HMRC have introduced a targeted advance assurance service for Research and Development (R&D) tax relief claims. The service, which is a pilot, aims to provide Small and Medium-sized Enterprises (SMEs) with clarity on complex or high-risk areas before a claim is made.
The new targeted scheme is open to any SME wishing to obtain HMRC’s assurance in any of the following areas:
- Whether the project meets the definition of R&D for tax purposes.
- Whether overseas expenditure qualifies for relief.
- Whether the company can claim R&D relief where work is contracted by one company to another.
- Whether the company qualifies for exemption from the PAYE and National Insurance contributions cap.
The scheme will run alongside the existing full claim advance assurance service, which is only available to first-time claimants.
