serious Defaulter status or an open Corporation Tax enquiry. An unresolved HMRC PAYE issue by itself is not listed as an automatic exclusion.

Why HMRC introduced the pilot

HMRC’s 2024/25 accounts recorded £7.7 billion of Corporation Tax R&D relief expenditure. HMRC estimated error and fraud at £481 million, or 5.9%, with the SME scheme estimated at 10.6%. The National Audit Office report on HMRC’s 2024 to 2025 accounts confirmed that the Comptroller and Auditor General qualified his regularity opinion because the estimated level remained material.

HMRC had increased R&D compliance staffing from around 100 people in 2021/22 to more than 500 by 2024/25. Meanwhile, the existing full advance assurance service received only about 80 applications in 2023/24 despite roughly 11,500 companies being eligible.

The new pilot therefore sits alongside wider moves towards earlier certainty, including the advance tax certainty service and HMRC’s broader AI-driven compliance roadmap.

When could it be worth applying?

The pilot is most useful where a claim turns on one clearly identifiable question. Examples include whether software development work qualifies as R&D, whether overseas costs meet the rules or which company can claim contracted-out R&D.

It is less suitable if you want general reassurance across several uncertain projects. A narrow assurance does not protect unrelated parts of the claim.

If an existing R&D dispute creates a significant repayment or cash-flow problem, business recovery and restructuring advice may also become relevant.

What about R&D claims in Ireland?

Ireland operates a separate regime. Revenue updated its guidance in 2026 to reflect a 35% R&D Corporation Tax Credit and a first-instalment threshold of €87,500. Claims generally need to be made within 12 months of the end of the accounting period in which the expenditure arose.

Businesses operating in both jurisdictions should therefore coordinate cross-border tax and accounting carefully, particularly when running companies in both the UK and Ireland.

Frequently asked questions

Is targeted R&D advance assurance compulsory?

No. It is a voluntary HMRC service and does not replace the normal claim process.

Can HMRC approve my whole R&D claim through the pilot?

No. Targeted assurance only covers the particular project and assurance area specified in each application.

Can I appeal if HMRC refuses assurance?

No. HMRC states that there is no appeal against refusal, although you can still submit an R&D claim in your Corporation Tax Return if you believe it is valid.

Where should I start?

Read the HMRC guidance on targeted advance assurance and identify the precise issue on which you need certainty.

Where supporting records need reviewing, forensic accounting support can help establish the underlying evidence. SCC Chartered Accountants’ SME business advisory team can also review the commercial and tax position before a claim is filed.

Speak to our chartered accountants across the UK, Ireland and Northern Ireland if you need help deciding whether targeted advance assurance is appropriate for your business.