HMRC’s R&D Advance Clearances Consultation – Our Response and What Businesses Should Know

HMRC recently asked for views on creating a expanded clearance process for R&D tax relief. The aim is to give companies more certainty before they submit a claim.

At James Cowper Kreston, we welcomed the consultation. Many of the businesses we support need clarity at the planning stage, especially when entering contracts, investing in new activity, or working with third parties. A well-designed clearance process could make a real difference.

Why the current system does not work

There is already an advance assurance system, but it only applies to first-time claimants. In practice, this excludes most businesses. Even those that are eligible often see little practical benefit.

This leaves a gap for companies carrying out complex or high-value R&D. They need confidence in how HMRC will treat their claims before making commercial decisions.

What we told HMRC

In our response, we highlighted four key points:

• Widen the scope – The system should not be limited to new claimants. It should be open to companies with complex or high-risk R&D activity where certainty would be valuable.
• Choose the right time – Clearance should take place before a claim is submitted. This would help with planning, budgeting, and decision-making at the right stage.
• Charge reasonably – If a fee is to be charged it should be set at a level to help avoid misuse of the process but must not discourage genuine businesses from using it.
• Focus on real risks – Clearance should address areas where rules are often misunderstood. These include overseas costs, contracting arrangements, and the boundaries of what qualifies as R&D.

What we want to see next

We want to see a clearance process that works in practice, not just on paper. That includes:

• A fairer and more practical eligibility model.
• Clear and timely decisions that give businesses confidence.
• Guidance that reflects how R&D is carried out in different sectors.
• Support for strategic planning, not just compliance checks.

Sam Swansborough, R&D Tax Director, commented: “We regularly support businesses making investment decisions where R&D tax relief is a key factor. A clearance process that gives early certainty, particularly for complex or collaborative projects, would help businesses plan more confidently. It would also encourage a more constructive relationship with HMRC, which is something we fully support.”

What this means for your business

If your business carries out R&D, especially where work involves significant third-party input or complex project structures, this proposed clearance process could help reduce risk and improve planning. While the system is still in development, we are closely involved and ready to support clients through the changes.

If you would like to understand how advance clearances could support your R&D activity or reduce claim uncertainty, get in touch with our team.