New R&D targeted advance assurance scheme

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.

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