Advance assurance pilot confirmed

There have been a number of changes to how research and development tax credits are claimed in recent years. HMRC has now confirmed that a pilot of a new clearance procedure will begin later this year. What do we know so far?

Advance assurance pilot confirmed

Research and development (R&D) tax credits provide corporation tax relief for companies that incur expenditure undertaking qualifying activities. A number of new requirements have been introduced in recent years, including the need to notify HMRC of the intention to make a claim prior to making it. Following a consultation, HMRC has now confirmed that a new targeted advance assurance service will be piloted. Previously, a very restricted service, aimed at the smallest companies, has been available.

The service will aim to help provide confidence that a project will qualify for relief before a claim is made. The service will cover the following aspects:

  • whether the project meets the definition of R&D for tax purposes
  • whether overseas expenditure qualifies for relief
  • which party can claim relief for contracted-out expenditure; and
  • whether the company qualifies for exemption from the pay as you earn (PAYE) or National Insurance contribution cap.

There is no confirmed start date yet; the announcement in Agent Update 138 simply says it will be in Spring 2026.

Muir & Addy is a partnership registered to carry out audit work by the Institute of Chartered Accountants in Ireland (ICAI). Chartered Accountants Ireland is the operating name of ICAI.

Details of our audit registration can be viewed at www.auditregister.org.uk, under reference number 223287.

Chartered Accountants in Ireland (ICAI)