Advance Assurance
Reduce Risk with HMRC’s Advance Assurance for SMEs
If your company is applying for R&D tax relief for SMEs for the first time, it could qualify for Advance Assurance. This voluntary HMRC scheme allows SMEs to get confirmation in advance that their activities qualify for R&D tax credits, helping reduce the risk of enquiry.
The main advantage of Advance Assurance is that it gives eligible companies a guarantee their R&D claims will be accepted without an enquiry, provided they are:
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In Line With What Was Discussed and Agreed
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Claimed Within the First Three Accounting Periods
SMEs also benefit from access to HMRC R&D specialists who can guide them through the process and help clarify any questions about the relief.
However, your company does not need Advance Assurance before applying for R&D tax relief—but it can offer peace of mind for first-time claimants.
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When to Apply for Advance Assurance
Advance Assurance can be applied for before or after your R&D activities, but the application must be made before submitting your first R&D tax relief claim to HMRC.
Eligibility Criteria for Advance Assurance
To be eligible for Advance Assurance for R&D tax credits, your company must:
✅ Be an SME
✅ Be planning to carry out R&D or have already done so
✅ Have made no previous claims for R&D tax relief
✅ Have annual turnover of £2 million or less
✅ Employ fewer than 50 staff
✅ Not be part of a group, and no linked companies have claimed R&D relief before
✅ Not be a serious defaulter
✅ Not have used any schemes under the Disclosure of Tax Avoidance Schemes (DOTAS) regime
Claim Notification Requirements
You must notify HMRC of your intention to claim R&D tax relief by completing a claim notification form, even if you've applied for Advance Assurance but haven't yet submitted it. If you're claiming for R&D tax relief or R&D expenditure credit for accounting periods beginning on or after 1 April 2023, you must complete a claim notification form if:
- You’re claiming for the first time.
- Your last claim was submitted more than 3 years before the end of the current claim notification period.
While it’s possible to apply for Advance Assurance yourself, we recommend speaking with our experts to understand how we can simplify the process, ensure compliance, and add value to your claim.
📞 Call us on 0208 037 1030 or fill in the enquiry form on this page to get started.
Innovation Tax Relief Service Team
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