HMRC have published their Agent Update for December 2024. We have summarised the key content with links to our detailed guidance on the topics covered, including guidance for Corporation Tax quarterly instalment payers, P800 tax calculation delays, and voluntary National Insurance Contributions.
New Corporation Tax guidance
HMRC have published new guidance about registering for Corporation Tax for:
See Company Tax registration checklist
2025-26 student and postgraduate loans thresholds and rates
The student and postgraduate loan threshold and rates have been announced for 2025-26:
- Plan 1: threshold £26,065, rate 9%.
- Plan 2: threshold £28,470, rate 9%.
- Plan 4: threshold £32,745, rate 9%.
- Postgraduate loan: threshold £21,000, rate 6%.
See Student Loans
Company Tax Returns: quarterly instalment payers and those eligible for Marginal Relief
From 1 April 2023, the related 51% group companies test (that applied to quarterly instalment payers, patent box and others) was replaced by the associated companies rules.
- On 10 September 2024, HMRC updated the CT600 Company Tax Return guide for boxes 326, 327, 328, 625, 630, and 631.
- This update clarified the correct box to be completed for applying the related 51% group companies test for quarterly instalment payers.
- HMRC understand this has caused some confusion as some companies have been asked to resubmit their return.
- If a company’s accounting period straddles 1 April 2023, quarterly instalment payers will still apply the related 51% group company test across the whole period.
- Unfortunately, this figure cannot be entered into box 625 as a cut-off date was required to ensure companies are completing the correct box from 1 April 2023 for the associated companies' rules.
- Companies should instead use box 326 to report the number of 51% group companies only for accounting periods that straddle 1 April 2023.
- This ensures that, despite the limitations of the CT600 boxes, returns are as closely aligned as possible to the legislation and will be accepted upon submission.
- HMRC will not require companies to submit amendments to Company Tax Returns submitted before 10 September 2024 to reflect the amended guidance.
- Returns submitted from 10 September 2024 should follow the current published CT600 guidance.
- You will only need to submit an amended return if there is a change to something other than the number of associated or group companies on your return.
See Corporation Tax instalment payments
Extended period for issuing tax calculation (P800) letters
Due to higher-than-expected volumes, some taxpayers will not receive their P800s until 2025.
- This includes some PAYE customers who think they may have additional tax to pay on savings for the year ending 5 April 2024.
- This is slightly longer than in previous years where HMRC have aimed to complete most end-of-year PAYE reconciliations by the end of November.
- The process will be complete by the end of March 2025 and PAYE customers are asked not to chase until after that point. GOV.UK guidance is being updated to this effect.
Simple Assessment: a reminder to pay
HMRC are urging taxpayers who have received a Simple Assessment letter to pay by the deadline of either 31 January 2025 or three months from their letter’s date of issue, whichever is later.
- There are various ways to pay, including the HMRC app, online, by bank transfer and by cheque.
Basis period reform
HMRC have launched a tool to work out your overlap relief figure based on your records, information previously provided by HMRC and your own estimates. HMRC:
- Ask that requests for overlap relief figures are submitted early. Preferably this was by 31 December 2024.
- Request that the online form is only used if you do not have a figure for overlap relief. The form is not intended to be used to check or confirm a figure that you already hold and there is no requirement to use the service before filing a return.
- Advise that if you use the service but have not heard back by 31 January 2025, you should file the tax return on time with a provisional figure for overlap relief and amend it when you have further information.
See Basis Period reform and Provisional and estimated figures in tax returns
Agent control of client online tax accounts
HMRC remind agents that there are no circumstances in which it is acceptable for an agent to directly control a client’s online tax account, or register said account to their own email address.
- The HMRC standard for agents also explicitly states that agents must never ask any client to share their Government Gateway user ID and password.
- Such behaviour is rare, but where identified, HMRC will act swiftly to safeguard customer data, including suspending accounts and deleting Government Gateway credentials.
- HMRC reserves the right to take further action where repeated breaches occur as detailed in the HMRC standard for agents.
See Tax Agents: HMRC's Standard for Agents
The best way to pay voluntary National Insurance (NI) contributions
Taxpayers have until 5 April 2025 to fill gaps in their NI records dating back to 6 April 2006. After this deadline, they will only be able to make payments for the previous six tax years.
- Clients should be encouraged to check their NI record using the HMRC app or online service and calculate whether making a payment could increase their State Pension.
- HMRC recommend using the ‘pay by bank account’ option online. Payments made this way will typically be reflected in your client's NI record within five working days.
See NICs Top Ups: National Insurance Contributions
Hints and tips for completing form 64-8
HMRC advise that to avoid unnecessary delays with 64-8s, you should:
- Check what a paid agent can do on your behalf and download the latest version of form 64-8.
- Not include a covering letter, unless it contains information that is absolutely necessary to process the form. Add any essential information to your covering letter, do not write outside the boxes on the form.
- Make sure the form is typed, or the handwriting is easy to read.
- Not provide any additional information in the form fields other than the requested information: for example, in the ‘agent code’ field, only include the correct Self Assessment agent code, consisting of six characters in the format 1111XX.
- Not strikethrough any unused boxes or make any marks in the margin of the form.
- Provide the correct agent codes for the relevant tax regimes (for example, PAYE XX1111)
See Where to send form 64-8 (agent authority)
VAT Registration Service: registering for VAT by post
HMRC remind agents and their clients that applications for VAT registration should be made using the online VAT Registration Service and not by any other electronic means, including email.
- Agents should continue to use the VAT Registration Service through the agent services account and ensure they have client details ready and input them correctly.
- Paper form VAT 1 should only be used as outlined in HMRC's guidance, including for taxpayers who are unable to use the digital service.
VAT Registration Service: adding repayment bank account details through a business tax account
HMRC encourage taxpayers to use the business tax account to update their VAT repayment bank account details and ask agent communities to promote these digital options.
- Making the change online ensures the taxpayer's receipt of payment, through BACS, directly into their account, reducing the processing time and adding additional security to the repayment.
- Paper form VAT484 to change VAT registration details should only be used as outlined in the guidance. Use of form VAT484 that does not meet the criteria will be rejected and taxpayers will be directed to make updates using the VAT online account through their business tax account.
Help test HMRC’s pay calculator for umbrella company workers
Help test a new HMRC calculator that estimates take-home pay for umbrella company workers. The tool can also help employment businesses understand the pay of umbrella company workers they supply.
- This calculator will help workers to: estimate take-home pay, check common deductions, identify potential incorrect deductions, and understand assignment rates, gross pay and net pay.
- Your feedback will help improve the service before its full launch.
See Starting Work 5. Agency or Umbrellas
The Administrative Burden Advisory Board (ABAB) annual report 2024
ABAB published their annual report 2024 on GOV.UK on 16 December 2024.
- The Annual Report details ABAB’s progress against the priority areas identified in the previous report, which included:
- Making Tax Digital for business.
- Tax simplification.
- Customer experience.
- Basis Period Reform.
- The Tell ABAB Survey.
- The Report also shares ABAB’s priorities for the forthcoming year.
- This year’s report is structured around the three priority areas the Exchequer Secretary for the Treasury set HMRC to report against:
- Modernising and reforming HMRC.
- Improving day-to-day performance.
- Closing the tax gap.
Open consultation on simplifying the taxation of offshore interest
The government is seeking views on how the taxation of offshore investment income can be simplified to help reduce administrative burdens for taxpayers and improve the efficiency and focus of HMRC’s compliance work.
- A consultation document on simplifying the taxation of offshore interest was published on 30 October 2024 and runs until 22 January 2025.
See Consultation on simplifying the taxation of offshore interest
Get ready for Making Tax Digital for Income Tax with HMRC's agent toolkit
To help you and your clients prepare for Making Tax Digital (MTD) for Income Tax, HMRC have published a new MTD toolkit for agents.
- This includes: an overview of what is changing, who is affected and how to prepare; links to MTD for Income Tax guidance; frequently asked questions and answers; and communication resources such as an agent checklist, videos and printable posters.
Self Assessment deadline is not far off
The 31 January Self Assessment is not far away. Agents can use six online resources aimed to assist in preparing tax returns:
- Agents online service for Self Assessment submit your client’s tax return, view their statements and more.
- Income Record Viewer (IRV): prepare and check tax returns with access to your client’s pay from the last four years, employment records, pension (private and state) and tax codes.
- Check our performance and service levels and When you can expect a reply for post and online.
- Check if you need to do a tax return or if you need to report additional income helps you to decide if your client needs to do a tax return.
- HMRC have also produced top tips for Self Assessment on mynewsdesk.com.
See Self Assessment Return 2023/24: What's new?
Safety and Security declarations: new requirements from 31 January 2025
From 31 January 2025, all European Union (EU) imports into Great Britain (GB) will require Safety and Security declarations.
- HMRC have published a short video on YouTube: Safety and Security declarations - new requirements from 31 January
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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