HMRC Launches R&D Targeted Advance Assurance Pilot
HMRC has today launched the Targeted Advance Assurance (TAA) pilot for Research and Development tax relief. The pilot runs for 12 months and is aimed at small and medium-sized enterprises (SMEs) that want pre-claim certainty on specific aspects of a proposed R&D tax relief claim.
The scheme responds to long-standing stakeholder feedback that earlier, more focused engagement with HMRC on complex or borderline claim areas would help companies make better-informed decisions before committing to a claim. It sits alongside the existing full claim Advance Assurance service, which remains available to eligible first-time claimants.
Who Is Eligible?
The pilot is open to SMEs that meet all of the following conditions:
- The company qualifies as an SME for R&D tax relief purposes.
- It is carrying out, or intends to carry out, R&D in the accounting period for which assurance is sought.
- It has not yet submitted an R&D tax relief claim for that period.
- It has not already received targeted advance assurance on the same two areas for the same period.
The following companies are excluded from the pilot:
- Large companies (who may, depending on circumstances, be eligible for the separate full claim Advance Assurance service).
- Companies seeking assurance on more than two areas of a claim.
- Companies that have already applied for full claim Advance Assurance for the same period
- Companies (or connected persons) that have entered into a disclosable Tax Avoidance Scheme under DOTAS.
- Companies categorised as Corporate Serious Defaulters.
- Companies with an open enquiry into a Corporation Tax return.
What Areas Can Be Covered?
Applications are restricted to a maximum of two areas, each from the following list, and each must relate to a single project:
- Whether the project meets the definition of R&D for tax purposes.
- Whether overseas expenditure qualifies for relief.
- Whether R&D relief can be claimed where the R&D work is contracted out.
- Whether the company qualifies for the PAYE and NIC contributions cap exemption.
A separate application form must be submitted for each area selected. Applicants cannot bundle two areas into a single form.
How to Apply
Applications can be made directly by the company or by an authorised agent (using the standard form 64-8, or form COMP1 where a compliance check is underway). The application is submitted online via a Microsoft Forms link on the GOV.UK guidance page. There is no facility to save progress partway through, and attachments cannot be uploaded, so applicants should have all required information to hand before starting.
Information required includes:
- Company Registration Number.
- Project start date.
- Contact details for the competent professional and a senior officer of the company.
- A project overview, including the accounting period start date, forecasted expenditure, project duration, and the type of records held.
- If overseas expenditure is one of the areas selected: information explaining why the company believes it can claim that expenditure.
If any required information is missing, HMRC may reject the application rather than seek clarification.
Timescales and HMRC's Response
HMRC is targeting a response within 40 calendar days of receipt of a complete application. Where further clarification is needed, that timeframe may be extended. Responses will be in writing.
If advance assurance is granted, HMRC will confirm in writing on the basis of the information provided. Importantly, the assurance does not guarantee that a subsequent enquiry will not be opened. Any assurance is specific to the facts as presented and subject to the accuracy of the information given.
If assurance is refused, HMRC will explain its reasons. The company is not thereby prevented from making a claim; it simply will not have pre-claim certainty on that area.
What the Pilot Does Not Do
The pilot provides targeted pre-claim assurance only. It does not:
- Replace the requirement to submit a full R&D claim via the Corporation Tax Return.
- Dispense with the need to submit a Claim Notification (where required) or an Additional Information Form.
- Extend to areas outside the four listed above.
- Cover large companies or those with open enquiries.
- Provide a binding ruling equivalent to a statutory clearance.
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