HMRC intensifies scrutiny of R&D tax claims                                                                              December 2025

HMRC has significantly increased oversight of research and development (R&D) tax relief, with errors in claims totalling £441 million in 2023/24. In 2024, one in five claims faced an enquiry, compared with just one in 20 two years earlier.

The compliance crackdown includes creating a specialist anti-abuse unit, which added 300 staff to HMRC’s small business compliance team. Around 500 officers now focus on detecting errors and fraud in R&D claims.

Two new measures are also raising the bar. The additional information form (AIF) requires claimants to submit detailed project and cost breakdowns upfront. At the same time, the mandatory random enquiry programme (MREP) increases the likelihood of investigations, even for fully compliant claims.

There are three key steps to reduce risk.

• Strong documentation is the best defence in an enquiry. Businesses should ensure they track project milestones, staff time and costs using reliable systems, and back up claims with payroll data, invoices and receipts.
• Compliance should not be a last-minute task. With regular reviews and early preparation, accountants can guide clients to embed good practice throughout the year.
• Rejected claims damage cashflow and confidence. Businesses that combine robust documentation with technical expertise and innovative tools put their clients in the best position.

With increasing enquiries, preparation and accuracy are essential for every R&D claim.

Talk to us about your R&D claim.

making tax digital for income tax                                                                                                        January 2026

HMRC are introducing a new regime called Making Tax Digital for Income Tax (MTD for ITSA) from April 2026. The changes will affect unincorporated sole traders and landlords and will alter how income information is reported to HMRC.

While reporting obligations will become more frequent, the timing of tax payments will broadly remain the same. Most taxpayers will still pay income tax once or twice a year, in line with the current self-assessment system.

what is making tax digital for income tax?

If you are an unincorporated sole trader or landlord with combined qualifying turnover of £50,000 or more, you will be required to submit income records to HMRC on a quarterly basis using HMRC-approved software.

From April 2027, the regime will be extended to include unincorporated sole traders and landlords with turnover of £30,000 or more.

what will change under MTD?

quarterly submissions

Income records will need to be submitted quarterly rather than once per year. From April 2026, the submission deadlines will be:

• 7 August
• 7 November
• 7 February
• 7 May

At the end of the tax year, a final tax declaration must be submitted by 31 January following the end of the tax year. Adjustments can be made at this stage. This final declaration will replace the current annual self-assessment tax return.

As with the existing system, tax will usually still be paid once or twice a year.

HMRC-compatible software

From April 2026, taxpayers within the MTD regime will only be able to submit information to HMRC using approved software. Manual submissions outside approved systems will no longer be permitted.

how do I know if I am affected?

If your 2024/25 self-assessment tax return (submitted by 31 January 2026) shows qualifying turnover of more than £50,000, HMRC will contact you to confirm that you must comply with Making Tax Digital from 6 April 2026.

If your combined turnover from property and/or self-employment is below £50,000, you will not be required to comply from April 2026. However, all unincorporated sole traders and landlords with turnover exceeding £30,000 will fall within the regime from April 2027.

HMRC may also issue pre-mandation letters from April 2025 where they believe taxpayers are likely to fall within the new regime. An online checker tool is available to confirm whether you qualify.

what happens if I do not comply?

Making tax digital is mandatory. If you are required to submit quarterly updates, you will no longer be able to file using the annual alternative method.

HMRC will operate a points-based penalty system. Once a specified number of points is reached, an automatic £200 fine will be issued. Points can arise from both late submissions and late payments and remain valid for two years.

Following a penalty, HMRC requires a 12-month period of full compliance before points are removed. A one-off fine may also apply where compatible software is not used.

how we can help

Making tax digital represents a significant change for many sole traders and landlords. Early preparation can help ensure compliance, reduce disruption, and avoid penalties. If you would like support with software selection, record-keeping, or quarterly submissions, please contact us.

DAS Accounting Services UK
105 Eade Road, OCC Building A, Second Floor, Unit 11a, London, N4 1TJ
uk@dasaccounting.com • 020 8396 7353

let property campaign                                                                                                                        January 2026

The Let Property Campaign gives taxpayers an opportunity to bring their tax affairs up to date if they are individual landlords letting out residential property in the UK or abroad, and to obtain the best possible terms for paying the tax they owe.

The Let Property Campaign is a scheme offered by HMRC to encourage landlords with undeclared rental income to come forward and make a voluntary disclosure. HMRC’s Connect system and the wider data sources available to HMRC are increasingly likely to identify undeclared property income, which can lead to higher penalties and, in some cases, public naming.

In our experience, many landlords hesitate because they assume the tax liability will be higher than it needs to be. However, once the position is reviewed properly and allowable expenses and reliefs are taken into account, the overall liabilities are often lower than anticipated.

We have helped a large number of new clients make full disclosures to HMRC under the Let Property Campaign. We would encourage any landlords with undisclosed income to come forward for peace of mind before HMRC approaches them first. If you have any undeclared properties, we can support you through the disclosure process and help keep penalties and interest to a minimum.

next steps

If you are a landlord considering making a disclosure, or you have received a letter from HMRC, please contact us. We can guide you through the process and help you reach the best possible outcome.

DAS Accounting Services UK
105 Eade Road, OCC Building A, Second Floor, Unit 11a, London, N4 1TJ
uk@dasaccounting.co.uk • 020 8396 7353

navigating the complexities of US-UK taxation for LLC owners                                                May 2025

US LLCs and UK tax: what ever cross-bordered business owner should know                              

If you’re a UK resident who owns a US LLC, you’re in a unique position that offers both opportunity and complexity, especially when it comes to tax. While setting up a Limited Liability Company (LLC) in the US is often praised for its flexibility and ease, failing to understand how it’s treated for UK tax purposes can lead to unintended, and costly, consequences.

At DAS, we regularly help clients navigate this exact situation. Here’s what you need to know.

US vs UK tax treatment: a fundamental mismatch

In the United States, LLCs are usually treated as “pass-through” or “flow-through” entities. That means the LLC itself doesn’t pay tax on its income, instead, the profits are reported and taxed on the personal tax returns of the members (owners).

However, the UK doesn’t automatically see things the same way. HMRC typically treats US LLCs as “opaque” entities, similar to corporations. This means profits are taxed at the company level, and then again when distributed, potentially resulting in double taxation for UK-resident owners.

the anson vs HMRC case: a turning point, or is it?

In 2015, the UK Supreme Court ruled on the case of Anson v HMRC. Mr. Anson, a UK resident and member of a US LLC, successfully argued that the LLC’s income was attributable to him directly, entitling him to a foreign tax credit in the UK for the US taxes paid.

While this was hailed as a landmark decision, it’s crucial to understand the limits of its impact:

• The ruling was highly fact-specific, based on the exact structure and operating agreement of the LLC in question.
• HMRC has not changed its general stance: it still treats most US LLCs as opaque, unless strong evidence shows the LLC is legally transparent.

In other words, unless your LLC closely mirrors the facts of the Anson case, you cannot rely on this ruling alone to avoid double taxation.

what this means for you

If you’re a UK tax resident who owns a US LLC, you’re likely to face:

• No automatic foreign tax credit in the UK for US taxes paid on LLC income
• Potential double taxation on the same income
• Complex reporting obligations in both jurisdictions

But with careful structuring and professional advice, there are ways to reduce or even eliminate these issues.

how DAS can help

At DAS, we specialize in helping UK-based owners of US LLCs make sense of the rules, align their structure with best practices, and ensure tax compliance in both jurisdictions.

Whether you’re just setting up your LLC or you’ve already been operating for years, we can:

• Review your LLC operating agreement and structure
• Liaise with qualified tax professionals in both countries
• Help you determine if your setup could qualify for “Anson-like” treatment, or recommend more efficient alternatives

don’t leave it to chance, make your setup “Anson-proof”

Every business is different. Even small structural changes can have a major impact on how your income is taxed. Let us help you build a cross-border business that works for you, not against you.

Contact DAS today to book a consultation and ensure your US LLC is compliant, efficient, and tailored for success.

US tax season 2025: what you need to know                                                                                      May 2025

We’re officially in the thick of tax season, and as every CPA knows, this time of year brings long days (and even longer nights). At our firm, we’re hard at work ensuring that every client’s return is filed with accuracy, care, and on time. Whether you’re an early filer or just now getting your paperwork in order, we’re here to help guide you through the process.

is everything in order?
If you haven’t already, now is the time to gather all your tax documents: W-2s, 1099s, investment statements, and any deductions or credits you plan to claim. Having everything ready to go can help minimize stress and reduce the risk of errors or delays.

Even if you plan to file for an extension, remember: an extension gives you more time to file, not more time to pay. Any taxes owed are still due by the April deadline unless you qualify for a special exemption.

special relief for california taxpayers
This year, there’s some important news for California residents. In response to the devastating wildfires that have impacted many communities across the state, both the IRS and the California Franchise Tax Board (FTB) have granted automatic filing and payment extensions. Affected taxpayers now have until October 15, 2025, to file and pay their 2024 taxes.

This relief applies not only to those directly affected by the fires, but also to individuals in adjacent areas including much of Los Angeles –  who may have experienced disruptions or hardships as a result. If you’re unsure whether you qualify for the extension, we can help determine your eligibility and guide you through the necessary steps.

what’s next at the firm?
Behind the scenes, we’ve been working on a few exciting new developments that we can’t wait to share with you. While we can’t say too much just yet, stay tuned for announcements in the coming weeks we think you’ll like what’s on the horizon.

need help? let’s talk.
Tax season can be stressful, but you don’t have to go it alone. Whether you have a simple question or a more complex situation, we’re always just a call or message away. Our goal is to make tax time as smooth and painless as possible for you and your family.

And to all our fellow CPAs out there grinding through the season: hang in there! Your hard work makes a big difference.

most see no gains from MTD for Income Tax                                                                                        January 2026

A new survey has indicated that most businesses and agents see little benefit in Making Tax Digital for income tax (MTD IT), despite rising awareness.

The Administrative Burdens Advisory Board’s 2025 Tell ABAB report found awareness of MTD IT increased to 46.4% in 2025 from 33.3% in 2024. However, respondents largely expect higher costs and time pressures, with a majority anticipating no benefits. The survey received 3,146 responses, with 77% from businesses and 23% from agents.

The findings arrive ahead of mandation from April 2026 for sole traders and landlords whose 2024/25 self assessment includes combined gross income from self-employment and property above £50,000. HMRC has begun notifying affected taxpayers by letter, with the first batch sent to those who filed returns by the end of August 2025. Further mandation letters are scheduled for February and March 2026, and letters prompting unrepresented taxpayers were planned for late November 2025.

While the report notes growing familiarity with MTD, many respondents remain sceptical about net gains and flag wider concerns around administrative burdens. Businesses preparing for 2026 should review eligibility, ensure compatible record-keeping, and consider software and process changes well in advance of the start date.

Talk to us about your taxes.

DAS Accounting Services UK
105 Eade Road, OCC Building A, Second Floor, Unit 11a, London, N4 1TJ
info@dasaccounting.co.uk • 020 8396 7353

why regular bookkeeping is crucial to your business strategy                                                      November 2023

Financial information is what helps you identify whether your business has brought in profits or losses. Without accurate and up-to-date financials, it’s easy to ‘think’ your business is doing well, when in fact it really is in need of some immediate changes to help it stay afloat. Bookkeeping or financial information helps you create an effective budget for your business expenses. It also keeps you prepared for the end of the financial year, when taxes are due, and keeps your business organized.

filing your US taxes late? here’s what you need to know                                                              November 2023

What if I miss the deadline for filing taxes accidentally? Well, the IRS provides you with many options to file taxes even if it’s late.

Filing taxes late is not a big deal as long as you are filing them. People file their taxes late for many reasons. But here are a few steps you should take if you delay tax filing.

have accountants adapted to covid                                                                                                November 2023

The finance industry took a major hit back in 2020, with many processes being at a stand-still as the majority of businesses went into a work from home mode. 2021, brought its own challenges, with Covid-19 still not completely under control, we at DAS Accounting have had to hustle, to bring about vital transformations that help us reach each of our clients at their point of need.

The experience through the 2020 pandemic has changed the way we work. Here’s a look at the steps (and leaps) we’ve taken to ensure that you only get the best-in-class Accounting Services rendered, hands-down!