Understanding Advance Assurance and Clearance Support in R&D Tax Relief

Research and Development (R&D) tax relief remains a key incentive for innovative small and medium-sized enterprises (SMEs) in the UK. HMRC’s advance assurance scheme offers eligible businesses the opportunity to obtain early confirmation that their R&D projects qualify for relief, helping to mitigate the risk of compliance enquiries and delays in claim acceptance.

Alongside this, HMRC is consulting on a new advance clearance scheme aimed at providing even greater certainty for more complex or higher-risk claims, reinforcing the government’s commitment to supporting genuine innovation while enhancing compliance.

Why We Submit Advance Assurance for New Clients

Due to an increase in small R&D claims, many firms—including ours—are proactively submitting advance assurance applications for new clients. This scheme, designed for small and medium-sized enterprises (SMEs) claiming R&D tax relief for the first time, provides a valuable guarantee from HMRC that their claims will be accepted without an enquiry for up to three accounting periods, provided claims stay consistent with the initial application.

Advance assurance simplifies the claims process and mitigates the risk of costly and delaying HMRC enquiries by securing upfront clarity.

You can apply for advance assurance if you’re a small and medium-sized enterprise (SME) and:

• it’s your first-time claiming R&D tax relief
  
  
• your company has a turnover below £2 million and less than 50 employees
  
  
• you’re planning to carry out R&D
  
  
• you’ve already carried out R&D and have not claimed R&D tax relief yet
  
  
• you’re part of a group, and none of the companies linked to you have previously claimed R&D tax relief
  
  

What Is Advance Clearance and What to Expect?

In March 2025, HMRC launched a consultation on a new advance clearance scheme aimed at supplementing advance assurance. This proposed system would allow companies to obtain pre-approval on specific R&D projects or expenditures before submitting claims, providing an additional layer of certainty particularly useful for complex or borderline cases.

The government intends to reduce error and fraud, improve compliance, and streamline claim processing through these reforms. While advance assurance is currently voluntary and limited to first-time claimants, advance clearance may introduce mandatory elements, especially for higher-risk claims, sectors with historically high error rates, or claims above certain thresholds.

How Our Fixed-Fee Service Supports Your Business

Understanding the complexities and growing compliance requirements around R&D tax relief can be daunting. To assist businesses in confidently navigating these processes, we offer a small fixed-fee service to help:

• Prepare and submit advance assurance applications accurately and comprehensively.
  
  
• Guide companies through the advance clearance process once it becomes available.
  
  
• Ensure R&D claims are robust, clearly documented, and aligned with HMRC expectations.
  
  

Why Advance Assurance Matters: 3 Key Benefits for Your Business

1. Guaranteed Certainty for First-Time Claimants
   Advance Assurance gives you HMRC’s upfront confirmation that your R&D activities qualify for tax relief. No surprises, no disputes—just peace of mind and confidence to invest in innovation.
2. Coverage for Multiple Years
   Once approved, Advance Assurance typically applies to the first three accounting periods in which you make an R&D claim. This means long-term security and simplified compliance as your business grows.
3. Enhanced Credibility with Investors and Stakeholders
   HMRC’s Advance Assurance signals that your company is officially recognized as innovative. This strengthens your position when seeking funding, partnerships, or investor confidence.
   

Final Thoughts

The evolving R&D tax relief landscape shows a clear trend towards enhanced transparency and stricter compliance, which ultimately benefits truly innovative companies by shielding them from HMRC disputes. Through advance assurance and next-generation clearance schemes, the government is supporting SMEs to innovate more confidently and claim relief with peace of mind.

If your business is planning or already undertaking R&D, contact us using the form at the bottom of this page to learn how our fixed-fee advance assurance and clearance services can help safeguard your claims and unlock valuable tax incentives. 

To view a full list of our R&D Tax Relief Services, visit this page.