HMRC’s Targeted Advance Assurance pilot lets eligible SMEs ask HMRC for its view on up to two specific, complex or high-risk areas of an R&D tax relief claim before the claim is filed. Guidance was published on 18 May 2026. The pilot does not replace the existing full-claim advance assurance scheme, which continues to run alongside it for eligible first-time claimants.
For companies with a genuinely uncertain point in an upcoming claim, this is a route to an HMRC view before the money is at stake, and it is worth understanding properly.
What can you ask HMRC to look at?
Up to two specific areas of uncertainty in a claim. HMRC’s examples map closely onto the questions that generate the most disputes:
- 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
- whether the company qualifies for exemption from the PAYE and NIC cap under the merged scheme
Assurance is not a claim. Even where HMRC grants it, the company still claims through its Company Tax Return in the normal way, with all the usual requirements.
How is this different from existing advance assurance?
The existing scheme covers a first-time SME claimant’s whole claim and, where agreed, applies to the company’s first three accounting periods. The pilot is narrower and sharper: named areas of uncertainty within a claim, for companies that may have claimed before. HMRC is using it to test demand, learn which areas businesses most want assurance on, and gauge the resource a full service would need. The pilot grew out of the 2025 consultation on advance assurance, which we covered, along with the consultation’s outcome, in our article on the advance assurance consultation.
Who can apply?
SMEs carrying out, or planning, R&D in the accounting period concerned, provided they have not yet claimed for that period and have not already received assurance on the same areas or project. It is not open to large companies, to requests covering three or more areas, or to 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 a DOTAS arrangement, has been categorised as a Corporate Serious Defaulter, or has an open Corporation Tax enquiry.
What does the application involve?
An online form, submitted by an officer of the company or an authorised agent. It cannot be saved part-way through and attachments cannot be added, so gather everything first: company registration number, project start date, contact details for the competent professional and a senior officer, a project overview, the accounting period, forecast expenditure, project duration and the type of records held. If overseas expenditure is one of your two areas, you must also explain why you believe it qualifies.
Each application covers one project and one area of relief, and a company can make up to two applications. HMRC aims to respond within 40 calendar days where the information is complete.
What happens if HMRC says no?
The decision cannot be appealed, and you cannot reapply on the same matter. You can still claim through your tax return if you believe you are entitled, but you would be filing against a stated HMRC view, which raises the stakes of an enquiry considerably. That is the real strategic question with this pilot: a declined application is information HMRC keeps.
Matthew Jones 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. 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. 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.”
Should your company use it?
Use it where you have a genuine, well-documented uncertainty and the answer changes what you would claim; think a medtech company with overseas clinical work, or a contractor unsure who holds the claim. Do not use it as a substitute for preparation: incomplete applications may be rejected, and assurance binds only to the facts you present.
If you are weighing up an application, talk it through with a chartered adviser first. Framing the question well is most of the value.
Sources
- Apply for targeted advance assurance — how the targeted advance assurance pilot works and who can apply.
- Advance clearances: summary of responses — the consultation outcome that led to the pilot.
This article describes the rules as they stood at the review date above. The rules change: for the current position, start with our guides or talk to us.
