Unlike HMRC’s bi-monthly Employer Bulletin, the Agent Update is a monthly publication. 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:
There is also a section ‘Borders and trade’ which reflects HMRC’s remit of revenue and customs.
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 the deadline for submitting Employment Related Securities (ERS) end of year returns (06 July 2026) and the late filing penalty regime that is now in place. ERS returns are also covered in the second topic which advises new versions from April 2027, as detailed in HMRC’s July 2026 ERS Bulletin;
- If you or your clients apply to HMRC for a certificate of residence to claim tax relief in another country (if Income Tax is paid on foreign income in the UK), HMRC detail how this application can be made online. This service also allows forms from overseas tax authorities to be uploaded that confirm the withholding of tax;
- The next topic advises HMRC will start sending forms P800 (tax calculations) or PA302 (Simple Assessment notices) to taxpayers where their systems indicate Income Tax is due on bank and building society interest. This will be due if the Income Tax is not collected via PAYE or Self-Assessment;
- Be aware that a new tax (the Gambling Betting Duty) comes into force from April 2027. This is a tax on bookmakers’ profits from UK bets. The important thing to take from the Agent Update is that where there is a liability, there is a requirement to register with HMRC as well as paying the Duty;
- As a reminder, The Income Tax (Additional Information to be included in Returns) Regulations 2025 require more information to be sent on Self-Assessment returns relating to directorships, close companies, and dividend income. The article in the Agent Update points to HMRC’s guidance on how to complete a return;
- If you have clients that must settle a ‘loan charge’ (which applies to disguised remuneration loans), the Update points to a HMRC’s loan charge settlement scheme. This is a simplified calculation of the charge which may result in HMRC offering a ‘settlement offer’ which may be lower than previous calculations; and
- The last topic in this section covers an update to HMRC guidance on the exception from payrolling benefits which will apply to Globally Mobile Employees (GME). Further, it clarifies that Class 1A National Insurance Contributions must be calculated and paid on all benefits that are payrolled from April 2027, even if this is done on a voluntary basis. ICB has covered both topics and will update members further in October 2026’s Wages Wednesday
Making Tax Digital (MTD IT)
This has two sections:
1. This section advises agents to ‘Get your clients ready for the next Making Tax Digital for Income Tax deadline’ on 07 November 2026. From September 2026, HMRC will begin automatically signing up taxpayers if they have not been but HMRC’s systems believe they are in scope; and
2. HMRC’s development of an authorised client list within the Agent Services Account (ASA) showing clients using Making Tax Digital (MTD) for Income Tax. This aims to be delivered by Summer 2027 and ICB agrees with HMRC that this will improve visibility as MTD expands
HMRC Agent Services
ICB highlights the topics contained in this section:
- The first section points to a range of resources to help spot bad tax advice and watch out for tax avoidance schemes;
- HMRC advise that from October 2026 they will begin writing to CIS-registered contractors where they have identified errors in their monthly returns. The section points to areas for them to check and the CIS 340 guidance;
- HMRC are promoting a new YouTube video on the tax rules for non-UK domiciled individuals which explains how the remittance basis of taxation was replaced by the foreign income and gains (FIG) regime from April 2025;
- There is the annual reminder that taxpayers new to self-Assessment must register on or before 05 October 2026 (for the 2025/26 tax year);
- HMRC advise that the Administrative Burdens Advisory Board 'Tell ABAB' report for 2025/26 has been published. ABAB is an external and independent body from HMRC, supporting them to improve the tax customer experience for small businesses;
- There is a section on cryptoassets and deceased estates with links to HMRC’s Inheritance Tax Manual and Cryptoassets Manual;
- The temporary reduced rate of VAT (the Great British summer savings) ended on 01 September 2026 and HMRC point to their VAT compliance controls guidance (GfC8) which contains information about the reversion to the standard rate of VAT;
- HMRC provides an update on the recovery via PAYE and Self-Assessment of Winter Fuel Payments for 2026/27 and 2027/28. They also link to the document ‘Winter Fuel Payment’, specifically the section ‘If your income is over £35,000’. This does not contain new information;
- There is a section concerning the final agent Multi-Factor Authentication (MFA) window that opens on 28 September 2026. Running until 15 October 2026, unless an agent has opted for a specific date, HMRC will activate MFA to Government Gateway accounts on Monday to Thursdays in this period;
- There is a link to HMRC’s online tool which allows you to check filing dates for the Construction Industry Scheme (CIS), PAYE employers, Self-Assessment and VAT. ICB has publicised this tool to members;
- In the section entitled ‘Client allocation enhancements’, HMRC talk about imminent testing of a facility that will allow the bulk allocation of clients to a team member within a single Online Services for Agents Account. This will be an interesting feature and ICB wonders if reallocations / redistributions of clients to team members forms part of the testing, as things change. This is one to watch for;
- There is the promotion of HMRC’s app, specifically to ‘help your clients plan for retirement’. Helping clients to plan for retirement is not part of a bookkeeper’s duties, though it is good to know about the app’s functionality;
- Form P87 is used by taxpayers to claim tax relief on expenses incurred in an employment, including mileage. The latest version has the reference ‘06/26’ and was introduced following changes to Approved Mileage Allowance Payment rates in May 2026 (for tax year 2026/27). HMRC advise that the old version (reference ‘10/23’) will not be accepted after 01 November 2026; and
- There is a call for users of HMRC’s manuals to give feedback on whether they are useful or need improvement. ICB repeats HMRC’s message that members can give feedback at the bottom of each Gov.UK page visited or using the dedicated ‘Contact GOV.UK’ form
Agent Engagement
ICB points to this section which contains two topics:
1. Details of the Wealthy External conference held in May 2026; and
2. HMRC’s approach to the automation of their web services. This points to a Policy Paper which summarises that HMRC is considering how safe, secure and appropriate automation should operate in relation to HMRC services
For Bookkeepers
As always, ICB recommends reading the entire Update. This always contains useful information that goes further than the payroll information contained in the Employer Bulletin.