HMRC Agent Update

23/04/2024 - HMRC Update
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HMRC published their latest Agent Update on 17 April 2024 and ICB has highlighted some of the issues covered which may be of interest to bookkeepers.

Taxes 

This section covers a range of issues for a range of taxes: 

  • A reminder of the National Insurance Contributions checker tool and also direction to a tool developed by HMRC and HM Treasury where individuals can estimate how the April 2024 reduction in Contribution percentages affects them.  This only relates to employees and Class 1 Contributions, not Classes 2 and 4
  • A reminder that tax year 2024/25 is here bringing with it Basis Period Reform, or reporting profits on a tax year basis rather than as per the accounting period.   This applies to trading businesses subject to Income Tax (sole traders and individual partners in a partnership). Companies are not affected
  • A link to a plant and machinery allowances decision tool developed by HMRC so companies can check whether they can claim the 100% full expensing capital allowance or the 50% allowance for special rate expenditure
  • Advice that the  paper version of the downloadable Capital Gains Tax on UK property return have changed, replaced by an ‘interactive form’.  Importantly, this form does not replace the online Capital Gains Tax on UK property account and is only for those who cannot report online.  There is also a section on ‘Capital Gains Tax — common mistakes to avoid’

 

Making Tax  Digital for Income Tax Self-Assessment (MTD for ITSA)

This comes in from April 2026 (self-employed individuals and landlords with total income from self-employment and property over £50,000), expanded in 2027 where income is over £30,000.

If you have an Agent Services Account (ASA) and you and your client have MTD-compatible software, HMRC commence a testing programme from 22 April 2024 and there is an opportunity to be part of this.

HMRC Agent Services

This is a section that contains details of live consultations and links to responses, changes to HMRC service and guidance, including: 

  • The annual ‘Tell Administrative Burdens Advisory Board (ABAB)’ survey which aims to gives small businesses a big voice
  • A new online HMRC complaints form for agents
  • An update on the (VAT) DIY Housebuilders scheme       
  • A link to respond online to the ‘Raising standards in the tax advice market — strengthening the regulatory framework and improving registration’ that was announced at Spring Budget 2024
  • A link to the 20 tax agent toolkits (e.g. for Capital Gains Tax, for employers, VAT etc)

 

For Bookkeepers

The Agent Update is a valuable resource for bookkeepers who deal with a range of issues and we recommend reading the entire Update.  This is a good monthly read to keep you updated and ICB will alert you to its publication and contents.

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