Quick answer: Advance Assurance is a voluntary HMRC service giving eligible first-time small company claimants written confirmation that their R&D activities qualify for tax relief. Once granted, HMRC will not enquire into the R&D element of the claim for the next three accounting periods, provided the activity and costs stay materially the same.
What is Advance Assurance?
Advance Assurance is a voluntary scheme operated by HMRC that gives eligible first-time small company claimants written confirmation that their research and development activities qualify for R&D tax relief. Once granted, HMRC will not enquire into the R&D element of the claim for the next three accounting periods, provided the underlying activity and cost profile remains materially the same as that agreed in the assurance application.
How does HMRC operate the Advance Assurance scheme?
HMRC documents the scheme at CIRD83200 and in the online guidance page Apply for Advance Assurance for a claim for R&D tax relief. The service is only available to companies with turnover under £2 million and fewer than 50 employees that have not previously claimed R&D relief. The application is made on a dedicated form and is usually decided within a few weeks of submission. HMRC may request a telephone discussion with the competent professional responsible for the R&D.
What does Advance Assurance look like in practice?
A two-year-old AI start-up with 12 staff and £500,000 turnover applies for Advance Assurance before filing its first claim. HMRC confirms the projects qualify. The company and its specialist adviser proceed to file claims for the current and next two accounting periods without fear of an enquiry on the qualifying R&D element, provided the work stays within the scope described.
Related terms
Frequently Asked Questions
It is a voluntary HMRC scheme giving eligible first-time small company claimants written confirmation that their research and development activities qualify for R&D tax relief. Companies wanting a quick indicative check before applying can use the free eligibility calculator.
The service is only available to companies with turnover under £2 million and fewer than 50 employees that have not previously claimed R&D tax relief.
Once granted, HMRC will not enquire into the R&D element of the claim for the next three accounting periods, provided the underlying activity and cost profile stays materially the same as described in the application.
Yes. HMRC may request a telephone discussion with the competent professional responsible for the R&D before deciding the application, which is usually decided within a few weeks of submission.
Yes. Advance Assurance was retained when the merged scheme replaced the separate SME and RDEC schemes from 1 April 2024. The eligibility test (turnover under £2 million, fewer than 50 employees, no previous R&D claim) and the three-accounting-period protection window are unchanged by the merger.
The three-period protection applies only while the underlying R&D activity and cost profile stay materially consistent with what was described in the application. If the company's R&D moves into substantially different areas, or the claim size changes materially, HMRC's assurance may no longer cover the new position, and it is worth checking with HMRC or a specialist adviser before relying on it.