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:
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 and we draw your attention to the following topics:
- The first topic covers the phased introduction of the payrolling of expenses and benefits, starting in April 2027. ICB covered this on July’s Wages Wednesday, though the article expands on this by saying a new voluntary service (to payroll items that are not mandated in Phase 1) will open in November 2026 and may include an option to voluntarily report Class 1A National Insurance Contributions. Stay with ICB’s Wages Wednesdays for updates on this topic;
- There is another section which repeats previous communication that the option to pay voluntary Class 2 National Insurance contributions for periods abroad was removed from April 2026 (tax year 2026/27 onwards). Again, you should remind clients, point them to HMRC’s guidance and advise HMRC will start writing to individuals in July or August 2026 if they are impacted
Other tax updates in this section include information on Capital Gains Tax.
Making Tax Digital (MTD IT)
This section reminds agents of the first MTD IT quarterly update deadline (07 August 2026) and points to their ‘Update Special’ published on 7 July 2026.
There is also a section ‘Student loans within Making Tax Digital’ which details how the quarterly update will contain estimates of the Student Loan liability. These are not payable to HMRC. The actual liability will be calculated by the final tax return submitted after the fourth quarterly update and will be payable by 31 January (2027 for tax year 2026/27) – see ‘Tell HMRC about a student or postgraduate loan in your tax return’ for more information.
HMRC Agent Services
ICB highlights the topics contained in this section:
- The first section details how HMRC are currently recovering Winter Fuel Payments (Pension Age Winter Heating Payment in Scotland) via the tax code, i.e. payments received in 2025/26 are being recovered in 2026/27. Where the taxpayers is in Self-Assessment, the 2025/26 payment will be recovered via the tax return, due for submission by 31 January 2027. The section also links to areas where individuals can opt out of future payments if they are aware their income will be over £35,000 and subject to recovery – see the DWP and mygov.scot websites for details;
- There is a reminder that the Self-Assessment payment on account deadline is 31 July 2026 and the advice to remind clients;
- There is a section about the 18 August 2026 tax adviser registration deadline which includes a sub-heading ‘Complex organisational structures’. Within this is the line ‘Businesses relying on HMRC guidance in good faith to decide that they do not need to register will be treated as compliant, with no sanctions or penalties, even if HMRC later clarifies that the business should register’. This is worthwhile clarification, though ICB urges members to use the ‘Check if and when you need to register as a tax adviser with HMRC’ online tool; and
- There is a reminder about agent Multi-Factor Authentication and how an early activation date can be requested (see the section within the Tax Agent's Handbook), otherwise, this will be activated in the window 28 September 2026 to 15 October 2026
This section also includes information about Corporation Tax late filing penalties and how HMRC’s systems will not be updated until the end of July 2026 and automatic notices have been paused. This does not mean a pause to the penalty regime, just a pause to issuing notices.
For Bookkeepers
As always, ICB recommends reading the entire Update. There are some useful tips in July’s edition.