Well we’ve made it to July – the height of summer is officially here! The sun is (hopefully) shining, the barbeques are out and many of you are heading off on a well-earned holiday or simply enjoying some slower, sunnier days. Whether you’re jetting off somewhere exotic, spending afternoons in the garden or just relishing the longer evenings with a cold drink in hand, this time of year is all about unwinding, recharging and maybe even switching off the email notifications (just for a little while).
The world of accountancy and taxation keeps moving and staying one step ahead can really make a difference. Whether it’s upcoming deadlines, shifting policies, fresh legislation or updates from HMRC and Companies House, it can feel like a lot to keep up with but that’s exactly why we’re here – to make matters clearer, easier and more manageable for you.
Research & Development (R&D) Tax Credits
Did you know we offer a comprehensive end-to-end R&D Tax Credits service? Designed to support innovative companies, this valuable scheme – administered by HMRC – enables eligible companies to claim tax relief for qualifying research & development work.
To meet the criteria, companies must demonstrate that their projects aim to achieve an overall knowledge or capability in a field of science or technology. Claims are submitted as part of your company’s tax return.
Unsure if your work qualifies for R&D tax relief? Check out the official GOV.UK guidance.
Celebrating Excellence in R&D
We’re proud to share that our MD Matt has recently completed a 12 week R&D course with The R&D Community. This is the industry’s first certification in R&D tax relief. The course concluded with two challenging exams, each requiring a minimum pass mark of 75%. Matt achieved an impressive average score of 88%, earning a strong pass and further reinforcing his expertise in the ever evolving R&D landscape.
This accomplishment highlights our continued commitment to providing the highest standard of support for both new and existing clients navigating the complexities of R&D claims.
To continually enhance our R&D services and stay aligned with the latest legislation, we are proud registered members of The R&D Community. Their support helps us to:
- Expand our understanding of R&D schemes
- Stay current with legislative changes
- Strengthen our expertise through ongoing R&D tax relief training
To learn more about research & development, please visit our website and discover how our R&D Tax Credits Service is benefitting our clients.
Tax-Free Childcare Accounts
If you have children under the age of 12 attending nursery, after-school clubs, play schemes, nannies or childminders, or you’re planning to send them to a summer camp, it’s worth considering a tax-free childcare account.
This government backed scheme adds 25% to the amount you save, up to a maximum top-up of £2,000 per child per year (or £4,000 for disabled children). For example, if you deposit £8,000 into the account, it will be topped up to £10,000.
The funds in the account can only be used to pay Ofsted-registered childcare providers, giving you flexibility and peace of mind when covering essential care costs. Important, anyone (not just the child’s parents) can contribute to the account. Grandparents, aunts, uncles and friends are all able to make payments. Adopted children are eligible but foster children are not.
Despite its benefits, many eligible families have yet to open an account. If you’re an employer, you can play a key role in raising awareness by encouraging your staff to explore this valuable support.
Please note – parents are not eligible if either earns more than £100,000 in adjusted net income during the current tax year. To find out more or to set up an account, visit the GOV.UK Tax-Free Childcare Guide.
Making Tax Digital for Income Tax Self-Assessment is Coming
If you’re a sole trader or landlord and your 2023/24 self-assessment tax return showed income over or close to £50,000, you may soon receive an official letter from HM Revenue & Customs (HMRC). Inside will be important information about Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) – a significant change in how self-employed individuals and landlords report their income.
What’s Changing?
Under the new rules, instead of filing one yearly tax return, you’ll be required to:
- Keep digital records of income and expenses using MTD-compatible software
- Submit quarterly updates to HMRC (via software) within one month after each quarter ends
- Submit a final year end statement – similar to the current tax return (through the same software)
Paper records will no longer be accepted by HMRC. Digital compliance will be mandatory.
Received a Letter? Don’t Worry, We’re Here to Help!
An HMRC letter can feel daunting but there’s no need to panic. The good news for Clear Vision clients is that we’re already preparing for MTD for ITSA – and we’re here to support you, every step of the way. As your trusted tax agent, we can:
- Manage your MTD registration directly with HMRC
- Help you set up MTD-compliant software, such as Xero (if you aren’t using this already)
- Provide ongoing support to ensure timely, accurate submissions
Please note, HMRC will not automatically enrol you into MTD for ITSA – action will be required. Also, not receiving a letter doesn’t mean you’re exempt from the new rules. To see if you may qualify for an exemption, refer to the official GOV.UK Guidance.
How Should You Prepare?
Although April 2026 may feel a long way off, now is the ideal time to start planning. You should begin considering whether you will:
- Complete and submit the quarterly updates yourself using digital accounting software
- Appoint Clear Vision to manage the quarterly submissions and compliance on your behalf
If you’re unsure whether these changes apply to you, please contact us for clarification.
How We Can Help
If you have specific questions about any matters within this month’s newsletter and how they may affect you or your business, do please get in touch with us.
At Clear Vision, we’re always eager to guide and assist our clients – how ever you need us to support you through your journey as a business owner, we’re here for you!
This month’s Clear Vision positive thought:
“Success doesn’t often come with a roar, it comes with the whispering words you say to yourself each day.”