Guidance

Issue 130 of Agent Update

Published 17 April 2025

Technical updates and reminders

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

Tax

Borders and Trade

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

Expanding the cash basis   

From 6 April 2024 there were changes to cash basis accounting which make it easier for businesses to use it. Cash basis accounting means that you only need to declare income when you have actually been paid.

These changes only apply to the cash basis for trading income. No changes are being made to the cash basis for property businesses.  

Updates have been made to cash basis guidance explaining:

• who can use cash basis
• rules about the use of cash basis

If businesses wish to use traditional accounting (accruals basis) to report their profits for tax purposes, they will need to opt out of the cash basis when submitting their Self Assessment tax returns for the tax year 2024 to 2025 and subsequent tax years. Businesses excluded from using the cash basis should indicate this on their tax return each year by ticking the relevant box.

Student loans thresholds, rates and loan start notices

The new student loan plan and postgraduate loan thresholds and rates from 6 April 2025 are as follows:

• plan 1: £26,065
• plan 2: £28,470
• plan 4: £32,745
• postgraduate loan: £21,000

Deductions for plan types are as follows:

• plans 1, 2 and 4 remain at 9% for any earnings above the respective thresholds
• postgraduate loan remains at 6% for any earnings above the respective threshold

Our student loan guidance has been updated with the new thresholds.

Arrangements for student and postgraduate loan start notices

If you receive a student loan or postgraduate loan start notice (SL1/PGL1) from HMRC for your client’s employee, it is important that you check and use the correct:

• loan or plan type on the start notice
• start date shown on the notice

This makes sure that the employee’s do not pay any more or less than they have to.

If the employee’s earnings are:

• below the respective student loan and postgraduate loan thresholds, you should update the employee’s payroll record to show they have a student loan and or postgraduate loan and file the start notice — you do not need to return this to HMRC
• above the respective student loan and postgraduate loan thresholds, and deductions have not been taken, HMRC will send a generic notification service prompt as a reminder — if deductions still have not started, we may contact you directly

Deductions should continue until HMRC issues instructions to stop.

If you no longer act on behalf of the client, it is important that your clients record is updated to remove your details.

Read more information on student loan types and thresholds.

Overdue PAYE Settlement Agreement (PSA) calculations

A PAYE Settlement Agreement (PSA) is an enduring agreement that allows employers to make one annual payment to cover all the tax and National Insurance contributions due on small or irregular taxable expenses or benefits for their employees.

HMRC recommends employers send their PSA calculation by 31 July following the end of the relevant tax year. HMRC’s preferred method of receiving calculations is with a PSA1 form.  Where a PSA has been agreed with HMRC, employers must send in a calculation, even if it is to show no tax and National Insurance contributions are due for the year.

Employers should pay the total amount due under a PSA by 19 October (or by 22 October if paying electronically) following the end of the relevant tax year.

HMRC are raising determinations for employers who have failed to meet their PSA obligations for the tax year ending 5 April 2024.

A determination is an estimate of the amount of tax and National Insurance contributions we believe is due which could be higher than the calculation. The legislation that allows us to make this type of determination is Regulation 110, Income Tax (PAYE) Regulations 2003 (S.I 2003 No.2682 part 6). Copies of the Notice of Determination will be sent to authorised agents.

What you or the employer needs to do by the deadline on the letter is detailed as follows:

• read the ‘Notice of Determination’
• if the determination is correct, employers should pay the total amount due
• if the determination is wrong, employers should appeal

For more information read about PAYE Settlement Agreements and help with PAYE Settlement Agreement calculations.

Closing in on promoters of marketed tax avoidance — have your say

In March 2025, the government launched an open consultation seeking views on a range of new measures to close in on promoters of tax avoidance.

This consultation opened on 26 March 2025 and is due to run until 18 June 2025. We are inviting you to submit your responses and evidence.

The government seeks views on proposals in 4 areas, these include:

• expanding the scope of the Disclosure of Tax Avoidance Schemes (DOTAS) regime
• introducing a universal stop notice and promoter action notice
• tackling controlling minds and those behind the promotion of avoidance schemes through new highly targeted obligations and stronger information powers
• exploring options to tackle legal professionals designing or contributing to the promotion of avoidance schemes

The government also seeks views on areas it intends to explore further in the future.

Responding is easy, you can email your views to ca.consultation@hmrc.gov.uk. We look forward to hearing from you.

Capital Gains Tax — work out your adjustment for the 2024 to 2025 tax year

At the Autumn Budget 2024, the government announced changes to the main rates of Capital Gains Tax.    

For the 2024 to 2025 tax year, individuals, trustees and personal representatives will need to take additional steps to calculate their Capital Gains tax if they made disposals on 30 October 2024 or thereafter. This excludes:

• residential property
• Business Asset Disposal Relief
• Investors Relief
• carried interest

This will make sure the new rate of tax is correctly accounted for in the 2024 to 2025 Self Assessment tax return.

This will require using the adjustment boxes on the forms:

• SA108 — Individuals Capital gains summary page
• SA905 — Trust and Estates Capital gains
• SA970 — Tax Return for Trustees of Registered Pension Schemes

This will account for any in-year difference in tax.    

An adjustment tool is available to support individuals, trustees and personal representatives to work out the capital gains tax adjustment.

Changes to company size thresholds for off-payroll working

In issue 129 of Agent Update published on 19 March 2025, we advised you that there are upcoming changes to the small company thresholds used for determining whether a business needs to deduct tax under the off-payroll working rules.

We have now updated our Employment Status Manual (ESM) guidance ESM10006A which provides details about the changes in the small company threshold and how it impacts on off-payroll working. In most cases, the changes will not have practical effect for engagers of off-payroll workers until the tax year beginning on 6 April 2027.

Employer National Insurance contributions, Employment Allowance and Small Employers’ Relief — check if changes affect your clients

Changes to employer National Insurance contributions took effect on 6 April 2025.

The threshold changes mean that some of your clients are now:

• liable to pay employers’ National Insurance contributions
• required to report their employee pay and deductions to HMRC for the first time 

Read the guidance on PAYE and payroll for employers.

The changes will usually have been incorporated into existing payroll software for employers who already report PAYE.

Contribution rate increases 

The employer secondary Class 1 National Insurance contributions rate has increased to 15% from 13.8%. The associated Class 1A and 1B National Insurance contributions rates on expenses and benefits given to employees also increased to 15%. 

Secondary threshold for employer National Insurance contributions liability is now lower

The secondary threshold is the point at which employers start to pay employer National Insurance contributions on an employee’s salary. The secondary threshold decreased from £9,100 to £5,000 per year. 

Employers now need to pay employer National Insurance contributions where they employ staff earning £5,000 a year or more, and report these payments to HMRC, from 6 April 2025.

Any of your clients new to paying employer National Insurance contributions need to register for PAYE with HMRC and use payroll software. 

Read more information on the rates and thresholds for employers 2025 to 2026.

Employment Allowance changes 

The Employment Allowance reduces eligible employers’ National Insurance contributions liability.

From 6 April 2025, the £100,000 threshold was removed. The employment allowance was previously restricted to employers with National Insurance contributions bills of less than £100,000 in the previous tax year.

The maximum amount of employment allowance also increased from £5,000 to £10,500, which means more eligible businesses will be able to claim, and at an increased amount. There have been no other changes to the employment allowance eligibility criteria. Find out more about Employment Allowance eligibility.

Most businesses or charities can apply for employment allowance. However, they cannot do so if they are a public body or a business whose activities wholly or mainly involve the performance of functions which are of a public nature. Whether these functions are publicly funded can indicate functions of a public nature, but funding alone is not the deciding factor.

Your business clients will need to continue to consider if they are a connected company. If, at the start of the tax year, 2 or more companies are connected with each other, only one of those companies can qualify for the employment allowance for that tax year.

If the company has just one director and that director is the only employee liable for secondary Class 1 National Insurance contributions, they are also ineligible. 

Abolition of the £100,000 employment allowance threshold also means that from 6 April 2025, employers will no longer need to consider state aid where they had previously done so because of the threshold restriction. 

Read about further guidance for employers on Employment Allowance for more information, including details about:

• connected companies
• connected charities
• single-director companies
• employers of care and support workers

Small Employers’ Relief compensation rate

The Small Employers’ Relief compensation rate increased to 8.5% on 6 April 2025, as a result of aligning it with changes to employer National Insurance contributions.

Any clients who qualify for Small Employers’ Relief (if they have paid £45,000 or less in Class 1 National Insurance contributions), can reclaim 100% of all statutory payments they pay except Statutory Sick Pay which cannot be reclaimed, plus an additional 3% compensation. This means small employers can now reclaim 108.5% from HMRC.

Find out more about how to get financial help with statutory pay — what you can reclaim.

The compensation rate applies to:

• Statutory Maternity Pay
• Statutory Paternity Pay
• Statutory Adoption Pay
• Statutory Parental Bereavement Pay
• Statutory Neonatal Care Pay
• Shared Parental Pay

All other employers, paying Class 1 National Insurance contributions, can reclaim 92% of what they pay in these statutory payments with the exception of Statutory Neonatal Care Pay.

Changes to tax reliefs for theatres, orchestras and museum and gallery exhibitions

From 1 April 2025, qualifying expenditure for Theatre Tax Relief, Orchestra Tax Relief and Museums and Galleries Exhibition Tax Relief is entitled to tax credits at a rate of:

• 45% for touring productions and all orchestral productions
• 40% for non-touring productions

These rates apply to all productions, regardless of the date they begin production. They replace the former 25% and 20% regular rates and the temporary uplifted rates that applied to productions beginning on or after 27 October 2021.

Also from 1 April 2025, European Economic Area (EEA) expenditure no longer qualifies for relief. Relief is based on UK expenditure instead.

You can find more about:

• Theatre Tax Relief
• Orchestra Tax Relief
• Museums and Galleries Exhibition Tax Relief

Changes to the claims process for the creative industries tax reliefs

Companies claiming creative industry tax reliefs must complete an additional information form in support of their claims, on the same day or prior to submitting their CT600 Tax Returns.

Read about how to how to complete an additional information form and support your claim for creative industry tax reliefs.

HMRC launched an updated version of the additional information form on 1 April 2025. This includes new sections for companies to provide supporting evidence for claims to enhanced Audio-Visual Expenditure Credit (AVEC) for visual effects costs and independent films. There are also new boxes on the CT600 for claims to AVEC or the Video Games Expenditure Credit.

The launch of the CT600P creative industries supplementary page has been postponed until April 2026. There is no requirement for companies to fill out a CT600P to make a valid claim. Companies should not attempt to complete it, even if their software allows them to.

Read the Corporation Tax service issues page for more information.

Launch of enhanced Audio-Visual Expenditure Credit for visual effects costs and independent films

From 1 April 2025, film and TV production companies can make claims for enhanced Audio-Visual Expenditure Credit (AVEC) for visual effects (VFX) costs incurred on films (excluding animated and independent films) and high-end TV programmes.

To qualify, costs must be incurred on 1 January 2025 and thereafter and be spent on relevant VFX work carried out in the UK. Companies with qualifying costs can claim additional expenditure credit in the completion period of a production, or any later period.

Also, from 1 April 2025, film production companies can make claims for enhanced AVEC for independent films (also known as certified low-budget films).

To qualify, for enhanced AVEC, films must:

• start principal photography on or after 1 April 2024
• have core expenditure of £23.5 million or less
• either be an official co-production or have a UK lead writer or director

Companies can claim AVEC on qualifying films at a rate of 53%, on up to £15 million of core expenditure. The higher rate applies to costs incurred from 1 April 2024 only.

Read more about the Corporation Tax creative industry tax reliefs.

Update on UK implementation of Multinational Top-up Tax and Domestic Top-up Tax

Further to our notice in Agent Update 129, our fourth direct update to groups believed to be in scope of the new Pillar 2 taxes was issued during the week commencing 31 March 2025.

As agents have an important role to play in helping businesses meet their obligations, we want to make you aware of this recent communication, which builds on our previous updates explaining the ongoing work to implement these taxes in the UK.

Here is a summary of the important changes in the update.

Webinars

Our webinars will help businesses prepare for their Pillar 2 obligations. The first is on Wednesday 30 April 2025 at 11:45 am. Register for the webinar using the link to ‘OECD Pillar 2 — Scope and UK compliance obligations’ on HMRC email updates, videos and webinars for tax agents and advisers.

Registration

All businesses in scope of Pillar 2 taxes must register using our Pillar 2 online service, even if the group does not think it will have to pay top-up tax. A group must register no later than 6 months after the end of the first accounting period in which it’s subject to the rules. If a qualifying group does not register on time, it may be liable to a penalty.

Only the filing member for the group can use the online service. Agents cannot register on a group’s behalf.

Register using the Report Pillar 2 top-up taxes’ digital service, using the business’s Government Gateway account.

Reporting obligations

The filing member will be responsible for:

• registering with HMRC for Multinational Top-up Tax (MTT) and Domestic Top-up Tax (DTT)
• notifying any changes to the filing member
• submitting the Global Base Erosion (GloBE) Information Return or Overseas Return Notification (ORN)
• submitting a UK Self Assessment return or Below Threshold Notification
• making or revoking elections
• ensuring the group keeps accurate records.

A GLoBE information return is a standardised return containing multiple jurisdictional sections in which tax computations will be shown for each jurisdiction. The OECD information within this update gives more detail about the format of the GLoBE information return.

The UK Self Assessment return will cover both MTT and DTT. Include the group’s total MTT and DTT liability and the liability for each UK member of the group for the period.

OECD updates

The Organisation for Economic Co-operation and Development (OECD) inclusive framework has streamlined the administration of the global minimum tax. On 15 January 2025, it released more details on what in-scope groups need for the GloBE Information Return and the format of the return. To find them, on the OECD website and search ‘Pillar 2’.

HMRC guidance

We published a supplementary document of draft HMRC guidance on 28 January 2025 with invitation to comment. This consultation is now closed. Once the feedback has been reviewed, we will publish the full guidance manual in mid-2025.

Legislation

The UK legislation that implements MTT and DTT is contained in:

• Finance (No.2) Act 2023
• Finance Act 2024
• Finance Act 2025, which also formally introduces the legislation to bring the undertaxed profits rule (UTPR) into effect for periods starting on or after 31 December 2024

Online service

We are continuing to develop our online service, releasing the service in stages. We are also working with third-party software providers to develop software for businesses to use for some submissions.

We would welcome more businesses helping us to develop the online service. Email us at pillar2mailbox@hmrc.gov.uk if you’d like to take part.

Contact

The Pillar 2 Compliance team works with the agent community. Email any questions to us at pillar2mailbox@hmrc.gov.uk.

If you represent a group that is in scope of Pillar 2 but has not  received a letter, or if you would like to subscribe to our Pillar 2 updates, email the mailbox.

Guidance available for the taxation of non-UK domiciled individuals 

Operating PAYE on a reduced amount of a globally mobile employee’s earnings has changed.

Any HMRC directions that were issued before 6 April 2025 will have ceased to have effect.

Section 690 ITEPA 2003 has changed. The process of applying for an HMRC direction has ceased.

The new process allows employers and their agents to send HMRC a notification telling us a proportion of income paid to a globally mobile employee, or a treaty non-resident, which will be treated as not being PAYE income.

If employers wish to operate PAYE on a proportion of an employee’s income for the 2025 to 2026 tax year, you or your client will need to both:

• check the employee is eligible under the new rules
• tell HMRC that you’ll operate PAYE on a proportion of an employee’s income — you can operate PAYE on the reduced amount of income as soon as HMRC acknowledge receipt of it — this should be immediate

Read about globally mobile employees and PAYE for more information.

If you want to make any new globally mobile employee PAYE notifications and experience difficulties in completing and submitting the necessary forms ahead of your April payroll, you should contact HMRC through your usual route to discuss.

Inheritance Tax changes to a residence-based system

The new system affects the scope of property brought into UK Inheritance Tax for individuals and settlements. The test for whether non-UK assets are in scope for Inheritance Tax is whether an individual has been resident in the UK for at least 10 out of the last 20 tax years immediately preceding the tax year in which the chargeable event (including death) arises.

Read about Inheritance Tax if you’re a long-term UK resident for more information.

4-year foreign income and gains (FIG) regime

Individuals who are qualifying new residents in the UK will get 100% tax relief on eligible FIG during their first 4 years of being a resident here. This is known as the ‘4-year FIG regime’. Read about how to Check if you can claim the 4-year foreign income and gains regime. 

This regime only applies to individuals who have not been UK tax resident in the 10 tax years immediately before their arrival.

Overseas Workday relief 

Employees will continue to be able to claim relief on their foreign employment income earned during tax years in which they are eligible for Overseas Workday Relief. 

Overseas Workday Relief will now be available for foreign employment income earned in the first 4 tax years of UK tax residence.

Corporate Interest Restriction (CIR) — Appointment of reporting company by HMRC

Background

CIR allows groups to appoint a reporting company which facilitates the administration of the rules, including the filing of Interest Restriction Returns for the group. We published additional guidance in Corporate Finance Manual 98485 in September 2024 on the situations in which we will appoint a reporting company on behalf of a group.

We continue to view reporting company appointments as part of the self assessment system, and it is the group’s responsibility to comply with the administrative requirements. When preparing to submit an Interest Restriction Return we expect groups to satisfy themselves that they have validly appointed a reporting company (including retaining a record of having done so). 

However, we have heard the concerns raised with us, particularly in respect of past periods. Having considered matters, we are changing our approach for certain periods ending on or before 31 March 2024. 

Periods where HMRC was still in time to appoint a reporting company on 31 March 2025

For periods where we were still in time to appoint a reporting company on 31 March 2025, we will not pursue the specific point that failure to validly appoint a reporting company would invalidate the filed Interest Restriction Returns.

This applies to periods

• ending on or after 31 March 2021
• on or before 31 March 2024

It also includes some earlier periods where we have an open Corporation Tax Self assessment enquiry for a company in the group for the period. 

Practical steps

Where we are currently corresponding with a group about the reporting company status for those periods, we will be contacting the group soon.

Where groups have previously accepted that we would not appoint a reporting company reporting company on behalf of the group, they can approach us and we will work with the group on this. We would only expect groups to contact us where there is a tax impact.

Groups should not be approaching us on a ‘just in case’ basis. We will not appoint a reporting company for a group unless we have previously contacted the group to highlight an issue with, or absence of, an appointment.

The updated approach is on the specific point of whether there is a valid reporting company appointment. We may still use our compliance powers to make sure the numbers in the Interest Restriction Return are correct. Where we are looking to open an enquiry, we may ask about the reporting company for the group and, where necessary, appoint a reporting company ahead of opening an enquiry.  

Earlier periods — periods ending before 31 March 2021

We are still considering our position for cases where we have identified that no reporting company has been appointed but, as of 31 March 2025, we no longer had the power to appoint a reporting company. We are not specifically looking to enquire into issues about reporting company status for these periods, and we are continuing to consider the position for such cases.

Expectations going forwards — periods ending after 31 March 2024

The updated approach only applies to periods ended on or before 31 March 2024. For later periods, groups should be making sure that they have a valid reporting company appointed before they submit an Interest Restriction Return. The guidance in Corporate Finance Manual CFM98485 continues to apply for these periods.

Where a group has established that the status of its reporting company is uncertain, we advise that the group submits a new valid reporting company appointment to put the issue beyond doubt. If the group wishes to appoint a different group company to the company that has previously submitted Interest Restriction Returns, they should first revoke the appointment of the previous reporting company. 

We will not view the appointment of a reporting company for a period ending after 31 March 2024 as any indication or admission that there was not a validly appointed reporting company for previous periods.

How to contact HMRC

Considering the approach above, if a customer has particular circumstances which require our attention, contact the Customer Compliance Manager (if there is one) or restrictionmailbox@hmrc.gov.uk. 

If you have any questions around the approach being taken, then contact the Financial Products team at financialproductsbai@hmrc.gov.uk.

Further guidance is available on

• Restriction on Corporation Tax relief for interest deductions
• Interest restriction: reporting requirements

Borders and Trade

Get ready for the new arrangements for moving goods from Great Britain (England, Scotland and Wales) to Northern Ireland under the Windsor Framework

Following the guidance issued in September 2024, there has been extensive preparatory work undertaken for the new arrangements for the movement of goods from Great Britain to Northern Ireland by parcels or freight set out in the Windsor Framework.

As a result, and subject to the relevant procedures, the new arrangements as set out in the Windsor Framework are planned to take effect from 1 May 2025.

For business-to-business (B2B) parcel movements, there are new processes that traders will need to follow to make sure goods continue to move quickly and smoothly. For existing freight movements, we are introducing new simplified processes which traders may wish to take advantage of.

We have set out key information about these arrangements and actions your customers may need to take.

How to make sure your customers are prepared for the new arrangements

The UK Internal Market Scheme (UKIMS) allows businesses to move eligible goods from a business in Great Britain to a business in Northern Ireland without the need for a full customs declaration and without incurring duty.

To move goods under UKIMS, the party acting as the importer of record must be authorised under the scheme.

When your customers should apply for UKIMS

Your customers should apply for UKIMS if:

• they make B2B parcel movements from Great Britain to Northern Ireland and want to make sure that no customs duty is charged for eligible movements — this is not required for business-to-consumer (B2C) parcel movements
• they make freight movements from Great Britain to Northern Ireland and want to benefit from the simplified processes for Internal Market Movements — this means they can use the Internal Market Movement Information (IMMI) to provide less information for eligible goods, while making sure no customs duty is charged

The process of authorisation may take several weeks so they should apply straight away. Read about how to apply for authorisation for the UK Internal Market Scheme if you bring goods into Northern Ireland.

Parcel movements — information traders need to provide to their parcel carrier

To keep goods moving smoothly, it is important that traders understand whether their customers are businesses or consumers. They must also supply the necessary information to their parcel carrier. Read about sending parcels between Great Britain and Northern Ireland under the Windsor Framework.

B2C parcel movements

If the trader is a business in Great Britain sending a parcel to a consumer in Northern Ireland, their parcel carrier will collect standard commercial information on the parcel as they do now.

Traders do not need to register for any customs scheme (including UKIMS) to send parcels to consumers in Northern Ireland.

B2B parcel movements

If the trader is sending a parcel from a business in Great Britain to a business in Northern Ireland, the parcel carrier they use to move goods will require the necessary information to make sure their goods move quickly and smoothly.

The type of information the carrier will require will depend on:

• their commercial processes and whether the business sending or receiving the parcel is a UKIMS authorised business
• whether the goods are eligible to move under that scheme

If the goods are eligible to move under UKIMS, the information the trader will need to provide will be similar to what they provide now, as well as the authorised UKIMS and Economic Operators Registration and Identification (EORI) numbers associated with the movement.

Traders should discuss the information they require with the parcel carrier and how they would like to be told this information.

If their parcel is not eligible to move under UKIMS, or neither the sender or receiver are authorised under UKIMS, then they:

• will be asked to provide additional information
• may have to pay the applicable rate of duty after any claims of preference or reliefs

Making Tax Digital (MTD)

MTD for Income Tax — one year to go

MTD for Income Tax will help sole traders and landlords stay on top of their tax affairs by streamlining the end of year filing process. Customers will need to use MTD compatible software to keep up to date digital records and send closer to real-time updates of income and expenses to HMRC each quarter.

These changes will help customers to:

• pay the right amount of tax
• reduce the chance of making errors
• have a clear view of their finances
• plan for the future

They will then need to submit their end of year tax return. But, as they have already submitted a lot of their information in the quarterly updates, it will be easier for customers to manage their tax affairs in a more straightforward manner.

Information about software that works with MTD for Income Tax helps customers find the product that best suits their needs and budgets, such as software that is targeted at landlords or specific trades. As more MTD compatible products come to market, they will be added to GOV.UK to make sure customers are equipped with the relevant information for a smooth transition to MTD for Income Tax.

Making Tax Digital thresholds

MTD for Income Tax will be introduced in phases from April 2026.

Customers with gross income from self-employment and property over:

• £50,000 will need to use MTD for Income Tax from April‌‌‌ 2026
• £30,000 will need to use MTD for Income Tax from April‌‌‌ 2027

As announced in the Spring Statement, customers who have gross income from self employment and property that totals over £20,000, will now also need to use MTD for Income Tax from April 2028.

Signing up for MTD testing

Volunteering to test the service is the best way for you and your clients to prepare for this change.

Taking part in testing means you will:   

• stay up to date with the service and be able to test your own business processes before April 2026
• be ready to support clients when the service must be used
• become familiar with the software you’ll use with your clients

You can sign up your client for testing now. You will be asked some questions to confirm whether your client is eligible. More information is available on the benefits of Making Tax Digital for Income Tax.

Agent services account (ASA)

To take part in testing, you will need to be registered with HMRC for an agent services account

If you already have an ASA and existing client authorisations for Self Assessment in your HMRC Online Services for agents account, adding those authorisations to your ASA should be seamless.

Go to the ‘client authorisation’ section on your ASA homepage and select ‘add existing Self Assessment authorisations to this account’. You will be asked for each Government Gateway user ID you use when filing for your clients, so have those details ready before you start. You will also be able to see the Government Gateway user IDs we already know about.

If you are signing up a new client, you can ask them to authorise you in your ASA using the digital handshake.

Once you have added authorisations to your agent services account, you can continue to manage Self Assessment for your clients in the usual way. You will not lose any permissions or access to our online services.

If you take on new Self Assessment clients under any of the Government Gateway accounts you have told us about, we will automatically add the client authorisations to your ASA.

Enabling multiple agents

New functionality enables MTD for Income Tax customers to authorise multiple agents to act on their behalf at the same time. For example, a customer may want to instruct a bookkeeper to fulfil their quarterly updates and an accountant to finalise their overall tax position and submit their Self Assessment tax return.

Read about how to choose agents for Making Tax Digital for Income Tax.

There are 2 agent roles.

Main agents have full access to MTD for Income Tax services and will be able to see and do everything that their client can online with a few exceptions. They will have the same access to MTD for Income Tax services as existing agents. Customers can only have one main agent at any given time.

Supporting agents have restricted permissions and can only undertake certain MTD for Income Tax services on their client’s behalf. They can only interact with HMRC on a client’s behalf for sole trader and property businesses. Customers can have one or more supporting agents.

Our agent toolkit includes more useful information and resources to help you prepare your business and your clients for MTD for Income Tax. Read about getting ready for Making Tax Digital for Income Tax for more information.

HMRC agent services

Paying your PAYE and VAT bill by Direct Debit

You can make your PAYE or VAT payments simpler by signing up to pay by Direct Debit. Direct Debit is the most accurate way to pay your PAYE and VAT tax bills, reducing the burden of having to make the payment yourself, so you do not need to work out how much you need to pay or miss a payment deadline.

Payments are automatically collected from your bank account based on the information you provide in your:

• Full Payment Summary and Employer Payment Summary for PAYE tax bill
• VAT return

There are 2 payment options you can:

• pay your PAYE bill by Direct Debit
• pay your VAT bill using Direct Debit

Updates to the Tax Agents Handbook

We told you recently about our new tax agents handbook.

Acting on your feedback that it was difficult to find this information, we developed this to:

• provide one central place to find guidance
• use HMRC’s services
• contact HMRC

The handbook’s been developed with support from Guidance Strategy Forum members and a number of agents.

As a result of feedback, we have recently:

• added a dedicated ‘getting started’ guide to support agents’ getting registered
• improved the order of content, to mirror agents’ journey with HMRC following registration and replaced alphabetical listing with ‘most used’ pages
• improved chapter summaries to help agents easily identify what each chapter contains
• improved tools and support to provide quick access to agent services and technical support

We are still exploring

• supporting videos
• agent roadmaps (support for agents on when to self-serve and when to contact us)
• improving handbook navigation

What’s new

We’ve added our new agent resolution service which launched on 31 March 2025. You can find information and how to contact the service, which deals with Self Assessment and PAYE queries for individuals in the contacting HMRC, Check progress and services levels section of the agent handbook.

We will continue to improve the handbook using your feedback.

Providing feedback

You can provide feedback by using the short survey on the tax agents handbook page.

You can also send an email to hmrcguidanceteam@hmrc.gov.uk.

If you would like to join the Guidance Strategy Forum or be part of a working group to actively support us developing the handbook further, contact us.

Tips for when you must use post

Going online can provide instant access to information and is much quicker and cheaper than calling or writing to us.

Online forms are less likely to be rejected due to errors or missing information and they’re often processed quicker.

If you need to send something to HMRC by post, to avoid delays, use the following tips to make sure your mail:

• reaches the right place
• can be scanned and processed smoothly

You must:

• use the right address and put the full postcode on the envelope so it reaches the right place — read about our postal addresses and contact information
• include taxpayer identifiers — add your client’s name, National Insurance number and Unique Taxpayer Reference (if they have one) on the first page, making sure they’re clear and prominent
• add the key topic on the front page — this helps us direct post to the right team after it’s been scanned
• only include necessary documents — send the required forms and information and only include supporting documents if they’ve been asked for or are needed — this includes covering letters, which should only be provided if essential additional information is needed over and above the forms being returned
• staple documents together — make sure documents for the same taxpayer are stapled together so pages do not separate and merge with other taxpayer information — check double-sided prints do not include information from other clients
• avoid using ‘complaint’, unless it’s a complaint — only label correspondence as a ‘complaint’ if it’s a genuine complaint — complaints are diverted to the complaints team and not to processing area which may cause delays
• do not send multimedia such as USB sticks, hard drives or other digital media unless specifically requested
• include a clear return address for valuable items — if enclosing items such as birth certificates or passports, make sure you include a clear return address with the full name and postcode to make sure their safe return
• use registered or recorded delivery — we recommend that you use a tracked mail service — HMRC do not sign for it when it arrives, but we will scan the barcode and add it to our internal tracking system for a full audit trail — if you need to know when your mail has reached us, check the status of your delivery with the service provider you used
• check forms are complete, correct and signed — make sure any print and post forms are complete, correct and signed before posting — remember, if you can do it online it will be quicker

More guidance is available on the tax agents handbook page. You will find manuals, forms and helpsheets by theme, along with links to the latest Agent Update.

Protecting customer data against malware

Malicious software or ‘malware’ is any software intentionally designed to cause harm. Malware can steal, alter, or delete the data on an infected device. 

As tax agents, you hold sensitive data for your clients and your own business. This makes you an attractive target for criminals. If your device becomes infected, a criminal may have access to everything you use it for, including your agent online services account (AOSA) or agent services account (ASA).

Malware can take the form of: 

• email attachments — attackers often send phishing emails with seemingly harmless attachments, such as PDFs or Word documents — these files contain hidden Remote Access Trojans (RAT) payloads that activate when opened

• malicious links — RATs can be embedded within URLs shared through emails, messages, or social media — clicking these links triggers the download and installation of the trojan — remember, these email attachments and links can appear to be from genuine companies, friends, colleagues or relatives

• malicious downloads — RATs can be bundled with legitimate software or fake browser updates downloaded from compromised or malicious websites

• exploiting vulnerabilities — attackers may exploit vulnerabilities in software or operating systems to deploy RATs

What you can do to implement robust security measures

To help protect your devices and client information you should:

• check that any software you use is automatically updated on a regular basis — apply the updates and do not ignore or delay them

• avoid using software that is no longer receiving security updates

• check that your antivirus protection is up to date and that you regularly run and review scans

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

• use strong passwords

• change your password if your device has been compromised

• become ‘Cyber Essentials’ certified

• visit the National Cyber Security Centre for useful guidance and resources

If you believe your agent account has been suspended or compromised

HMRC monitors transactions on customer accounts for suspicious activity. If we believe an AOSA or ASA 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 telephone 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

Read our article in the March 2025 Issue of Agent Update ‘Working together to combat fraud and protect customer data’.

Report suspicious HMRC emails, texts, social media accounts and phone calls.

Self Assessment repayments no longer available through telephone or webchat  

On Thursday 27 March 2025, HMRC paused the issuing of Self Assessment repayments for new claims over the telephone (including the Agent Dedicated Line) and through webchat until further notice. This measure is part of enhanced security controls introduced in response to an ongoing increase in suspected fraudulent repayment attempts.  

Agents can continue to claim client refunds online through their agent account. Agents who are unable to access their online account are advised to contact our Online Services Helpdesk on 0300 200 3600. Digitally excluded customers will need to apply by post.  

If clients contact us directly, they will be advised that the best way to claim refunds is online through their online tax account or through their agent. 

The majority of requests relating to existing Self Assessment repayments can continue to be made through telephone and webchat. A small number of existing claims may be impacted by our enhanced security controls. In these limited circumstances customers will also need to claim their refund online. 

 Telephone and webchat can continue to be used for all other Self Assessment enquiries. 

Have your say — enhancing HMRC’s ability to tackle tax advisers facilitating non-compliance

We wanted to remind all agents that HMRC is currently running a consultation. This explores options to enhance HMRC’s powers and sanctions to take swifter and stronger action against professional tax advisers who facilitate non-compliance in their client’s tax affairs.

The government and HMRC are keen to hear from anyone who may receive or provide tax advice or offers services to third parties to assist compliance with HMRC requirements.

Read the consultation on enhancing HMRC’s ability to tackle tax advisers facilitating non-compliance.

You can respond through an online form, an email, or by post. All these contact details are available within the consultation document.

If you want to respond, you need to do so before 11.59pm on 7 May 2025.

Agent forum and engagement

Taxpayer removed from Self Assessment

Members of the Issues Overview Group (IOG) have asked for a discussion on allowing individuals to elect to remain in Self Assessment, even if they do not meet the Income Tax Self Assessment criteria. HMRC policy colleagues are going to engage with IOG members to explore this suggestion in more detail and consider potential impacts on both HMRC and our customers.

Missing PAYE codes

We are investigating the issue of missing PAYE codes following evidence provided by members of the IOG. We welcome any additional examples you may have to aid our investigation, including details of the page or which service agents are using.

Agents are asked to continue to use our technical support with HMRC online services to report cases of missing PAYE codes. You may also wish to copy your Professional Body, who can then raise the case directly with HMRC. Details of the evidence required can be found in Issue 129 of Agent Update.

Agent and client reference linking emails

Our IT Technical Team have now confirmed that funding for the required change has been agreed. The implementation date for this change is June 2025.

Research and Development advance clearance consultation

At Spring Statement, the government published a consultation on potentially widening the use of advance clearances in Research and Development (R&D) tax credits. The consultation seeks views on potential options for a revised system of advance clearances to reduce error and fraud in the R&D reliefs, provide certainty to businesses, and improve the customer experience.

We would appreciate feedback from you and your clients.

Read the Research and Development consultation document. The consultation will close on 26 May 2025.

Contact Information for professional and representative bodies

• AAT: wt@aat.org.uk

• ACCA Jason Piper: jason.piper@accaglobal.com

• AIA David Potts: workingtogether@aiaworldwide.com

• ATT: atttechnical@att.org.uk

• CIMA: prof.standards@cimaglobal.com

• CIOT Technical: technical@ciot.org.uk

• CIPP Lora Murphy: Lora.Murphy@cipp.org.uk

• CPAA Alison Hale: ahale@cpaa.co.uk

• IAB: Compliance@iab.org.uk

• ICAEW Caroline Miskin: Caroline.miskin@icaew.com

• ICAS Tax Team: tax@icas.com

• ICB Steven Worrall: steven@swaccountants.co.uk

• ICPA: admin@icpa.org.uk

• IFA: membership@ifa.org.uk

• VATPG Ruth Corkin: Ruth.corkin@hhlp.co.uk