Advance Assurance is a voluntary scheme offered by HMRC that provides early certainty on R&D tax relief eligibility. If granted, HMRC agrees in advance to accept R&D claims for a company’s first three accounting periods, provided claims align with the approved application.
Advance Assurance does not replace the normal claims process. Companies must still submit full R&D claims in each period.
Who Can Apply?
Advance Assurance is available to companies that:
- Have turnover below £2m and fewer than 50 employees
- Are claiming R&D tax relief for the first time
- Are undertaking, or planning to undertake, qualifying R&D
- Are not part of a group where another company has already claimed
Companies involved in disclosable tax avoidance schemes or classed as serious defaulters are excluded.
The Application Process
Applicants must provide:
- Company and accounting details
- A clear explanation of R&D projects, including uncertainties and costs
- A named technical contact with direct knowledge of the work
Applications are submitted online via Government Gateway, followed by a discussion with HMRC before a written decision is issued.
Is Advance Assurance Still Relevant?
Use of Advance Assurance has declined significantly. Applications fell from 205 in 2018–19 to just 86 in 2023–24, alongside a sharp drop in acceptance rates. This raises questions about whether the scheme still meets the needs of modern R&D-driven businesses.
A government consultation expected in Spring 2025 may result in reform, expansion, or replacement of the scheme. This review comes against the backdrop of wider changes, including the merged RDEC regime, ERIS, and increased compliance requirements.
Given the growing complexity of R&D tax relief, professional advice is increasingly important when deciding whether Advance Assurance is appropriate.
