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?
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.
Related Topics
-
Payment deadline for corporation tax
-
HMRC targets undeclared consultancy income in the medical sector
HMRC is writing to people working in the medical sector where information supplied by private healthcare providers suggests that consultancy fees may have been omitted from their tax returns. Recipients have 30 days to check their position and respond. What should you do if you get a letter?
-
MONTHLY FOCUS: BUSINESS AND AGRICULTURAL PROPERTY RELIEF: WHAT DO THE NEW IHT RULES MEAN FOR YOU?
The inheritance tax treatment of businesses and farms changed fundamentally from 6 April 2026. The amount that can qualify for 100% business property relief and agricultural property relief is now capped, potentially leaving families with a significant tax bill for the first time. What has changed, and what should business owners and farmers be doing about it?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.