Agent Update April 2026

HMRC have published their April 2026 Agent Update and we detail the relevant issues covered:

Unlike the Employer Bulletin that focuses on payroll news and information, the monthly Agent Update looks at developments and changes to legislation and allowances relating to all UK taxes under the following headings:

• Tax;
• Borders and trade;
• Making Tax Digital; and
• HMRC Agent Services

ICB covers the payroll-related issues but suggests that the entire Update is read as this is more reflective of the work of bookkeepers than the bi-monthly Bulletin.

Tax 

This section covers a wide range of taxes and we draw your attention to the following payroll-related topics:

• The first topic covers increases to the rates for the National and Living Minimum Wage and is almost a duplication of the same information in April’s Employer Bulletin.  It links to the GoToStage.com website that houses HMRC’s collection of recorded National Minimum Wage videos;
• The next section also duplicates the Bulletin advising that the Small Employers’ Relief compensation rate increased from 8.5% to 9% for tax year 2026/27.  This time, though, it links correctly to the ‘Rates and thresholds for employers’ document for the current tax year (2026/27);
• The next section covers the removal of the tax relief for non-reimbursed homeworking expenses (also covered in the Bulletin);
• There is a repeat of information about the 2026/27 Student Loan thresholds and rates which contains a link to the latest Starter Checklist (updated for 2026/27 and onwards);
• The next section covers HMRC’s ‘Digital tax code changes trial’ which has been in place since March 2026.  This is designed to simplify the language used to communicate tax code changes, though is not used for all and applies only where the taxpayers has ‘simple tax circumstances’; and
• Like April’s Employer Bulletin, there is a reminder about the SSP changes from 06 April 2026 and the P11D and P11D(b) reporting deadlines for tax year 2025/26

Making Tax Digital (MTD IT) 

This section covers two topics: 

1.     ‘Making Tax Digital is here’ which contains lots of useful links that ICB has publicised; and

2.     A section on how to notify HMRC if there is no obligation to use MTD IT. For example, based on 2025/26 information it is discovered there is no MTD IT reporting liability, possibly because income sources have changed or ceased

HMRC Agent Services 

ICB highlights some of the topics are contained in this section:

• Updated guidance on HMRC’s enhanced powers to tackle tax adviser facilitated non-compliance;
• Agent services to help with unresolved queries;
• Self-Assessment Individual and Partnership specials and exclusions 2026 which sets out whether taxpayers can file a paper tax return rather than an online one; and
• The introduction of multi-factor authentication (MFA) for agent accounts with a link to the Tax Agent’s Handbook which contains more information 

For Bookkeepers

This is the first Update of tax year 2026/27 and does repeat information contained in April’s Employer Bulletin.  However, ICB recognises these publications have different readers and this is understandable.

ICB recommends reading the entire Update, perhaps focusing more on the Agent Services part, especially the services to help agents resolve queries that remain unresolved.