HMRC have published their Agent Update for July 2025. We have summarised the key content with links to our detailed guidance on the topics covered, including an update on recent Class 2 National Insurance computation issues.
Reminder: Self Assessment payment on account
The deadline for the second Self Assessment payment on account is Thursday 31 July 2025.
- If the taxpayer files their tax return early, they may be able to reduce their payment on account if their tax liability has decreased.
See Payments On Account (POAs): Self Assessment
Self Assessment Class 2 National Insurance Contributions (NICs)
HMRC are working to resolve an issue affecting some Self Assessment taxpayers in relation to Class 2 NICs for 2024-25.
- The nature of the error depends on individual circumstances.
- Some taxpayers with self-employed profits above £12,570 have seen a Class 2 NICs charge of £358.80 added to their accounts when it should not have been.
- In some circumstances, it will be less.
HMRC have taken action to correct the Class 2 NICs figure where the information they hold has allowed them.
- If this applies to a taxpayer, they will have received a message to let them know.
- HMRC will correct the records of other taxpayers after the issue has been resolved and notify them when they have done so.
Taxpayers will also be issued with a new SA302 tax calculation after their record has been corrected with a new 30-day limit.
- Some taxpayers have reported receiving a letter correcting their NICs figure to the initial (correct) figure submitted in the tax return.
- In these circumstances, the taxpayer will not receive a further SA302.
Incorrect Class 2 NICs letters will continue to be issued until the IT problem is resolved in September.
- HMRC will be correcting records before any incorrect amounts due affect the tax owed for the 2024-25 tax year.
- Taxpayers who may have made a payment will either be refunded or have credit added to their Self Assessment statement.
Personal tax query resolution service for agents
This service is specifically for PAYE and Self Assessment queries for individuals that HMRC's agent dedicated line or agent webchat have not resolved.
- This service is not available for chasing progress of a repayment.
Before using the query resolution service, agents must have:
- Checked the 'Where's my Reply' tool with at least 20 working days having passed from the reply date given.
- Tried at least twice to resolve the query by contacting the agent dedicated line or agent webchat.
- Not already initiated a complaint with HMRC related to the query.
Payments on account schedules accessible in VAT online account
HMRC have made some improvements to VAT online accounts for payment on account taxpayers.
- Taxpayers can now view the details of their payments on account payment schedules.
- Paper notifications will still be sent to taxpayers.
The new improvements will:
- Reduce reliance on paper copies.
- Allow taxpayers to check their upcoming instalment schedules and payments, as well as their balancing payment due dates, in one place.
- Give taxpayers real-time access to instalment changes following any increases in their taxable turnover for payments on account purposes.
Making Tax Digital (MTD) for Income Tax: Getting ready for the new way to do tax returns
MTD for Income Tax will apply to self-employed businesses and landlords from:
- 6 April 2026, where qualifying income is more than £50,000 in the 2024-25 tax year.
- 6 April 2027, where qualifying income is more than £30,000 in the 2025-26 tax year.
- 6 April 2028, where qualifying income is more than £20,000 in the 2026-27 tax year.
Qualifying income is the gross income, before expenses and tax are deducted, that sole traders and landlords receive in a tax year from self-employment and property combined.
HMRC are currently running a testing programme for taxpayers wishing to sign up early for MTD. HMRC say this will allow taxpayers and agents to:
- Build an understanding of the new systems and processes early to ensure confidence when MTD becomes a requirement.
- Have exclusive access to HMRC's dedicated customer support team, who will assist agents and taxpayers with any questions about the service.
To sign clients up for the MTD testing programme, agents will need:
- Software that is compatible with MTD for Income Tax.
- An agent services account.
- Their client's details and income sources.
- Permission from their clients to sign up.
Agents should go to Making Tax Digital for Income Tax to access the testing programme.
See Making Tax Digital: Planner & Timeline, Making Tax Digital: Survival guide (for the self-employed and landlords), MTD: Toolkit for accountants and MTD: Income Tax Pilot Tool
Creating strong passwords: a guide for tax agents
Tax agents are a common target for online fraud.
- It is important for agents to keep their passwords and login details safe, and to make sure the devices they are using are protected from viruses and other threats.
- One of the ways to stay secure is by using strong passwords and changing them regularly.
Guidance for setting strong passwords:
- Use three random words.
- Avoid using words connected to you, such as birthdays, pet names or favourite teams.
- Avoid using predictable and common passwords like '123456' or 'password'.
- Use a different password for different accounts.
- Do not re-purpose or use old passwords.
Using a password manager is a great way to generate and store all your passwords, and you only have to remember one 'master' password.
- It is strongly recommended that you:
- Choose a strong 'master' password using three random words.
- Turn on two-step verification on the password manager account.
- Install updates for your password manager app as soon as you are prompted.
Tell ABAB Survey now open
The annual Tell ABAB Survey is now open for completion.
- The survey takes roughly 15 minutes to complete and will be open until 31 July 2025.
- Results from the survey will be published on GOV.UK in September 2025, in the Tell ABAB Report.
- The survey is commissioned by an independent body, the Administrative Burdens Advisory Board (ABAB), providing crucial insight on the big issues faced by small businesses (including those who identify as tax agents) in the tax system.
- ABAB want to listen to and understand the needs of the small business community. Board members come from a range of businesses and professions, and their goal is to support HMRC to make the tax system quicker and simpler for small businesses.
- ABAB challenges HMRC on its performance, providing robust scrutiny against key initiatives, such as Making Tax Digital and Improving Customer Experience. Their annual report, which is sent directly to Treasury ministers, reviews HMRC’s progress against ABAB’s priorities.
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