UK: Voluntary pilot R&D advance assurance scheme for SMEs
Runs through May 2027
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