Advance assurance for R&D tax claims
Advance assurance for small companies that claim Research and Development (R&D) tax relief was introduced in November 2015. This measure makes it easier for small businesses investing in research and development to claim tax relief.
Advance assurance is available to companies who haven’t claimed R&D before, have an annual turnover of less than £2million and less than 50 employees. R&D credits are a Corporation Tax relief that were introduced to encourage innovation and enterprise within the UK economy. Small and medium-sized enterprise can claim R&D tax credits of 230% for expenditure incurred on or after 1 April 2015. There are different rules for large companies.
In order to apply for advance assurance, the company or agent needs to provide the following information to HMRC:
- company accounts
- company registration documents (from Companies House)
- HMRC correspondence
- previous company tax returns (not needed for new companies)
- the name of a main contact with a direct knowledge of the R&D process.
- basic company information
- detailed information on company’s R&D activities.
Successful applicants for the scheme will receive confirmation that HMRC will not open any enquiries into their claims for the first three accounting periods. HMRC will also write to the business to confirm what changes can be made to R&D credits as part of an existing agreement.
Planning note:
The introduction of advance assurance by HMRC has helped and encouraged many small businesses to take the plunge and make R&D claims. Not having to worry that a valid claim will be rejected provides much needed security for smaller businesses making R&D claims.
If you feel that you may be able to claim we can help with the application process.
Latest news
- Tax Diary May/June 2024
18/04/2024 - More...
1 May 2024 - Due date for corporation tax due for the year ended 30 July 2023. 19 May 2024 - PAYE and NIC deductions
- Payrolling employee expenses and benefits
18/04/2024 - More...
Employers can register on a voluntary basis (before the start of the tax year) to report and account for tax on certain
- Changes to Scottish Income Tax rates 2024-25
18/04/2024 - More...
A reminder of the changes to Scottish Income Tax rates for the 2024-25 tax year. It was announced as part of the
Search archive
Newsletter
With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!