HMRC have published their Agent Update for October 2024. We have summarised the key content with links to our detailed guidance on the topics covered, including changes to the Agent Dedicated Line and Stamp Duty Land Tax (SDLT) on uninhabitable dwellings.
Evidence required to claim PAYE (P87) employment expenses
From 14 October 2024, HMRC has implemented new evidence requirements for taxpayers seeking to claim relief for employment expenses.
- Digital and telephone claim routes will no longer be accepted. In-year claims must be made by post.
See New evidence requirements for employment expenses
Guidance for filing Corporation Tax Returns
Quarterly instalment payer return requirements
- HMRC have updated the Company Tax Return guide for boxes 326, 625, 630 and 631 to clarify the requirements for companies paying Corporation Tax in quarterly instalments.
- Boxes 327 and 328 are not to be completed by companies that fall under the quarterly instalment regime.
- Only use box 326 to indicate the number of associated companies on your client’s company tax return.
To enable HMRC to process your clients' tax returns with minimum delay:
- When submitting a repayment claim, tick box 45 on the CT600 return to indicate that a repayment is due for an earlier or prior accounting period.
- There is no requirement to submit an amended return for the previous accounting period that will be receiving the trading losses.
- Check that the start and end dates of the return period you are filing are correct.
- Ensure that the supporting documents filed with the CT600 tax return (e.g.computations and accounts) are in the correct format.
- If you wish to adjust a return you have just submitted, allow at least 24 hours before attempting this.
- Double-check the company BACS details on the CT600 tax return before you file. If you are submitting an amended tax return for the same return period, include the BACS details on your latest amendment.
- By providing the BACS details on every return you submit, you will enable HMRC to process any repayment due with minimum delay
Changes to the Agent Dedicated Line
HMRC is changing to the service it provides for agents with Self Assessment (SA) and PAYE queries from 7 October 2024. There is now:
- One combined helpline for agents’ queries relating to SA and PAYE.
- An agent can discuss a maximum of five taxpayers on a call or web chat. This may be reduced when a call or webchat exceeds one hour.
- A webchat service solely for agents, covering both SA and PAYE (not repayment claims).
- A new telephony option when calling the Agent Dedicated Line for progress-chasing SA repayments.
Repayment claims
- Agents must first use the 'Check when you can expect a reply from HMRC' tool and check that the date has passed.
- From 7 October 2024, when the time given has passed, agents can:
- Continue to use the webchat service for updates on PAYE repayments.
- Use a new telephony option for SA repayments.
- SA repayments will not be dealt with if the main ADL option is selected.
See Changes to HMRC telephony agent services
Less than six months left to fill in National Insurance gaps to 2006
Individuals have until 5 April 2025 to fill gaps in their National Insurance records for all years from 6 April 2006 to 5 April 2018. This could increase State Pension entitlement.
- After 5 April 2025, individuals can only make voluntary contributions for the previous six tax years.
- Taxpayers can use HMRC's online service or the HMRC app to check if they have gaps in their National Insurance record, calculate if making a payment would increase their State Pension, and then make a payment if they wish to do so.
See Pension: Check National Insurance records by 5 April 2025
Updates to the Trust Registration Service (TRS) guidance
In the August 2024 Trusts and Estates Newsletter HMRC announced new guidance was added to the Trust Registration Service Manual (TRSM).
- The guidance replaced the ‘How to register’ help card issued by the trusts helpline.
- HMRC have now published additional guidance which replaces the following help cards issued by the trusts helpline:
- How to claim a trust and authorise an agent.
- Getting the proof of registration.
- Updating a trust from non-taxable to taxable.
- Closing a trust.
See Trust Registration Service
Correction to article published in Agent Update 122: changes to Corporation Tax reminders, statements and receipts
HMRC continues to send non-statutory Corporation Tax letters, contrary to the announcement in Agent Update 122.
- HMRC will advise before they stop sending letters.
The Administrative Burden Advisory Board: Tell ABAB Report 2024
The Administrative Burden Advisory Board (ABAB) published their annual Tell ABAB Report 2024 on 25 September 2024.
- The report provides a commentary on the responses to this year’s Tell ABAB Survey, which gathers small business views and experiences of engaging with HMRC across a range of our services.
See ABAB report finds worsening customer experience with HMRC
Stamp Duty Land Tax (SDLT): not suitable for use as a dwelling (uninhabitable dwellings)
HMRC has received a high number of claims for refunds of Stamp Duty Land Tax (SDLT) on the basis that a property in need of repair, is not ‘suitable for use as a dwelling’.
- HMRC’s view is that over 95% of repayment claims submitted in this area are incorrect and have fallen well below the expected threshold.
- Whether a property has deteriorated or been damaged to the extent that it no longer comprises a dwelling is a question of fact and will, in HMRC's view, only apply to a small minority of buildings.
- The Upper Tribunal recently decided in HMRC’s favour on this issue in Amarjeet Mudan and Tajinder Mudan v HMRC.
See SDLT: Residential property & dwellings
Tax Agent Codes: clarification of previous email
HMRC's email, ‘Update for Tax Agent Code Managers’, sent to agents on 4 October 2024 caused confusion.
- The email asked agents to tell HMRC their agent codes using an online form to improve the integrity of the information held.
How to find your agent code for SA and CT
- If you are unsure of the agent codes you are using:
- 1. Access your ‘HMRC Online Services for Agents’ account, using your Government Gateway user ID.
- 2. On the main menu, select ‘Your HMRC Services’.
- 3. Select ‘Services you can use’.
- Your agent codes will be visible underneath each service.
- The code will be six characters, a mixture of letters and numbers. It is also the same code provided on paper form 64-8 used to authorise an Agent.
How to find your agent registration number for VAT
- For VAT, HMRC needs your agent registration number (which will be in the format prefix letter /ARN 123 4567).
- You can sign into your Agent Services Account using your Government Gateway user ID to find this.
- Your Agent Registration Number will be displayed on your dashboard under ‘Welcome to your Agent Services Account’.
- Some Agents use the ‘HMRC Online Services for Agents’ account to deal with: VAT EU Refunds, EC Sales List, and Notification of Vehicle Arrivals.
- If you use both the Agent Service Account and the HMRC Online Services for Agents account, provide both your agent registration number and your agent code for VAT when completing the form.
Completing the form
- You can find a link to the online form in HMRC's original email that was sent on 4 October 2024.
- If you did not receive the original email or have not had a chance to respond, HMRC will be sending out a reminder email in early November 2024.
- HMRC stresses that there is no risk of an agent code being cancelled in the absence of a response. The only codes HMRC would suspend are those that agents advise are no longer required when they complete the form.
See Confirm HMRC agent codes by 8 November
Automatic enrolment duties and festive season workers
Automatic enrolment duties may apply to employers who employ short-term staff for the festive season who are not on regular hours or incomes.
- This includes staff who work for a few days, weeks, or months.
- Employers must work out who to put into a pension scheme by assessing staff individually, every time they pay them, taking into account their ages and how much they earn.
- Find out more on The Pensions Regulator website.
See Auto-enrolment: Workplace pensions
Basis period reform
- HMRC have launched a package of online interactive guidance to support the completion of 2023-24 tax returns and Working out transition profit.
- HMRC have provided an online service to ask HMRC what the Overlap relief figure is according to their records.
- To help deal with demand, HMRC ask that agents aim to use the service for all clients by 31 December 2024.
- The paper tax return filing deadline is 31 October 2024. Taxpayers who are still awaiting an overlap relief figure should file the return using provisional figures, and amend this when the correct figure is received.
- Basis period reform webinars are due to be delivered by HMRC on 31 October, 7 November and 15 November 2024.
Less than 100 days to the Self Assessment deadline
There are roughly 100 days left until the self-assessment deadline on 31 January 2025.
- HMRC are encouraging agents to act now and file returns as soon as possible to help clients budget, lower the risk of making last-minute errors and avoid late filing penalties.
See Self Assessment Return 2023/24: What's new?
Making Tax Digital
Get ready for Making Tax Digital for Income Tax
- You can use this Step-by-step guide to help you prepare for Making Tax Digital (MTD) for Income Tax.
- If you want to familiarise yourself with the service before April 2026 and try it out now, you can sign up to HMRC's testing programme.
- No penalties for late quarterly updates will be issued during testing and you will have access to a dedicated support team to help you through the process.
Check if you need to use Making Tax Digital for Income Tax
- HMRC has launched an interactive tool to help check if your client needs to use MTD for Income Tax.
- HMRC will separately confirm your clients' MTD for Income Tax status for 2026-27 based on their 2024-25 tax return.
More compatible software is available
- HMRC have updated the list of Software that works with MTD for Income Tax to include new products that have recently become available.
See MTD: Toolkit for accountants and Compare software for Making Tax Digital for Income Tax
Help HMRC protect workers from getting caught out by tax avoidance
HMRC's tax avoidance Don’t get caught out’ campaign helps contractors spot the signs of bad tax advice and understand their pay arrangements.
- HMRC are encouraging tax agents and advisers to share this information with their clients.
See When the tax inspector calls...
Tax agent toolkits
HMRC have many Tax agent toolkits available for you to download and use that address the most common errors seen in previous years.
Contact
Complain about HMRC: To make a complaint to HMRC on behalf of your client you must be appointed as their tax advisor.
Where’s My Reply? for tax agents: Find out when you can expect a reply from HMRC to a query or request you have made. There is also a dedicated service for tax agents to:
- Register you as an agent to use HMRC Online Services.
- Process an application for authority to act on behalf of a client.
Manuals
Check the latest updates to HMRC manuals or subscribe to the automatic notification of changes.
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