ICB details the relevant issues from HMRC’s October 2026 Agent Update.
HMRC’s Agent Update is published monthly compared to the 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:
In October 2026, there is no ‘Borders and trade’ section.
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 tips to ensure clients’ company tax returns are filed and processed by HMRC without delay (the CT600);
- There is information in the second topic about the inclusion of pensions for Inheritance Tax (IHT) purposes from April 2027; and, importantly
- There is information about the new voluntary payrolling service that will be live from November 2026. This will be to register to process taxable expenses and benefits through the payroll for the items that are not included in Phase 1. As a reminder, employers will be required to pay Class 1A National Insurance Contributions in real-time on any taxable expense and / or benefit, regardless of whether this is included in Phase 1. ICB suggests this is a consideration for choosing to voluntary payroll or, indeed, withdrawing from voluntary payrolling
Making Tax Digital (MTD IT)
This has one section which deals with the upcoming Making Tax Digital (MTD) for Income Tax deadline (07 November 2026). ICB also points to HMRC’s September 2026 Update and the ‘special’ Update issued in July 2026.
HMRC Agent Services
ICB highlights the topics contained in this section:
- The first section advises that HMRC will commence writing to taxpayers who owe Income Tax on 2025/26 bank and building society interest. The tax calculation letters will either be the P800 (collected via PAYE) or the PA302 (Simple Assessment). Note that where interest is more than £10,000, your client needs to register for Self-Assessment;
- The Update advises that Multi-Factor Authentication (MFA) is now live on all agent service accounts and points to information on the Tax Agents Handbook;
- As with September’s Update, there is another reminder about Self-Assessment, though this time along the theme it is never too early to file (for the 2025/26 tax year);
- HMRC advise that Talk Money Week 2026 (from 02 November to 06 November 2026) is time to encourage taxpayers to use the app;
- Note HMRC has temporarily paused Agent Reference Number (ARN) checks until 17 November 2026 when contacting HMRC through telephone or webchat. This is where HMRC want to check they have registered for an Agent Services Account (ASA);
- HMRC advise that a Research and Development (R&D) advance assurance pilot launched on 18 May 2026 and point to Gov.UK guidance which should be read before claiming R&D tax relief in the Corporation Tax Return;
- HMRC advise they have implemented a new automated payment process to help issue National Insurance refunds more quickly;
- There is a new service issues page on Gov.UK which highlights all current service problems together in one place; and, lastly
- HMRC encourage feedback on their manuals and advises this can be given at the bottom of all pages on GOV.UK or via the ‘Contact GOV.UK’ form. This appears to be a monthly call for feedback and ICB encourages members to provide this
Agent Engagement
ICB points to this section which contains one topic which is about HMRC looking for agents who support small business customers with business expenses to help improve guidance on Gov.UK. Their survey asks for agents’ experiences helping customers with expenses, including the usefulness, clarity and accessibility of the GOV.UK expenses guidance.
ICB recommends answering the questions in this survey with HMRC’s assurance responses will be anonymised, kept confidential, used only for research purposes and retained in line with data protection law. Plus, there is the opportunity to be entered into a draw for a £75 voucher.
For Bookkeepers
As always, ICB recommends reading the entire Update.
The payment of Class 1A National Insurance in real-time from April 2027 is a cost implication. As such, ICB reiterates that members should consider voluntary payrolling or, indeed, withdrawing from voluntary payrolling where an element is not in Phase 1 (cars, vans and medical benefit).