HMRC have published their June 2025 Agent Update. This monthly newsletter highlights updates and developments relating to taxes that HMRC collects, i.e. not taxes that are devolved to Scotland and Wales.
We highlight some of the payroll topics covered under the headings used:
Tax
In this section there are three topics to mention:
1. The 2024/25 Self-Assessment Specials Document for individuals, partnerships and trusts are produced for software developers and set out whether a paper tax return should be filed rather than an online one. HMRC is advising that tax agents might also find these update documents useful;
2. HMRC are writing to businesses where their systems recognise that between April 2019 and April 2023, individuals may have received a director’s loan that has been written off or released and may not have declared the amount as income on their Self-Assessment tax return. There is a requirement for these to be declared as a benefit and HMRC advises that the Digital Disclosure Service (DDS) should be used or the ‘make changes to clients’ returns, depending on the tax year that has not been declared correctly; and
3. HMRC is advising they are writing to approximately 100,000 individuals after detecting unauthorised access to online tax accounts. Most of these are not represented by an agent, however, you need to be aware that the letters advise the individual to contact their agent where they are represented
Making Tax Digital for Income Tax (MTD IT)
As announced in the 2025 Spring Statement, the MTD IT phasing timetable is as follows:
- 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
This section highlights:
HMRC Agent Services
This section covers three topics:
1. ‘Tax advice — do not let your clients get caught out by tax avoidance’ points to HMRC’s don’t get caught out campaign which is all about advising the tell-tale signs of bad tax advice and spotting the signs of tax avoidance;
2. There is another section about the benefit of filing Self-Assessment tax returns early (a worthwhile repeat of information contained in the May 2025 Update). There is also important information about the need to register and reactivate Self-Assessment accounts early, if necessary; and
3. Information about enhancing the online complaints service for agents. This is reference to the Personal Tax Query Resolution Service for Agents within the 'Contacting HMRC' section of the Agents Handbook. This part was updated to highlight that the service is not available for employer related queries, only PAYE and Self-Assessment queries for individuals
For Bookkeepers
As always, ICB always recommends reading the Agent Update in its entirety and the advice in June is no different. The Update recognises more than the Employer Bulletin that the bookkeeping role may involve more than the provision of payroll services.
