HMRC have published their August 2024 Agent Update. This contains developments and updates relating to the UK taxes that they collect, so is broader in scope than the Employer Bulletin.
We highlight some of the issues covered:
- Tax year 2023/24 is not over if you have PAYE Settlement Agreements (PSAs) and this section reminds agents of the liability deadline (19 or 22 October 2024). Further, it links to the ‘Tell HMRC the value of items in your PAYE Settlement Agreement’ page where you should submit your PSA calculations online. If the PSA payment is made by the deadline without submitting a calculation, HMRC’s systems will not know what the payment is for
- The, seemingly, monthly reminder that basis period reform is now the default for all sole trader and partnership businesses. They must report their profits on a tax year basis, beginning with the Self-Assessment return due by 31 January 2025 (covering tax year 2023/24). However, although this is the default, clients can opt out and there are some handy links to information about transition profit and Overlap Relief
- A section advising that the term ‘Earlier Year Update (EYU)’ (for adjustments to previous tax years) is still being used in the Liabilities and Payment Viewer even though this has ceased to be a valid RTI submission. The Viewer will now display the wording ‘End of tax year adjustment’, though amendments for tax years 2019/20 and before will still show as being made by an EYU
- HMRC are reminding payroll processors that they must operate a Student Loan start notice (the SL1 or PGL1) even if their earnings are below the threshold to make repayments
- HMRC is encouraging agents to voluntarily sign their clients up to Making Tax Digital for Income Tax (MTD ITSA), reminding that it will be a mandatory way of reporting for some self-employed individuals and landlords from April 2026. HMRC have already written to employers that are signed up for Making Tax Digital for VAT (MTD VAT) saying they may be eligible, so be aware you may receive communication from some clients. Of course, MTD ITSA requires sending quarterly updates to HMRC using compatible software and you or your client may not be ready to sign up ahead of mandation
- There are some helpful ‘hints and tips’ for the completion of the 64-8 agent authorisation form. Simple things such as ensuring the correct version is used and providing the correct agent codes for the relevant tax regimes. Yet, all the tips ensure HMRC can process the authorisation request without delay
For Bookkeeper
The Agent Update is a valuable resource for members, recognising that bookkeepers do more than payroll. ICB recommends reading August’s edition.
