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UK: Voluntary pilot R&D advance assurance scheme for SMEs

Runs through May 2027

May 28, 2026

Following consultation and an announcement in the Autumn 2025 Budget, HMRC launched a voluntary pilot advance assurance scheme for small and medium-sized enterprises (SMEs) (i.e., businesses with fewer than 500 employees and either turnover of less than €100 million or assets of less than €86 million) making research and development (R&D) claims, that will run to May 2027.

SMEs may seek assurance regarding up to a maximum of two of the following four areas:

  • Whether a project meets the definition of R&D for tax purposes
  • Whether overseas R&D expenditure on externally provided workers or contracted out R&D qualifies
  • Whether the company can claim R&D incentives where one company contracts R&D to another company
  • Whether the company qualifies for exemption from the PAYE/NIC cap

Read a May 2026 report prepared by the KPMG member firm in the UK

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