HMRC launches new Targeted Advance Assurance pilot for R&D tax relief claims
HMRC has published new guidance for companies wishing to obtain advance clarity on specific areas of their Research and Development tax relief claim. Published on 18 May 2026, the guidance introduces a new Targeted Advance Assurance process. Importantly, this new process does not replace the existing full claim Advance Assurance scheme. HMRC has confirmed that, while the pilot runs, the existing Advance Assurance offer will continue.
The new name reflects the more focused nature of the pilot. Rather than applying for assurance over a first R&D claim more broadly, eligible companies can ask HMRC to consider up to two specific complex or high-risk areas of an R&D tax relief claim. For companies preparing an R&D claim, this could provide a useful route to greater certainty before the claim is submitted, particularly where a technical or claim-specific issue is unclear.
What is the new Targeted Advance Assurance pilot?
Targeted Advance Assurance is a new pilot process that allows eligible SMEs to ask HMRC for its view on particular areas of an R&D tax relief claim before the claim is made.
HMRC has described the process as a limited pilot of a new targeted advance assurance service, introduced in response to feedback calling for assurance that is more accessible and focused, particularly on complex or high-risk aspects of claims. The process is intended to provide clarity on up to two specific areas of uncertainty. These may include whether a project meets the definition of R&D for tax purposes, whether overseas expenditure qualifies for relief, whether relief can be claimed where work has been contracted between companies, or whether the company qualifies for exemption from the PAYE and National Insurance contributions cap.
This is not the same as submitting an R&D tax relief claim. Even where assurance is granted, the company must still follow the normal steps to claim R&D tax relief through its Company Tax Return and comply with the relevant claim requirements.
How does Targeted Advance Assurance differ from the existing R&D Advance Assurance scheme?
The existing full claim Advance Assurance scheme remains available. This is aimed at SMEs making their first R&D tax relief claim and, where assurance is agreed, it can apply to the company’s first three accounting periods. By contrast, the new Targeted Advance Assurance pilot is more focused. It is not designed to cover the whole claim. Instead, it allows SMEs to seek HMRC’s view on specific areas of uncertainty within a claim.
This distinction is important. The new process should not be presented as a replacement for Advance Assurance. It is a pilot running alongside the existing scheme, with HMRC using it to test demand, understand which areas of claims businesses most value assurance on, and assess the resource required to deliver a targeted advance assurance service.
Who can apply for Targeted Advance Assurance?
The new Targeted Advance Assurance pilot is available to SMEs that are carrying out, or planning to carry out, R&D in the accounting period for which assurance is being requested. To apply, the company must not yet have claimed R&D tax relief for that accounting period. It must also not have already received assurance on the same two areas of R&D work or the same project for that period.
HMRC has confirmed that Targeted Advance Assurance is not available to large companies, companies seeking assurance on three or more areas of a claim, or companies that have applied for full claim advance assurance for the same period. It is also unavailable where the company, or a connected person, has entered into a DOTAS arrangement, been categorised as a Corporate Serious Defaulter, or has an open enquiry into a Corporation Tax return.
What information is needed for a Targeted Advance Assurance application?
Before applying, companies should gather the relevant details in advance. HMRC’s online form cannot be saved part-way through, and attachments cannot be added.
The information required includes the company registration number, the project start date, contact details for the competent professional and a senior officer of the company, and key project details. These include an overview of the project, the relevant accounting period, forecasted expenditure, project duration and the type of records held.
If overseas expenditure is one of the areas on which assurance is being requested, the company must also provide information explaining why it believes that expenditure qualifies for relief.
How do companies apply for HMRC Targeted Advance Assurance?
Applications are made online using HMRC’s Targeted Advance Assurance form. The application can be submitted by an officer of the company, an R&D adviser, or an agent acting on the company’s behalf. Where an agent is used, they must have the appropriate authorisation in place.
Companies can make up to two applications for assurance. Each application can only cover one project and one area of R&D relief. If a company wants assurance on another project or another area, a separate application must be submitted.
What happens after submitting a Targeted Advance Assurance application?
HMRC says it will aim to process applications within 40 calendar days, provided that full and accurate information has been supplied. HMRC may contact the company or adviser if it has questions about the application.
If assurance is granted, HMRC will send a letter confirming that decision based on the information provided. The letter will also explain the company’s responsibilities and what happens if the R&D activities change. HMRC may also ask companies for feedback about their experience of being on the pilot.
If assurance is not granted, HMRC will send a letter explaining its decision. HMRC has confirmed that the decision cannot be appealed and that the company cannot apply for advance assurance again for the same matter. However, if the company still believes it is entitled to R&D tax relief, it can still submit a claim through its Company Tax Return, although HMRC strongly advises companies to check the conditions carefully in the area that has been declined.
Matthew Jones
Managing Director
Matthew Jones, LimestoneGrey’s Managing Director, commented:
‘The previous Advance Assurance process was not always fit for purpose and, in practice, it was not widely used by the companies it was designed to support. HMRC’s own consultation response recognised that only a small proportion of respondents had used the existing scheme, with concerns raised around restrictive eligibility criteria, inflexibility and turnaround times.
The introduction of Targeted Advance Assurance is a sensible step forward, but it should be viewed in context. This is a pilot, not a replacement for the existing Advance Assurance scheme, and its value will depend on how effectively it works in practice.
It will be interesting to see how HMRC reviews the success of the pilot over the 12-month period, particularly in relation to uptake, user feedback, processing times and whether companies feel the process gives them meaningful clarity before submitting their claims. If the pilot helps genuine R&D claimants better understand HMRC’s position on complex areas of a claim, that would be a positive development.’
What should companies do before applying for R&D Advance Assurance?
The new Targeted Advance Assurance pilot may be useful for SMEs that are preparing an R&D tax relief claim and have a specific area of uncertainty they want HMRC to consider before submission. However, companies should approach the process carefully. HMRC has made clear that incomplete applications may be rejected, and that assurance is based on the information provided. Businesses should therefore ensure that their project details, technical explanation, expenditure position and supporting records are carefully reviewed before applying.
Companies should also consider whether Targeted Advance Assurance is the right route for them, or whether the existing full claim Advance Assurance process is more appropriate. The existing scheme remains open for eligible first-time SME claimants, while the new pilot is designed to address specific areas of uncertainty within a claim.
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If you would like to discuss the suitability of Targeted Advanced Assurance for you company, please get in touch to speak to our team.
