Following its recent consultation, the Government has confirmed plans to pilot a new advance assurance service for R&D tax relief claims. Launching in Spring 2026, the pilot aims to provide small and medium-sized enterprises (SMEs) with greater clarity and confidence when preparing R&D claims.
The scheme will allow eligible SMEs to seek HMRC assurance in advance on one of four key areas:
- Whether a project qualifies as R&D for tax purposes
- Whether overseas expenditure qualifies for relief
- Which party is entitled to claim contracted-out R&D
- Whether the company qualifies for exemption from the PAYE/NICs cap
This initiative could be a welcome development for SMEs, particularly those navigating the increasingly complex R&D regime. If implemented effectively, it has the potential to de-risk the claims process by providing certainty at an earlier stage, helping businesses plan with more confidence.
However, the success of the pilot will ultimately hinge on HMRC’s ability to deliver a system that is efficient, timely and consistent, something that has historically been a challenge with the existing advance assurance framework.
Looking ahead, this could mark a shift towards a more collaborative and transparent approach to R&D tax relief, but businesses will need to wait and see how the pilot unfolds in practice.
