HM Revenue & Customs (HMRC) wants more UK businesses to know about advance assurance before they claim Research and Development (R&D) tax relief.
In its latest Agent Update, published on 15 October 2026, HMRC confirmed new steps to raise awareness of these services.
Since 12 October, HMRC’s R&D staff have added guidance links to their external email signatures. The same information now appears in automatic replies from the main R&D compliance mailbox.
This helps small and medium-sized enterprises (SMEs) find guidance before they submit a claim. It also puts a spotlight on HMRC’s targeted assurance pilot, which runs until May 2027.
What Has HMRC Announced About R&D Advance Assurance?
HMRC is making two existing assurance services easier to find. Both help eligible businesses understand their R&D tax relief position before they file.
This update does not create a new tax relief scheme. It simply makes the guidance easier for businesses and tax advisers to find.
HMRC launched its Targeted Advance Assurance pilot on 18 May 2026. SMEs can use it to get clarity on specific parts of their claims.
You can ask for assurance before you file, so you can settle any doubts early.
Who Can Apply for R&D Advance Assurance?
HMRC offers two routes. The right one depends on your company’s situation.
Full Claim Advance Assurance
This service helps eligible SMEs that are claiming R&D tax relief for the first time.
To qualify, your business must:
- Have an annual turnover below £2 million.
- Employ fewer than 50 people.
- Meet HMRC’s first-time claimant conditions.
If HMRC grants assurance, it can cover your company’s first three accounting periods.
Targeted Advance Assurance
This pilot is open to eligible SMEs, including businesses that have claimed R&D relief before. You can ask for assurance on up to two specific areas before you submit your claim. You can’t use both assurance services for the same period or project, though.
What Areas Does Targeted Advance Assurance Cover?
The pilot covers four areas where businesses often need a clear answer:
- Project eligibility: Does the research meet HMRC’s R&D definition?
- Overseas expenditure: Do research costs from abroad qualify?
- Contracted-out R&D: Which company can claim relief for outsourced research?
- PAYE and National Insurance: Does the business qualify for an exemption from the cap?
Each application covers one project and one area.
How Long Does HMRC Take to Respond?
HMRC aims to process targeted applications within 40 calendar days. That only works if you send complete and accurate information.
If HMRC approves your application, the assurance can last for the whole project, for up to five years.
Approval does not guarantee a tax refund, though.
You still need to submit your Company Tax Return and meet every R&D filing rule, including the Additional Information Form.
If HMRC refuses assurance, you can’t appeal. You can still submit a claim if you believe you qualify, though a disputed claim can sometimes lead to an HMRC enquiry, so it pays to prepare carefully.
What Should SMEs Do Now?
If your business is eligible, review your projects before you file.
Here’s where to start:
- Decide which assurance service fits your needs.
- Gather project details, costs, and supporting records, kept in order through consistent bookkeeping.
- Note any doubts about eligibility or spending.
- Think about applying before the targeted pilot closes in May 2027.
Skip these checks, and you may reach filing day with questions still unanswered. Advance assurance gives you early clarity, but it stays voluntary, and it works best alongside wider tax planning.
How Can Lanop Help?
R&D tax relief rules can feel hard to follow, especially when your projects involve complex costs. Lanop’s tax advisers can help SMEs check eligibility, organise supporting records, and prepare R&D tax relief claims. If you’re thinking about advance assurance, we can also help you choose the right application route.
Contact Lanop today to talk through your R&D tax relief position and prepare your claim with confidence.
