Research and Development tax relief

Don’t dismiss claiming Research and Development tax relief. Know you qualify before you start.

Advance Assurance provides businesses with the option to apply in advance to claim back Research and Development tax relief.

Claiming R&D tax relief is so often overlooked by companies who dismiss it. Many think it will be a lot of hassle for little result. But as an example a company R&D tax claim can achieve a cash refund of 25.3% of the amount spent on R&D work. I am sure you agree, that is a number not to be ignored!

To further encourage innovation, HMRC introduced Advance Assurance to help companies benefit from Research and Development (R&D) tax relief.

If your company invests in R&D you could qualify for Advance Assurance. This means that for the first three accounting periods of claiming for R&D tax relief after providing initial information, HMRC will allow the tax relief claim without further enquiries.

When should you apply?

It is a good idea to have this in mind right at the start of your R&D project. You should do this before submitting your first R&D tax relief claim.


HMRC have three stipulations on companies claiming their Advance Assurance:

  1. Your company hasn’t claimed for R&D tax relief before;
  2. Your annual turnover is £2 million or less;
  3. You employ less than 50 members of staff.

Don’t forget R&D tax relief is also available to start ups too, there’s no minimum on the length of time a company has been trading.

What should you do?

We can apply for Advance Assurance on your behalf, HMRC will want to speak with your R&D main point of contact to understand your project but let us take the strain out of the paperwork. We can then review your tax claim for you and make recommendations to maximise your tax credit.

You can still of course apply for R&D tax relief without using the Advance Assurance route, this is actioned after you have completed your R&D work, but you will have to wait and see if HRMC queries your application, and in some cases HMRC may determine the project does not qualify.

How we can help you:
  • Identify whether projects you are undertaking could potentially qualify
  • Analyse your accounting records to advise you how much will qualify
  • Prepare your claim and supporting documentation to meet the HMRC requirements
For more information

If you have R&D plans, please speak to Linda Warner to discuss the possibility of claiming this valuable tax relief, or call us on:

01483 416232