Guidance

Issue 131 of Agent Update

Published 15 May 2025

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Technical updates and reminders

Developments and changes to legislation and allowances relating to UK tax including:

Tax

Making tax Digital

HMRC Agent Services

Agent online forum and engagement

Latest updates from the partnership between HMRC and the main agent representative bodies. Including:

Tax

Employment related securities (ERS) — end of year return deadline

The deadline for filing annual ERS returns is 6 July 2025. Missing the deadline will result in late filing penalties being charged to the employer.

Returns, including nil returns, must be submitted for every scheme that has been registered.

An ERS scheme needs to be linked to a live employer Pay as You earn (PAYE) scheme. If the PAYE scheme is being closed, you must advise the scheme employer to tell HMRC if they are closing any ERS schemes. As an agent, you do not have the function to enter the date of the final event and close an ERS scheme.

If a scheme has been registered in error or it is no longer required, you must advise the employer to cease the ERS scheme. Once a scheme is ceased, an annual return must still be submitted for the tax year in which the final event date falls.

Loan relationship unallowable purpose rule — updated guidance

Under the corporation tax regime applicable to loan relationships of companies, a company can obtain a tax deduction for any interest, losses, or expenses which it incurs in respect of a loan relationship. However, the ‘unallowable purpose’ rule can operate to limit the deduction in cases where the loan has a non-commercial, or ‘unallowable’, purpose.

Following recent Court of Appeal decisions considering the application of the unallowable purpose rule, HMRC has published updated guidance on the rule in the Corporate Finance Manual at CFM38100.

Use of VAT grouping within the care industry

Revenue and Customs Brief 2 (2025) has recently been issued. It explains that a VAT grouping structure used by some state-regulated care providers to recover VAT on costs that relate to supplies of welfare services (that would otherwise be exempt from VAT), is considered a form of tax avoidance. 

It also explains the action HMRC will take to prevent any form of tax avoidance.

New VAT group applications

HMRC will make full use of its powers to protect VAT revenue and, where necessary, refuse new VAT group registration applications that are designed to implement and facilitate these VAT grouping structures.

Existing VAT groups

HMRC is launching a programme immediately to review and investigate all instances where it is known or suspected that an avoidance scheme is in operation within a VAT group arrangement. The brief outlines the powers that will be used to challenge such arrangements and suggests that organisations currently using these arrangements may want to review their current VAT accounting practices independently and seek professional advice. The brief also explains that any powers used will only take effect once the investigation is complete. This means that where this specific arrangement is in place HMRC will not seek to claim tax back from any earlier period. If during the investigation inaccuracies are identified in other areas, tax may be recovered in relation to those inaccuracies.

Further information regarding how the arrangements claim to work can be found in a Spotlight article. 

Where you believe that a business’s arrangements fall within the description given in the brief and Spotlight article, you should:

HMRC’s wider approach to tax avoidance

Where taxpayers are involved in a tax avoidance scheme HMRC will fully investigate their tax affairs and may treat them as a high-risk taxpayer. This means HMRC will closely inspect all their tax affairs in future, not just their use of the avoidance scheme.

Report a scheme

You can report tax fraud and tax avoidance arrangements, schemes and the person offering you them to HMRC by using our online form to report tax fraud.

You can submit this form anonymously and do not have to give your name, address or your email.

You can phone HMRC to report tax fraud if you cannot use the online form.

Statutory Neonatal Care Leave and Pay — draft communication for HMRC Stakeholders

On 6 April, the Government introduced a new statutory entitlement to Neonatal Care Leave and Pay. This provides employed parents whose babies are admitted to neonatal care with a day-one employment right to take up to 12 weeks off work, depending on the length of time their baby is in neonatal care. Eligible parents are also entitled to up to 12 weeks of statutory pay.

The Neonatal Care Leave and Miscellaneous Amendments Regulations 2025 and The Statutory Neonatal Care Pay (General) Regulations 2025 were approved by the Houses of Parliament on Monday 17 March 2025.

These newly approved regulations set out the main provisions of the new entitlement, including:

  • a broad definition of a parent which captures a range of parental and personal relationships; including adoptive parents, parents who are fostering to adopt and the intended parents in surrogacy arrangements
  • the ability to take the leave flexibly, in blocks of at least one week, when the child is still receiving neonatal care, including a week afterwards, and the requirement to take the leave in a single continuous block at any other period within 68 weeks of the child’s birth
  • notice requirements in order to take Neonatal Care Leave
  • notice and information requirements to take Statutory Neonatal Care Pay

Read more on The Neonatal Care Leave and Miscellaneous Amendments Regulations 2025 and The Statutory Neonatal Care Pay (General) Regulations 2025.

The Government has also made regulations to make amendments to other secondary legislation. This was done to reflect the introduction of Statutory Neonatal Care Leave and Pay, as well as to deal with the administration of the new statutory payment, and the entitlement of certain persons abroad and mariners to this payment. Together, these Regulations ensure consistency between Neonatal Care Leave and Statutory Neonatal Care Pay and other existing family-related leave and pay entitlements.

Read more information on Statutory Neonatal Care Pay and Leave and employees guidance.

Issuing of Unique Taxpayer References over the phone

As part of our ongoing commitment to keep our customer data secure, we are no longer providing Unique Taxpayer References over the phone.

Customers will be able to find their Unique Taxpayer Reference (UTR):

  • in the HMRC app

  • in their Personal tax account

  • on previous tax returns and other documents from HMRC (for example, notices to file a return or payment reminders)

If a customer cannot find their UTR online or on any documents, we will send it to them by post after they have successfully answered a series of security questions. 

Agents that call on behalf of their client will be advised where the UTR can be found. If they cannot find the UTR online or on any documents, we will send a letter direct to the agent’s client. This letter can take up to 2 weeks to arrive.

Spotlight 68 — using prepaid debit cards for profit extraction to reduce profits and disguise income

Spotlight 68 provides information on a tax avoidance scheme being marketed to companies that aims to reduce Corporation Tax and VAT liabilities whilst also claiming to provide non-taxable income for directors, their associates or both.

Spotlight 68 is claimed to work as follows:

  • a company buys ‘advertising’ from the scheme. This expenditure is included in the profit and loss account of the user. It is claimed this is tax deductible
  • an amount often equal to at least 80% of the amount spent on ‘marketing’ is then returned to directors or employees in the form of “loyalty points” which are converted to monetary amounts and charged to prepaid cards
  • the recipients of these cards then spend the amounts on these cards as they wish — it is claimed that the “loyalty points” are not taxable income

You and your customers should be alert to the details contained in Spotlight 68 as it is HMRC’s view that this scheme does not work, and we will challenge anyone promoting such arrangements. People who use these arrangements may have to pay more than the tax they tried to avoid as well as paying interest, penalties and high fees for using such schemes.

If you think you or one of your customers are already involved in this arrangement and want to get out, HMRC can help. HMRC offers a range of support to get you back on track or avoid being caught out in the first place. Contact HMRC for advice on getting out of an avoidance scheme if you have any concerns.

You can report tax fraud and tax avoidance arrangements, schemes and the person offering you them to HMRC by using our online form to report tax fraud.

New Interactive Compliance Guidance tool now live

HMRC’s new Interactive Compliance Guidance tool can help businesses and individuals understand HMRC compliance checks.

It provides information and support about compliance checks — supporting the government’s Plan for Change to deliver economic growth.

The Interactive Compliance Guidance tool provides information to help customers understand:

  • HMRC compliance checks
  • why HMRC has requested specific information or documents
  • how to request extra support due to health or personal circumstances
  • how to appoint someone to act on your behalf
  • what to do if you disagree with a decision made by HMRC
  • how to pay a tax assessment or penalty

It brings together existing compliance guidance and videos in one place, making it easier to find and navigate the appropriate information.

The guidance and interactive tools are free to use, available directly from GOV.UK and are for information purposes only.

Users will not be registered for any taxes because of using the guidance and HMRC will not collect or store any information about the user.

HMRC keeps all its guidance under review. Feedback from businesses and key stakeholders is considered to improve customers’ understanding and experience when navigating online guidance.

Read more information in the HMRC Press release, on mynewsdesk.com.

Mandating the reporting of Benefits in Kind and expenses through payroll software — an update

On 28 April 2025, following feedback from external stakeholders, the government announced that the mandatory reporting and paying of Income Tax and Class 1A National Insurance contributions on Benefits in kind (BiK) will be introduced from April 2027 instead of April 2026. This will provide more time for employers, payroll professionals, software providers, tax agents and other stakeholders to prepare for the change.

HMRC has published a technical note mandating the reporting of benefits in kind and expenses which provides more operational information on how businesses can adapt to these changes in time for April 2027.

Get ready for payrolling

It may be worth considering registering to voluntarily payroll your clients’ benefits in kind from April 2026. This will help you to familiarise yourself with the process of reporting benefits in kind using payroll software in readiness for mandatory payrolling. It will also provide an opportunity to test how your organisation’s payroll processes and systems work and adapt them for real-time reporting if required.

If you wish to do this, you must register for voluntary payrolling by April 2026 to be able to voluntarily payroll your clients’ BiK in the 2026 to 2027 tax year. You can only start to payroll benefits and expenses from the beginning of the new tax year.

Not all BiK can be reported through the current voluntary payrolling system for the 2026 to 2027 tax year. Interest free and low interest (beneficial) loans and employment-related living accommodation will still need to be reported on a P11D for Income Tax.

For the 2026 to 2027 tax year, you will still need to report the Class 1A National Insurance for all BiK by submitting a P11D(b) online form. You must still complete and submit P11D forms for any benefits and expenses which have not been payrolled.

Make sure employees are informed about moving from a P11D and P11D(b) reporting process to real-time reporting.

Read more information about how to report expenses and benefits provided to employees and directors through the voluntary payrolling system.

We will continue to engage with stakeholders to make sure that the mandatory reporting of BiK and taxable expenses through payroll software works for both HMRC and customers.

Simple Assessment

From June 2025, HMRC will begin issuing Simple Assessment letters providing a detailed calculation for any tax owed by customers for income received between April 2024 and April 2025.

Simple Assessment letters are sent to customers who are not part of Self Assessment, and for those who either do not have a PAYE tax code, or where we cannot deduct the tax due automatically through that process.

While some customers may receive a Simple Assessment year-on-year, most will have no previous knowledge of what a Simple Assessment is, how it is calculated or why they have underpaid tax. You may therefore start to receive queries from clients who receive one of these letters.

We want to support customers who receive a Simple Assessment letter to know what to do, how to pay or to query the calculation.

The Simple Assessment letter details exactly what customers need to do and includes information about:

  • how much tax is owed
  • when it needs to be paid (usually by the following 31 January)
  • how to pay it, including what to do if they disagree with the assessment

There are various ways for customers to pay, including the HMRC app. You can find further information on paying a Simple Assessment tax bill on GOV.UK.

A common reason for a Simple Assessment is to pay tax on their State Pension. Customers can use our interactive tool —check if you need to pay tax on your pension to see if this is likely to apply to them.

In these circumstances customers can also watch the following videos:

How increases to the State Pension can affect the tax you pay

How increases to the State Pension can affect the tax you pay

How you pay any tax due on your State Pension if it’s more than your Personal Allowance

How you pay any tax due on your State Pension if it’s more than your Personal Allowance

Customers who owe tax from Bank and Building Society interest may receive 2 Simple Assessment letters in the same tax year depending on when this information is provided to HMRC. When this occurs, customers should be made aware that any amount due for the second assessment will be independent from the first.

If a customer receives a Simple Assessment, but they have already registered for Self Assessment or filed their tax return for the year to which this assessment relates, they or their agent can call HMRC on 0300 200 3300 to have their Simple Assessment withdrawn. 

Making Tax Digital

Making Tax Digital for Income Tax events

HMRC is hosting a series of Making Tax Digital (MTD) for Income Tax events at HMRC offices across the UK this year. Agents and software developers are welcome to attend one of these sessions to help prepare for when MTD for Income Tax becomes a legal requirement in April 2026.

At these events, you will:

  • learn more about taking part in the testing phase and the additional support you’ll get
  • receive hands-on guidance to sign up for testing
  • understand which clients will fall under MTD for Income Tax
  • gain clarity on MTD obligations and compatible software
  • discuss managing clients using the Agent Services Account
  • have the opportunity to ask HMRC your MTD-related questions

Registration is now open for the following events, which will each take place from 11am to 3pm:

  • Tuesday 3 June 2025 — Liverpool
  • Thursday 3 July 2025 — Nottingham
  • Wednesday 6 August 2025 — Manchester
  • Tuesday 9 September 2025 — Bristol
  • Monday 13 October 2025 — Birmingham

Spaces are limited so if you are interested in attending, please email mailboxmakingtaxdigital@hmrc.gov.uk and tell us which event location you would like to attend in your email. By emailing HMRC, you consent to being contacted before, during, and after the event.

You can find out more information about MTD for Income Tax and what you need to do to get ready for this change in our updated Agent Toolkit and Making Tax Digital for Income Tax for agents step by step guide. 

You can also check out our video from the MTD event on 7 April.

video from the MTD event on 7 April

During the event, HMRC experts were joined by software developers to discuss the steps agents need to take to get ready.

HMRC Agent Services

Carbon border adjustment mechanism (CBAM) — Policy update and consultation

UK importers and international partners are invited to give feedback on the government’s draft primary legislation for the carbon border adjustment mechanism (CBAM), which was published on 24 April 2025 for technical consultation.

CBAM comes into effect on 1 January 2027 and will impact importers of goods from the aluminium, cement, fertilisers, hydrogen, iron and steel sectors and downstream producers that use these goods in their supply chains.

This technical consultation is an opportunity for stakeholders to comment on the primary legislation, to make sure it delivers the policy correctly and effectively. Email your feedback by 11:59pm on 3 July 2025.

Changes to Corporation Tax reminders, statements and receipts 

As part of HMRC’s continuing efforts to improve its services to send and receive taxpayer information digitally, HMRC is no longer sending paper copies of some Corporation Tax (CT) letters where customers and agents can access the same information via online services when they need it.

From June, we will no longer automatically send the following non-statutory Corporation Tax letters:

  • CT205/A return reminders for companies and agents
  • CT207 interest statement
  • CT209 payment receipt
  • CT603A agent list of issued notices to deliver Company Tax return
  • CT608 instalment payment reminder

We will also trial no longer sending Corporation Tax reminder letters (CT208) before we stop sending them permanently. The trial will initially stop sending reminders to a small population of customers with agents and, if successful, we will increase this and eventually include the CT208 reminders to customers. We will monitor the effect and stop the trial if we see a negative impact on our customers or process.

There are no changes to the Corporation Tax process itself. Companies will still receive a notice to deliver a Company Tax Return. Customers can also contact us by phone or post for any queries.

Companies can also access their HMRC online accounts and Agents can access HMRC’s Corporation Tax for Agents online service to view liabilities and payments.

Read more information on the Company Tax returns where there is also guidance on the Corporation Tax accounting periods.

The end of the Alcohol Duty Stamps Scheme

The Alcohol Duty Stamps Scheme closed on 1 May 2025. 

This scheme applied to larger retail containers of higher alcoholic strength products — those of a volume of 35 centilitres (cl) or more, and a strength of at least 30% alcohol by volume or more. 

Products previously within the scheme, typically higher strength spirits, no longer require a UK Duty Paid stamp.

Producers and importers should now stop stamping retail containers with the duty stamp design. They should update their bottle label designs for new stock. Existing stamped stock will remain legal for sale and supply, while legacy stamped stock is used up.

Traders should remind themselves of the risks associated with illicit alcohol. Where applicable, wholesalers and retailers must also follow the requirements of the Alcohol Wholesaler Registration Scheme.

Practical guidance about the end of the scheme can be found in a Revenue and Customs Brief — Ending the Alcohol Duty Stamps Scheme. 

Self Assessment — early filing and top tips

It is a new tax year which means tax agents can now file their clients’ and their own 2024 to 2025 tax returns.

Here are the benefits of filing early and top tips for Self Assessment (SA) to ensure a stress-free and smooth tax season.

File your tax return early

The benefits of filing tax returns early are:

  • reduced stress — you and your clients will be relieved when their tax return is out of the way, and means you can get on with other important things
  • more time to correct errors — you will have time to correct any mistakes and ensure there are no consequences from getting it wrong
  • improved client satisfaction — clients will realise the benefits of filing early and your support in organising them will help increase satisfaction with your services
  • protection against identify fraud — we know fraudsters target taxpayers before the January deadline, so submitting client tax returns early helps safeguard them from opportunistic identity thieves
  • better financial planning — filing early does not mean paying early, but customers will know what they must pay in advance so they can budget ahead of the payment deadline on 31 January 2026
  • avoid penalties and interest — filing ahead of the deadline means your clients avoid the risk of late filing penalties
  • give yourself time to prepare for Making Tax Digital (MTD) for Income Tax — MTD will become mandatory in phases starting from 6 April 2026, so getting tax returns out of the way gives you more time to prepare your clients and your business for the changes to come
  • opportunity to reduce payments on account — Filing early may provide an opportunity to accurately reduce the 31 July payment on account

Tips for agents

Registering and reactivating Self Assessment (SA)

It takes longer to process tax returns from customers who have not registered for SA prior to submitting their tax return or who did not reactivate their SA account.

People who are new to SA must register with HMRC so they can be set up on the system and receive a notice to file.

If your client has previously been in SA and did not file a tax return last year, make sure their account is reactivated before submitting their tax return. Returning SA customers do not need to register as new, as they already have a Unique Taxpayer Reference (UTR).

The quickest and easiest way to register and reactivate SA accounts is to do this online. Your client can do this in their online account.

If you need to do this for them, go online to find out how to register your client or reactivate a Self Assessment account using one of the following forms:

  • CWF1 for self-employed clients
  • SA1 for clients who are not self-employed

If you are not able to use the online service, you can contact us using webchat, by phone, or by using the print and post version of the forms.

Quickest way to get your clients Income and employment details

Use the Income Record Viewer to see your client’s:

  • PAYE information for the current year plus the 4 previous tax years
  • employment records, including time in employment and PAYE reference
  • latest tax code for the current tax year including all allowances and deductions
  • state and private pension information

How to get tax returns and repayments right

To help speed up repayment requests you should:

  • register or reactivate your client’s account for SA and wait until they receive their notice to file before submitting their tax return
  • check the client’s details are correct and up to date, this includes their bank sort code, account number, UTR, National Insurance number, name and address
  • leave 14 days after making a payment before you request a repayment otherwise it will be delayed
  • make sure repayment requests for clients who were previously bankrupt are submitted using their post bankruptcy UTR
  • notify HMRC of the capacitor if the client died before submitting their tax return and before requesting a repayment
  • encourage your clients to receive their repayment electronically — Bacs is the quickest and most secure method

Marriage allowance sequencing

Tax returns that include Marriage Allowance must be submitted in the correct sequence to avoid delays:

  • the person transferring the allowance (transferor) should submit their tax return first if the person receiving the allowance (recipient) is also in SA
  • the recipient should leave 72 hours after the transferor has submitted their tax return before submitting theirs

Waiting for a reply

Use the Check when you can expect a reply from HMRC tool to check when you can expect a reply. Please wait until the due date has passed before you contact us.

Stopping Self Assessment

If your client no longer needs to file a tax return you should contact HMRC as soon as possible. You can do this online, using webchat, by calling or writing to us. Your client can also do this online.

Read the Information on how to stop Self Assessment which you can pass on to them to action.

If customers do not inform us that their circumstances have changed and they no longer need to be in SA, then we will continue to write to them, and they may get a penalty if they do not file on time.

Submitting a tax return as an amendment

It is good practice to submit your client’s tax return as an original, not as an amendment to avoid delays.

We receive a high number of tax returns submitted as an amendment using third party software, however, we have not received the original tax return.

This results in delays because these tax returns cannot be processed automatically. To make sure tax returns are processed quickly, submit the original tax return as normal and not as an amendment.

Repayments through PAYE

Check with your client if they received a repayment through PAYE and that it is included in their tax return before you submit a repayment claim through SA.

If a repayment has already been made through PAYE, HMRC will have to check the position manually to ensure that your client is not repaid more than they are due. This will delay your client’s claim.

Check if your client needs to complete a tax return

Use the check if you need to send a SA tax return tool to see if your client needs to complete a tax return.

Contacting HMRC

It is quicker and easier to use our online services for Agents. If you cannot use the online service and need to call or use our webchat service, have your client’s UTR and National Insurance number ready so we can deal with your call without delay.

When contacting the Agent Dedicated Line we will deal with a maximum of 5 customers per call. To maximise our service, we suggest you contact us with multiple clients rather than individually.

Updating your clients’ details

Delays often occur because client details such as name and address are not correct. Use our online services to amend your client details or ask them to update it in their HMRC online account.

Improving the way agents access the Personal Tax Query Resolution Service for Agents

We have made further improvements to the Personal Tax Query Resolution Service for Agents which launched on 31 March 2025. Agents can now access the service using the Check when you can expect a reply from HMRC tool, instead of emailing us.

The tool will guide agents through the eligibility criteria before submitting a query. This should make the service easier to access for agents, save them time, and increase our internal efficiency so our teams can focus on eligible queries and continue to respond within the set timeframes.

The service is an escalation route for Self-Assessment and PAYE queries.

As a reminder, the service for agents provides an escalation route for Self Assessment and PAYE queries for individuals that our Agent Dedicated Line or Agent Webchat have not resolved.

 Agents can use the Personal Tax Query Resolution Service through the ‘Where’s my reply tool’ when:

  • at least 20 working days have passed from the reply date given in the tool
  • tried at least twice to resolve the query by contacting the Agent Dedicated Line or Agent Webchat
  • have not already initiated a complaint with HMRC related to the query

Once a query has been submitted, we will:

  • contact the agent within 48 hours to acknowledge the query
  • provide an update every 5 working days
  • aim to resolve the query within 20 working days, or make an action plan if we cannot

To help us resolve queries within the set timeframe, we ask that agents: 

  • provide all relevant information and documentation that we ask for to help us resolve the query
  • answer the phone if you are expecting a call from us, and make sure that your phone line accepts withheld numbers
  • respond promptly if we ask for clarification, or more information
  • do not chase a query before the 20 working days have passed
  • do not use this service to chase repayments, chase postal delays or queries relating to Making Tax Digital

We will continue to review and improve the service regularly to make sure we are meeting agents needs.

Cybercrime and the use of legitimate software

As tax agents, you are an attractive target for cybercriminals. Your access to sensitive financial information for your clients and your business makes you a prime candidate for cyberattacks. If one of your devices becomes infected, a criminal may have access to everything you use it for, including your HMRC online services for agents account or Agent Services Account (ASA). It is your responsibility to be vigilant and protect your systems from these threats.

The threat of legitimate software

Criminals are increasingly sophisticated in their methods, often tricking tax agents into downloading legitimate commercial software that gives them remote access to their devices. This can be done using phishing emails with links or attachments, sometimes disguised as a bill, certificate or another form of document. 

It may not be obvious that this software is being downloaded, and once misused, they can provide criminals with the ability to control your device without your knowledge. Because these programmes are not inherently malicious, your antivirus software may not detect them as threats.

Top tips for staying safe

  • avoid following links or downloading attachments in suspicious or unexpected emails and messages

  • be cautious of fake HMRC letters containing disguised links — you can check if a letter from HMRC is genuine or a scam using our list of recent letters from HMRC to help you decide

  • be vigilant for Multi-factor Authentication that you did not set up or authorise

  • regularly monitor your accounts for any suspicious activity and filings that you do not recognise

  • regularly update your operating system and all software to protect against known vulnerabilities

  • check your system for software that you have not installed or use, and remove if found

  • use strong unique passwords

If you believe your agent account has been compromised 

If you think your account has been compromised, change your password immediately and report it to HMRC, by contacting our Online Services Helpdesk — who you can reach on 0300 200 3600. 

If we believe your agent account has been compromised 

HMRC monitors transactions on customer accounts for suspicious activity. If we believe an account has been compromised, we may immediately suspend that account without notice to prevent further criminal access. We will then write to you to advise you on the next steps to take.

If your account has been suspended, you will not be able to log in or reset your password. If you have not yet received a letter with the next steps to take, then you can call our Online Services Helpdesk — who you can reach on 0300 200 3600. 

They will initiate the process for unsuspending your account and will try to call you back within 72 hours to walk you through a password reset across all gateways and all third-party filing software. 

More information 

For more information:

Agent Forum and Engagement

Closure of the HMRC online community forums

Following an extensive review of the Agent and Customer Online Forums, that has included engagement with several of our stakeholders, HMRC has taken the decision to close both with effect from the 30 June‌‌‌ 2025. This decision reflects the increasing popularity of our newer, superior digital support channels and a move to modernise and improve the online services we offer.

In preparation for the closure, the forums will stop accepting new queries from early June 2025.

Forum users have been contacted to notify them of this change and signposted to alternative digital customer support channels available.

As an alternative to the Agent Forum, you can use HMRC’s other digital support channels. These channels offer a range of tailored support and allow agent queries to be addressed more quickly and efficiently:

  • Webchat — an agent only channel which offers a faster alternative to telephony
  • @HMRCcustomers on X (formerly Twitter) — for help with general queries about HMRC’s products and services
  • Agent Talking Points webinars — for information on a range of subjects with opportunities for participants to submit questions
  • tax agents’ handbook — for information to help tax agents and advisers find guidance, use HMRC services and contact HMRC
  • service dashboard — for information on current service levels for post and online requests
  • Agent Updates — a monthly online digest of information specifically for the agent community

The closure aligns with HMRC’s Digital Channel Strategy, prioritising services that are quick and easy to use, allowing agents and customers to self-serve and offering real-time support. It will also allow us to redirect resource to support our most popular channels and develop technologies that meet current and future customer needs. 

Technical consultation on draft secondary legislation for Restitution Interest

HMRC has published a technical consultation in respect of draft secondary legislation for Part 8C of the Corporation Tax Act 2010 (Part 8C) which concerns restitution interest.

The existing rules in Part 8C of the Corporation Tax Act 2010 are intended to address the potential for awards by the High Court of restitution interest made on a compound basis in respect of claims made under mistake of law. It withholds, and subsequently charges, Corporation Tax at a rate of 45% on payments of restitution interest. 

The secondary legislation of the draft regulations:

  • will put beyond doubt that Part 8C does not apply to claimants who are entitled to awards of simple interest at a rate which is equivalent to or lower than a statutory rate of interest available under the Taxes Acts
  • will introduce a 2-year time limit for making an assessment which commences from the end of the accounting period in which the claim for restitution is finally determined, if the normal time limits for the making of an assessment have expired before that time

The consultation runs until 30 May 2025.

Copies of the draft regulations and accompanying tax Information and impact note are available to read Corporation Tax: changes to restitution interest rules.

HMRC is seeking technical feedback on the draft regulations to ensure they operate as intended and to identify any areas which need further clarification in more detailed guidance. HMRC is happy to meet interested parties to discuss technical concerns raised by the draft regulations.

This consultation will be of interest to tax professional bodies and tax advisers, and companies. Especially those who are entitled to, or have received, an award of restitution interest from HMRC in respect of a claim filed with the High Court regarding payment of tax under mistake of law or unlawful collection of tax.

Income Record Viewer

In Issue 129 of Agent Update we explained how to raise a technical or non-tax related issue with the Income Record Viewer. Continue to use the ‘is this page not working properly’ online link to report and receive an acknowledgement email on issues.

To assist us in ensuring the service is working effectively, we require agents to use this reporting service where technical or non-tax related issues are identified.

Address rejections — hints and tips

Our hints and tips article in Issue 128 of Agent Update details some of the ways in which agents can help reduce the number of rejections, particularly in ensuring that the address from the Royal Mail Postcode Finder is used in the client’s Personal Tax Account, and that this matches any subsequent Self Assessment repayment claims. 

PAYE Auto coding

After ceasing self-employment, a customer may still have PAYE expenses deducted from their tax code, if those expenses are still due. Ceasing Self Assessment does not remove expenses already included in a customer’s PAYE code. Customers will need to check their current tax code and notify HMRC if those expenses are no longer due. Note that if a customer or agent has updated HMRC in the current tax year to advise a change to a tax code, the expenses on the latest return submitted will not alter that code, this is because the tax return is CY-1 and the in-year update from the customer or agent will be the most up to date information. If a customer believes that tax code is incorrect, they should follow the guidance Tax codes — How to update your tax code.

Missing PAYE Codes

Subject Matter Experts have advised that discussions are continuing where PAYE codes do not appear on PAYE Desktop Viewer.

If there has been no change to a customer’s PAYE code, then the previous year’s code is carried forward or uplifted following the start of the new tax year. In these circumstances the code is not visible on PAYE Desktop Viewer.

PAYE Desktop Viewer displays codes sent to employers.

Contact and support from HMRC

Agents are reminded of the following communication channels and support services :

  • webchat — an agent only channel which offers a faster alternative to telephony

  • @HMRCCustomers on ‘X’ (formerly twitter) — for help with general queries about HMRC products and services

  • agent Talking Points webinars — for information on a range of subjects with opportunities for participants to submit questions

  • Tax agents’ handbook — for information to help tax agents and advisers find guidance, use HMRC services and contact HMRC

  • Service Dashboard — for information on current service levels for post and online requests

  • Agent Updates — a monthly online digest of information specifically for the agent community

Further guidance and education available:

Contact Information for professional and representative bodies

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