Mundy & Co.

Mundy & Co. Licensed Accountant with over 25 years accountancy experience. Professional, friendly service. Providing expertise for individuals and businesses.

HMRC introduces targeted advance assurance service for R&D claimsOriginally proposed in last autumn’s Budget, HM Revenue...
28/05/2026

HMRC introduces targeted advance assurance service for R&D claims

Originally proposed in last autumn’s Budget, HM Revenue & Customs (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 businesses with clarity on complex or high-risk areas before they make a claim.

HMRC are now offering two types of advance assurance for R&D claims. The new service will run alongside the existing full claim advance assurance service.

Full claim advance assurance has not been popular and only applies to companies claiming R&D tax relief for the first time. However, targeted advance assurance is open to any eligible small or medium-sized enterprise (SME).

The pilot for this service will run until May 2027 and will help HMRC to test demand and decide which parts of the service are most useful to businesses.

Companies will now need to choose which advance assurance service they want to use. It is not possible to apply for both targeted and full claim advance assurance for the same period or project.

Under targeted advance assurance, companies can seek assurance on:

• Whether a project meets the definition of R&D for tax purposes.

• Whether overseas expenditure qualifies for relief.

• Whether R&D relief can be claimed where work is contracted by one company to another.

• Whether the exemption from the PAYE and National Insurance contributions cap applies.

Targeted advance assurance is, however, limited to providing assurance on a maximum of two areas of the R&D work or project for the same period.

An application can only include one project and one area of R&D relief. For companies seeking assurance on a second project or area, a second application must be submitted.

Requesting advance assurance is not the same as making a claim. A company will still need to make a claim in the usual way.

Relief on fuel duty and hauliers get road tax holiday• The government have announced some fuel duty and road tax changes...
27/05/2026

Relief on fuel duty and hauliers get road tax holiday

• The government have announced some fuel duty and road tax changes designed to help with the increased costs caused by the Middle East conflict.

• A 5p fuel duty cut has been in place since March 2022. The relief was due to end between September this year and March 2027. It has now been confirmed that the cut will be extended until the end of the year.

• Hauliers are being given a 12-month road tax holiday. The normal annual charge of £600 for a typical heavy lorry and £912 for the biggest vehicles will be reduced to £1 at the vehicle’s next road tax renewal.

• Fuel duty on red diesel will be cut by over a third until the end of the year. This will benefit farmers, rail freight and other red diesel users.

See: https://www.gov.uk/government/news/chancellor-protects-drivers-and-businesses-from-rising-fuel-costs

Mileage rate increased to 55p per mile and back-dated to April 2026.
22/05/2026

Mileage rate increased to 55p per mile and back-dated to April 2026.

Government commits to self-driving technology• The government has announced it has signed a new partnership with Wayve, ...
21/05/2026

Government commits to self-driving technology

• The government has announced it has signed a new partnership with Wayve, a British company that is developing self-driving vehicle technologies.

• The partnership will focus on shared research that will support the ongoing development and deployment of automated vehicles.

• It is hoped that the partnership will act as a catalyst for new investment, skilled jobs and long-term growth across the UK car industry.

• A Memorandum of Understanding sets out how the Department for Business and Trade and Wayve will collaborate on research helping to take self-driving vehicles from prototypes through to commercial reality.

See: https://www.gov.uk/government/news/government-and-wayve-sign-partnership-to-accelerate-britains-self-driving-future

April was a record month for tax return filingHM Revenue and Customs (HMRC) have reported that 298,905 people filed thei...
18/05/2026

April was a record month for tax return filing

HM Revenue and Customs (HMRC) have reported that 298,905 people filed their Self Assessment tax return in the first week of the tax year, with a record total of 737,891 returns being filed during the month of April 2026.

HMRC are highlighting several benefits to filing early, including:

• Getting a refund sooner if you are due one.

• Reducing stress by avoiding the pressure that comes from filing at the last minute.

• There is no need to pay tax early but knowing how much you owe ahead of time helps with budgeting.

• Any mistakes can be checked and corrected before the deadline.

• A processed tax return can be used as proof of income for mortgage and loan applications or benefit claims.

More than 12 million tax returns are due to be filed by 31 January 2027, so there are still plenty of returns to be filed yet.

If you would like help in preparing and filing your 2025/26 tax return, please do get in touch. We would be happy to help you!

See: https://www.gov.uk/government/news/298905-self-assessment-filers-quick-off-the-mark

Data law change relaxes consent rules for charitiesThe Information Commissioner's Office (ICO) has published final guida...
05/05/2026

Data law change relaxes consent rules for charities

The Information Commissioner's Office (ICO) has published final guidance on the new ‘charitable purposes soft opt-in’ provision introduced by the Data (Use and Access) Act 2025.

The provision means that charities can send direct marketing by electronic mail, including emails, texts and direct messages on social media, to people who have expressed an interest in or offered to support to an organisation’s charitable purpose, without needing to obtain consent first, providing strict requirements have been met.

The new guidance sets out how charities can use the provision and the safeguards they need to put in place.

As a result of the change, new opportunities may open up for the sector, unlocking new fundraising and supporter engagement opportunities.

Emily Keaney, Deputy Commissioner, Regulatory Policy at the ICO, said: “Our guidance is designed to help organisations use the charitable purposes soft opt-in with confidence, while making sure people’s rights remain protected. Used correctly, this provision can benefit both charities and the individuals who choose to support them.

To review the guidance, see: https://ico.org.uk/for-organisations/direct-marketing-and-privacy-and-electronic-communications/guidance-on-direct-marketing-using-electronic-mail/how-do-we-comply-with-the-pecr-electronic-mail-marketing-rules/

April 2026 Changes To The Construction Industry Scheme (CIS)As outlined in Autumn Budget 2025, several changes took plac...
29/04/2026

April 2026 Changes To The Construction Industry Scheme (CIS)

As outlined in Autumn Budget 2025, several changes took place on 6 April that may affect those who use the Construction Industry Scheme.

From April 2026, contractors are required by law to either:

• file a CIS return every month, including nil returns in months where they have not used a subcontractor; or

• inform HMRC in advance that they will not pay subcontractors that month by submitting an inactivity request.

From April 2026, with the nil filing requirement back in place, HMRC have reinstated a full CIS late filing penalty regime. If you file a late CIS return, a £100 fixed penalty will apply. You may also subsequently be charged:

• A second fixed penalty of £200 after two months.

• A tax-geared penalty at six months of a minimum of £300 or 5% of any liability which should have been shown on the return.

• A further tax-geared penalty at 12 months (The amount of this penalty will depend on why the return was late.)

In situations where a business makes or receives a payment they knew or should have known was connected to fraud, HMRC now have enhanced powers to immediately remove Gross Payment Status (GPS), assess for lost tax and charge a penalty of up to 30%. If GPS has been immediately removed, the time limit for reapplication is increased from one year to five years.

Are You Prepared for Cyber Threats?The National Cyber Security Centre (NCSC) has issued a call to action to business lea...
27/04/2026

Are You Prepared for Cyber Threats?

The National Cyber Security Centre (NCSC) has issued a call to action to business leaders to build resilience to severe cyber threats. The NCSC reports that their Annual Review 2025 shows a widening gap between the rising pace of cyber threats and the UK’s collective resilience.

While the call to action and accompanying guidance are aimed primarily at the leaders of large organisations, cyber threats continue to be a challenge faced by businesses of all sizes.

The NCSC advises that when a cyber incident happens, it is often too late to start working out what should be done and who will do it. Therefore, it can pay to get the business ready so that if a cyber-attack does happen, it is better able to continue operating through the disruption, as well as to recover as quickly as possible.

For example, you might consider questions like:

• If your website or computer network were taken out for a period, how would that affect your business?

• What adjustments do you need to make so your business can continue running?

The NCSC concludes that the organisations that fare best in severe cyber incidents are those that have put in place the steps needed to withstand and recover from disruption.

See: https://www.ncsc.gov.uk/blogs/preparing-for-severe-cyber-threat-why-leaders-must-act-now

Have You Received a Letter from HMRC About MTD?With Making Tax Digital (MTD) for Income Tax coming into force from 6 Apr...
20/04/2026

Have You Received a Letter from HMRC About MTD?

With Making Tax Digital (MTD) for Income Tax coming into force from 6 April 2026, HM Revenue & Customs (HMRC) have been writing to taxpayers over recent weeks to tell them that they are being mandated into the regime.

MTD became mandatory from 6 April 2026 for sole traders and landlords with a total turnover exceeding £50,000 in the 2025/25 tax year, unless an exemption applies. It involves keeping digital records and submitting quarterly updates to HMRC.

Some taxpayers may have only received their ‘mandation’ letter a few days before the tax year started.

If you have received a letter, and that was the first you knew about MTD requirements affecting your business, there is no need to panic.

The first MTD filing deadline will not be until 7 August 2026. So, you have time to sign up, decide which software to use and then begin to keep your accounting records digitally. If your digital records are up-to-date for the three months starting in April 2026 by the time you need to file the update, then there will be no problem meeting the deadline.

HMRC will not charge you a penalty for not signing up by 6 April 2026, but the longer it is left, the more difficult the task of record-keeping becomes.

If you would like help with any aspect of MTD, from signing up to keeping digital records and submitting returns, please get in touch. We would be happy to help you!

See: https://www.litrg.org.uk/news/hmrcs-latest-letter-drop-about-making-tax-digital-lands-just-easter-start-date

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