Apply for targeted advance assurance on up to 2 areas of your Research and Development (R&D) tax relief claim
Ask HMRC for assurance on particular areas of your Research and Development (R&D) tax relief claim, if you’re a small or medium-sized enterprise (SME).
The targeted advance assurance process (also known as ‘the advance assurance pilot’) gives eligible small or medium-sized enterprises (SMEs) clarity on up to 2 specific complex or high risk areas of a Research and Development (R&D) tax relief claim.
Who can apply
You can apply for the targeted advance assurance process if your company:
- is a small or medium-sized enterprise (SME)
- is carrying out R&D, or is planning to carry out R&D in the accounting period assurance is being requested for
- has not yet claimed R&D tax relief for the period you are requesting advance assurance for
- has not already received assurance on the 2 areas of your R&D work or project for the same period
You can complete the application yourself or your agent can apply for you.
Targeted advance assurance is not available:
- to large companies
- to companies seeking assurance on 3 or more areas of their R&D claim
- to companies who’ve applied for full claim advance assurance for the same period
- where companies or any connected person (as defined in the Corporation Tax Act 2009) have:
- entered into a disclosable Tax Avoidance Scheme (DOTAS)
- been categorised as a Corporate Serious Defaulter
- got an open enquiry into a Corporation Tax return
If you want to get assurance on your full claim, you may be able to apply for full claim advance assurance on your first R&D tax relief claim.
What you need to apply
Before you apply, make sure you have:
- your Company Registration Number (CRN)
- the start date of the project
- contact details — including the details of the competent professional and senior officer within the company
- project details — including:
- an overview of the project
- the start date of the accounting period you intend to make the R&D claim for
- forecasted expenditure
- the project duration
- the type of records held
- information about why you believe you can claim expenditure (if overseas expenditure is one of the areas you’re asking about)
You can make up to 2 applications for assurance. Each application can only include one project and one area of R&D relief. If you want assurance on another project or area, you’ll need to submit a separate application. The areas of R&D relief you can request assurance on are:
- whether the project meets the definition of R&D for tax purposes — read about what R&D tax relief is
- whether overseas expenditure qualifies for relief — read about what overseas expenditure is (CIRD150000)
- whether the company can claim R&D relief where work is contracted by one company to another (CIRD160000)
- whether the company qualifies for exemption from the PAYE and National Insurance contributions cap (CIRD140000)
If you do not provide all the information needed, your assurance request may be rejected.
How to apply
An application can be submitted by an agent, R&D adviser or officer within the company.
If you use an agent they must have the appropriate authorisation. For example:
- form 64-8 if you are authorising an agent
- form COMP1 if you want HMRC to deal directly with your tax adviser or agent in relation to a compliance check
If you would like to communicate with us by email will need to provide email consent. Read about corresponding with HMRC using email.
Get all of your information together before you start. You will fill this form in online and you cannot save your progress. You will not be able to add any attachments.
Apply for targeted advance assurance
After you’ve applied
We will aim to process your application within 40 calendar days of you making the application, however this is subject to full and accurate information having been provided. We may get in touch if we have any questions.
If advance assurance is granted
We will send a letter confirming that advance assurance has been granted based on the information provided. The letter will also explain the company’s responsibilities and what happens if the R&D activities change.
We may also ask you for feedback about your experience of being on the targeted advance assurance pilot.
If advance assurance is not granted
We’ll send you a letter explaining why we’ve made this decision. You cannot appeal it or apply for advance assurance again.
If you still think you’re due R&D tax relief you can submit a claim in your Company Tax Return. We strongly advise you check the conditions on claiming in the area that has been declined.
What your company needs to do next
Asking for advance assurance is not the same as making an R&D tax relief claim.
Check the steps you need to take to correctly claim R&D tax relief.
These requirements apply even if the company has applied for, or been granted, advance assurance.