- Following recent reform of the R&D tax credit regimes, at Spring Statement 2025 the government published a consultation document on widening the use of advance clearances for R&D tax reliefs.
- The consultation considered options for mandatory assurance for high-risk cases, as well as voluntary clearances to provide certainty to businesses.
- At Budget 2025, the government announced that it will launch a limited pilot of a new targeted advance assurance service for R&D tax relief.
- On 18 May 2026, HMRC launched the pilot of the new targeted R&D tax relief advance assurance service for small and medium-sized enterprises (SMEs). It will allow eligible SMEs to apply for assurance on up to two specific aspects of their R&D claims, such as whether a project meets the definition of R&D for tax purposes or whether overseas expenditure qualifies for relief.
- The pilot will run alongside the existing full claim advance assurance for eligible first-time claimants, covering up to three accounting periods.
- The pilot will test demand and the resource required for a more accessible and focused assurance service.
- On 23 June 2026, HMRC announced that it will amend the corporation tax quarterly payments (QIPs) threshold to prevent companies being brought within QIPs solely as a result of claiming R&D expenditure credits.
- Timing: the targeted advance assurance pilot launched on 18 May 2026 and will run until May 2027. The changes to the QIPs threshold will apply from April 2027.
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