HMRC have published their May 2026 Agent Update and we detail some of the relevant issues covered:
Tax
This section covers a wide range of taxes and we draw your attention to the following payroll-related topics:
- The first topic covers the UK Government’s support to individuals and employers during the ‘Iran crisis’. This details Fuel Duty, Red diesel duty and Heavy Goods Vehicle (HGV) Vehicle Excise Duty (VED) reductions plus increases to the Approved Mileage Allowance Payments (the 45p to 55p rate only);
- The next section reminds employers the option to pay voluntary Class 2 National Insurance contributions for periods abroad was removed from April 2026, tax year 2026/27 onwards. The action for agents is to remind their clients, if necessary; and
- There is a reminder that, from April 2026, Construction Industry Scheme (CIS) contractors are legally obliged to file a CIS return every month, including nil returns. Of course, if a return is not filed, HMRC may issue a later filing penalty
Other tax updates in this section include Corporation and Capital Gains plus a link to an open consultation about HMRC’s plans to introduce mandatory online filing for amended Company Tax Returns from 01 April 2027.
Making Tax Digital (MTD IT)
This section includes the following topics:
1. Authorise and connect your software to HMRC.
2. Check you have selected the right accounting period remembering it automatically defaults to 06 April to 05 April, and you cannot change it after you send your first quarterly update;
3. Use the right software to start creating digital records of your client’s income and expenses from self-employment and property.
As always, the MTD section is full of links to further resources.
HMRC Agent Services
ICB highlights the topics contained in this section:
- HMRC have published Self-Assessment software specifications for Individuals, Partnerships and Trusts and Estates. They have been updated to indicate the situations when a paper tax return should be filed rather than an online one;
- There is a section ‘Look twice to spot bad tax advice’ which links to HMRC’s ‘Don’t get caught out’ campaign. This encourages contractors working through umbrella companies to take a closer look and watch out for tax avoidance;
- There is the annual reminder ‘Why filing tax returns early works for you and your clients’;
- In the Self-Assessment repayments section, HMRC clarifies the tax repayment process and why a client’s Self-Assessment statement may continue to show the amount as a credit rather than as a repayment in progress;
- There is a section ‘Self-Assessment after bankruptcy’ which explains that agents should not use the use the pre bankruptcy Unique Taxpayer Reference (UTR) for returns submitted after the bankruptcy year. The UTR expires at the end of the tax year in which a client is declared bankrupt and should not be used after that year;
- HMRC say they are making improvements to help resolve personal tax queries more easily and quickly. This section is worth reading if you do use some services to contact HMRC, for example, webchat or the Agent Dedicated Line. It is helpful HMRC detail the most appropriate channel for agents;
- In the section ‘Clients can claim a tax refund in minutes’, HMRC detail that agents cannot claim repayments on behalf of clients. Therefore, if you are aware that a client is due a refund, it is helpful to know how to claim this given they are not automatic;
- Lastly, and as outlined by ICB, tax adviser registration is open. This section links to the guidance ‘Check if and when you need to register as a tax adviser with HMRC’ and ICB recommends members digest this and register – no registration means you will not be able to interact with HMRC on behalf of your clients
For Bookkeepers
We suggest the final article on tax adviser registration is the hot topic now. However, as always, ICB recommends reading the entire Update.
