What is the advance assurance scheme for R&D?

HMRC Guidance / Practice

The R&D Advance Assurance scheme is a facility available to small and medium-sized enterprises (SMEs) making their first R&D tax relief claim. Here is how it works:

Who Can Apply

The scheme is available to companies applying for R&D relief for SMEs for the first time. HMRC encourages SMEs making their first R&D claim to consider applying for advance assurance if they have any doubts about how the schemes operate.

How to Apply

A company applies using the advance assurance form. Once HMRC receives the application, they will contact the company to discuss the R&D in more detail. This is normally a short phone call, but may involve a longer discussion or a visit to the company if the case is more complex.

What Advance Assurance Provides

If Advance Assurance is granted:

• HMRC will guarantee the claim will be accepted, as long as it is in line with what was discussed and agreed in the application.
• HMRC will allow the claim without further enquiries for the first three accounting periods of claiming R&D tax relief.

Compliance Handling

Compliance work relating to R&D claims (including advance assurance applications) is handled by trained HMRC Officers, supported by R&D Specialists, within the designated ISBC (Individuals and Small Business Compliance) and WMBC (Wealthy and Mid-sized Business Compliance) teams.

Note: Sources [5/6] and [6/6] in the original retrieved sources relate to advance assurance for Venture Capital schemes (EIS/SEIS/SITR), not R&D tax relief, and have not been relied upon above.