HMRC have published their July 2025 Agent Update. This monthly newsletter highlights updates and developments relating to taxes collected by HMRC. Therefore, it does not cover taxes devolved to Scotland and Wales.
We highlight some of the payroll topics covered under the headings used:
Tax
In this section there in one topic to mention and this is about the error relating to Self-Assessment taxpayers who have been charged Class 2 National Insurance contributions (NICs) for the 2023/24 tax year. Some taxpayers with self-employed profits above £12,570 have seen a Class 2 NICs charge of £358.80 added to their accounts in error.
HMRC say the IT error in their systems will not be corrected until September 2025. So, taxpayers might continue to receive incorrect SA302 calculations. HMRC apologises for the inconvenience this has caused and advise that any payment that has been made will be refunded. Taxpayer records for tax year 2024/25 returns should not be affected by this; however, this is something to look out for.
Making Tax Digital for Income Tax (MTD IT)
In this section, HMRC again point to the MTD IT phasing timetable:
- 2026 - gross income from self-employment and property over £50,000;
- 2027 - gross income from self-employment and property over £30,000; then
- 2028 - gross income from self-employment and property over £20,000 (pending legislation)
This section highlights a number of things, all of which are worth highlighting:
This is not forgetting the recorded YouTube video featuring 2025 Summit speakers Rebecca Bennyworth and Craig Ogilvie from HMRC.
HMRC Agent Services
This section highlights that tax agents are frequently targeted by online fraudsters because they hold extensive sensitive client information. It says agents can stay secure by using strong passwords and changing them regularly. It also contains guidance for setting up strong passwords and links to the Uk Government’s ‘Stop, Think, Fraud’ campaign webpage.
Also, as if you need a reminder, remember 31 July 2025 is the date for the second Self-Assessment Payment on Account. These are payments towards the next tax liability (including Class 4 National Insurance for the. You may want to remind your clients of this date.
For Bookkeepers
As we say each month, the Update recognises that the role of bookkeepers and agents may involve more than providing payroll services. Therefore, ICB recommends reading the publication in its entirety.
