Advance Assurance for Research and Development (R&D) tax relief claims is available to small companies making their first R&D claim. To be eligible, the companies must also have an annual turnover of less than £2million and less than 50 employees. There is no requirement to apply for Advance Assurance but by doing so applicants can ensure they comply with the R&D tax relief conditions.
In order to apply for Advance Assurance the company or agent will need 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. If the requirements for Advance Assurance have not been met, HMRC will write to the company providing additional information.
An application for Advance Assurance can be made online or by post. Please note that the postal address on the form has recently been updated.