We detail some of the relevant issues from HMRC’s August 2026 Agent Update.
HMRC’s Agent Update is a monthly publication, unlike their bi-monthly Employer Bulletin. The Update focuses on developments and changes to legislation and allowances relating to all UK taxes rather than just payroll-related issue. It has the following headings:
There is also a section ‘Borders and trade’ which reflects HMRC’s remit of revenue and customs.
ICB suggests reading the entire monthly Update as this is reflective of the varying work of bookkeepers.
Tax
This section covers a wide range of taxes:
- The first topic covers changes to the current process for applying for an Inheritance Tax (IHT) reference number which means the provision of an E-Mail email address. The second topic also covers IHT, specifically HMRC’s latest letters to agents and individuals aimed at reporting correctly;
- ICB will continue to cover the phased introduction of the payrolling of expenses and benefits, starting in April 2027, including the ‘actions for agents to take now’ which HMRC covers in August’s Update;
- HMRC advise they have started the P800 process for tax year 2025/26, assessing whether individuals have paid the correct Income Tax and sending letters where the reconciliation shows an under or overpayment. Individuals and agents should remind themselves of the process and view the Gov.UK guidance;
- HMRC advises two updates to their Guidelines for Compliance (GfC) series – the new GfC19 has been published that covers help with short-term business visitors and GfC18 has been updated with information about the temporary reduced rate of VAT for children’s meals, tickets and family attractions;
- HMRC reminds agents they have updated several Double Taxation forms and guidance relating to UK Real Estate Investment Trusts (REITs); and
- HMRC advise they have updated their Corporation Tax system to issue the correct penalty notices, as late filing penalties increased on 01 April 2026 (but their system was not updated)
Making Tax Digital (MTD IT)
This section is all to do with the actions employers an agents should take if the first MTD IT quarterly update deadline (07 August 2026) was missed.
It also advises you can now apply for an exemption from MTD for clients who would otherwise need to start using MTD for Income Tax from 06 April 2027.
HMRC Agent Services
ICB highlights the topics contained in this section:
- The first section details how HMRC are consulting on the current tax treatment of predevelopment costs (for Corporation Tax);
- HMRC advise the online Self-Assessment tax return will be pre-populated with Child Benefit information, if HMRC hold the payment information. This will ensure the High Income Child Benefit Charge (HICBC) is calculated correctly and reported on time;
- HMRC also provide a Multi-Factor Authentication (MFA) update, advising the final activation window approaches (from 28 September 2026 to 15 October 2026). This applies if you did not submit a request for early activation; and
- The next tax adviser registration window has opened. This applies to tax advisers who have a Corporation Tax or Self-Assessment agent account but do not currently hold an Agent Services Account (ASA)
Agent Engagement
ICB points you to this section, specifically the part which asks for support in improving Gov.UK guidance. HMRC is looking for agents who support customers to claim a tax refund through Self-Assessment.
For Bookkeepers
As always, ICB recommends reading the entire Update.