Prime Numbers

Thinking about making an R&D tax relief claim?

HMRC has introduced a pilot advance assurance scheme for SMEs, giving eligible businesses the chance to ask HMRC for a view on certain parts of a proposed R&D claim before it is submitted.

This could be especially useful where there is uncertainty around the more complex areas of a claim, such as whether the work being carried out meets the definition of R&D.

It is important to note that the scheme does not approve the whole claim. However, it can help businesses gain more clarity on specific points and reduce the risk of issues arising later.

For businesses investing in new products, software, systems, processes or technical improvements, this could be a valuable opportunity to get key areas reviewed earlier in the process.

The pilot launched in May 2026 and is expected to run for a limited time.

If your business is innovating and you are unsure whether R&D relief could apply, it may be worth having that conversation sooner rather than later.

The government has announced an important change to inheritance tax planning for business and agricultural assets.

From April 2026,

- A new £2.5 million allowance will cap how much business and agricultural property qualifies for 100% relief

- Values above this are expected to receive 50% relief instead

- Allowances can be transferred between spouses and civil partners

This change will affect fewer estates than originally planned, but it’s still significant for anyone with valuable business or farming assets — especially where trusts or succession planning are involved.

Early review gives more flexibility than last-minute decisions.

This is one of the most common questions we're seeing right now. And it's a fair one.

A quarterly MTD update is not a tax return. Let's be clear about that.

It's a summary of your income and expenses for those three months, submitted digitally to HMRC through approved software. No tax is calculated at that point. No payment is due. It's a reporting update, not a bill.

Your four deadlines for the 2026/27 tax year are 7 August, 7 November, 7 February, and 7 May.
The actual tax calculation still happens at year end, with your final annual declaration due 31 January 2027.

So, if the quarterly updates feel overwhelming, reframe them. They're just regular snapshots of what your business is already doing. If your records are kept up to date, each one should take minutes, not hours.

The real question is: are your records actually up to date?

If the honest answer is no, that's exactly where we start.