HMRC have published their Agent Update for November 2025. We have summarised the key content, including updates on the Class 2 National Insurance SA302 issue, a tax fraud warning about employment agencies, Making Tax Digital and Freeport news.
Self Assessment Class 2 National Insurance Contributions (NICs)
HMRC have resolved a Class 2 NICs issue affecting some Self Assessment taxpayers.
- A fix was successfully implemented on 27 and 28 September 2025, meaning that all SA302 tax calculations issued since Monday, 29 September 2025, reflect the correct Class 2 NICs position.
- HMRC estimate that between 10,000 and 20,000 self-employed taxpayers who filed Self Assessment tax returns for 2024-25 before the fix was implemented may have been impacted.
- These taxpayers can be confident that HMRC will identify and correct any cases where this error led to an incorrect calculation, with all adjustments completed by the end of December 2025.
- This will be an automatic correction. Taxpayers do not need to contact HMRC.
Tax fraud warning for employment agencies and employers: tax credits reducing employers' liabilities
HMRC has published a tax fraud warning for employment agencies and employers to raise awareness of new fraudulent models being marketed to employers and recruitment agencies offering 'cheaper' payroll services.
- Organised crime groups are particularly active in the temporary employment agency and recruitment sector.
HMRC are aware that businesses are being approached by organisations offering models which falsely claim to be able to reduce employment costs through 'tax credits' offset from third-party businesses they have acquired.
- The organisations offering these models may call themselves, but not exclusively, payroll providers, intermediaries, umbrella solutions or back-office providers.
- These organisations falsely claim that they can acquire businesses that have credits on file with HMRC, which may include businesses in pre-administration.
- They claim to use the tax credits to offset employment taxes, such as PAYE and National Insurance, due to HMRC by operating the payroll and, as a result, can reduce the amount you need to pay.
Often in these arrangements, none of the taxes due to HMRC are being paid.
- They do this by simply not paying the taxes to HMRC or creating false documents to give the impression that the appropriate returns are made and the taxes paid.
To find out more about how these models are marketed, why they should not be used and what you should do to protect yourself, read HMRC's tax fraud warning briefing.
If you think you may already be using these types of models, HMRC offers a Range of ways to notify them.
- You can Report tax fraud and tax avoidance arrangements, schemes, and the person offering them to HMRC by using their online form to report tax fraud.
See Tax fraud warning for employment agencies and employers
Cryptoasset Reporting Framework (CARF) technical manual publication
HMRC has published Technical guidance for the CARF.
- This provides UK-based cryptoasset service providers with clarity on new reporting obligations, which start from 1 January 2026.
- The manual provides guidance for UK cryptoasset service providers by offering explanations of the CARF requirements and worked examples of how the new rules will apply.
The CARF guidance manual covers:
- Essential due diligence, including data collection requirements for individual and entity users.
- Due diligence procedures to verify taxpayer information.
- The technical specifications for submitting reports to HMRC.
- Penalties for non-compliance.
The guidance will be regularly reviewed and updated to reflect evolving regulatory requirements.
See Cryptoasset Reporting Framework (CARF)
Making Tax Digital (MTD) awareness letters are landing: how to help your clients get ready
Throughout November 2025, taxpayers who have submitted their 2024-25 tax return by August 2025 will be sent a letter from HMRC about MTD for Income Tax.
These MTD awareness letters will:
- Inform them that, based on the information they have submitted, they will need to use MTD for Income Tax from April 2026.
- Outline what they need to do to get ready, including a QR code linking them to GOV.UK guidance.
These letters advise taxpayers to speak to their tax agent, if they have one, for further support.
- This means you may see a rise in client queries over the coming weeks.
To stay ahead and support your clients effectively, you can also:
- Register for specialist, tailored MTD support to get tailored support from HMRC's MTD agent engagement team. These sessions will give agents direct access to HMRC specialists for tailored MTD readiness agent support.
- Share HMRC's MTD communications resources to align your MTD messaging with what your clients may see from HMRC and share ready-made MTD products with your clients.
- Sign up for a webinar on MTD for Income Tax. This guides you through getting ready for MTD for Income Tax, includes planning steps, actions to take now, how to sign up clients for April 2026 and a Q&A.
Top tip: to help you prepare, start reviewing your current clients while you are completing your 2024-25 tax returns to identify those who will need to use MTD for Income Tax from April 2026.
See MTD: Toolkit for accountants
Choosing the right MTD software has been made easier
HMRC has launched a redesigned Software choices tool to help users more easily identify software compatible with MTD for Income Tax.
- Following extensive user research and collaboration with key stakeholders, the new design means users can now view software products intended to support non-mandated income types that must be reported at the end of the tax year.
See Compare software for Making Tax Digital for Income Tax
Help improve GOV.UK partnership guidance
If you are a partner or an agent of a business or limited partnership, you could help improve GOV.UK guidance.
- Complete HMRC's Short survey to help them better understand what help partnerships need.
- Your feedback will improve the experience for partnerships and how HMRC write guidance for them.
Guidelines for compliance: help with Freeports GfC14
HMRC has recently published New guidelines for compliance: help with Freeports GfC14.
Freeports, known as Green Freeports in Scotland, are special areas within the UK's borders where certain different economic regulations may apply.
- They offer businesses a range of tax reliefs, including savings on NICs, Stamp Duty Land Tax, and capital allowances for qualifying investments.
- They also provide access to simplified and beneficial customs procedures, such as duty deferral and streamlined import and export processes.
These guidelines are primarily for taxpayers with business premises in a Freeport or those considering doing business within a Freeport.
- They will also be useful to Freeport governing bodies, customs site operators and professional bodies that advise clients on Freeports.
The new guidelines provide practical support by:
- Explaining the reliefs and benefits available within Freeports.
- Highlighting areas where HMRC is identifying errors.
- Encouraging compliance by clarifying areas of uncertainty.
- Helping taxpayers reduce the risk of incorrectly claiming reliefs or benefits.
- Advising on what records and evidence should be retained.
- Explaining what to do if a mistake is made.
Guidelines for Compliance (GfC) are part of HMRC's ongoing commitment to publishing practical support for taxpayers.
- They are designed to complement existing HMRC guidance by clarifying our position in complex, widely misunderstood, or novel areas of the tax rules.
See Freeports
Cyber action toolkit for businesses launched
Recent figures show that 42% of small businesses reported cyber breaches in 2024, showing the importance for businesses to build their cyber resilience.
The National Cyber Security Centre (NCSC) has recently launched the Cyber Action Toolkit.
- This is an interactive tool designed to help you and your business clients strengthen their cyber defences.
- It has been developed to be easy to use and provides simple steps for businesses, with advice tailored to business size and needs.
The Agent Account Managers (AAM) service is available to help resolve ongoing queries across all tax areas, including Self Assessment, PAYE, VAT, Corporation Tax and more.
- It covers repayment chasing but does not offer technical advice or interpretation of tax legislation.
Before accessing the AAM service, agents are required to:
- Make sure that the query relates to a specific client that they are formally authorised to represent (through a valid 64-8).
- Attempt to resolve the query at least twice through HMRC's standard communication routes.
- This includes relevant helplines, webchat services, and contact points listed in the dedicated helplines and contacts for tax agents page. This page also links to the contact details for specific taxes and duties.
- Check the 'where's my reply' tool and allow at least 20 working days to pass from the reply date given by the tool. Queries that have not exceeded the 20 working days will be rejected.
- If the query relates to a tax regime that is not listed in the 'Where's My Reply' tool, they should follow the standard communication routes for that regime. This includes the relevant helplines or contact points, clearly stating in the AAM submission that the tool does not apply to the query.
- Confirm that no formal complaint or appeal has been submitted. If one is lodged, it will supersede the AAM referral, and the query will no longer be considered.
Agents can raise a query using the online form.
- HMRC will acknowledge the query within 48 hours and provide updates every two weeks, or sooner if resolved.
The personal tax query resolution service for agents is specifically for PAYE and Self Assessment queries for individuals.
- This service does not include repayment chasing and does not address employer-related queries.
Prior to utilising the personal tax query resolution service, agents are required to:
- Check the 'where's my reply' tool and allow at least 20 working days from the reply date given by the tool.
- Try at least twice to resolve the query by contacting the agent dedicated line or agent webchat.
- Confirm that no formal complaint has been initiated relating to the query.
Agents will be directed to use the service in the 'Where's my reply' tool if the query is eligible.
- HMRC will acknowledge receipt of the query within 48 hours, provide updates by phone every five working days, and seek to resolve the query within 20 working days, or develop an action plan if resolution is not possible within this timeframe.
Top tips when using either service:
- To utilise either of these services effectively, agents should ensure they meet the eligibility criteria.
- Providing a secondary contract is recommended in case the primary agent is unavailable, such as during annual leave.
- HMRC encourage agents to utilise their resolution services before submitting a formal complaint, as these services will not be able to assist with queries once a formal complaint has been filed.
Self Assessment communications
To help you with your Self Assessment communications, HMRC are providing free high-quality assets, including images for agents to use in their social media, news articles, newsletters and blogs.
- The images can be downloaded from HMRC's Frontify Self Assessment pages.
- This is a platform where agents and stakeholders can find HMRC campaign content, including key messages and free downloadable images.
- You can choose from HMRC-branded or unbranded images.
Top Self Assessment tips for tax agents
Here are practical tips for tax agents to help minimise stress in the run-up to the Self Assessment deadline on 31 January 2026.
How to get tax returns and repayments correct, as errors can result in delays and incorrect payments:
- Check that the client's details are correct and up-to-date. This includes their bank sort code, account number, Unique Taxpayer Reference (UTR), National Insurance number, name and address.
- Leave 14 days after making a payment before requesting a repayment.
- For previously bankrupt clients, use their post-bankruptcy UTR for repayment requests.
- Notify HMRC of the capacitor if the client died before submitting their tax return and before requesting a repayment.
- Encourage clients to receive their repayment electronically. Bankers Automated Clearing System (BACS) is the quickest and safest method.
Register or reactivate Self Assessment before filing:
- It takes longer to process tax returns from taxpayers who have not registered for Self Assessment before submitting their tax return or who did not reactivate their Self Assessment account if they filed tax returns in the past.
- People who are new to Self Assessment must register with HMRC to be set up on the system and receive a notice to file.
- Agents can find guidance on how to register their client by completing an online SA1 or CWF1 form.
- If your client has previously been in Self Assessment and did not file a tax return last year, make sure their Self Assessment account is reactivated and that they receive their notice to file before submitting their tax return.
- Returning Self Assessment taxpayers do not need to register as new, as they already have a UTR.
- The reactivation of the account can be done by:
- The client in their online account.
- The agent, by calling the agent-dedicated line and selecting option 2, and then 'Self Assessment reactivations' when prompted.
- Completing an online SA1 or CWF1 form.
Stopping Self Assessment:
- If your client no longer needs to file a tax return, contact HMRC as soon as possible using webchat, phoning or writing to them.
- Your client can also notify HMRC by following the guidance on how to inform HMRC that they no longer need to file a return.
- If HMRC is not informed, clients will continue to receive reminders. They may get a penalty if they ignore these reminders and do not file on time.
Track progress with the 'where's my reply' tool
- Use the 'where's my reply' tool to check when you can expect a response from HMRC.
- If the due date has passed, contact HMRC using the webchat service or by calling.
- You can use the personal tax query resolution service for agents to escalate Self Assessment and PAYE queries if you:
- Checked the 'where's my reply' tool and that the date given has passed by at least 20 working days.
- Attempted to resolve the query at least twice by contacting the agent-dedicated line or webchat.
- Have not already initiated a formal complaint to HMRC.
- The service does not cover employer-related queries or repayment progress chasing.
- Agents will be directed to use the service in the 'Where's my reply' tool if the query is eligible.
Marriage Allowance sequencing:
- Tax returns that include Marriage Allowance transfers have to be submitted in the correct sequence to avoid delays.
- Step 1: The person transferring the allowance (transferor) should submit their tax return first if the person receiving the allowance (recipient) is also in Self Assessment.
- Step 2: The recipient should leave 72 hours after the transferor has submitted their tax return before submitting theirs.
- Processing time for online Self Assessment returns can vary, but they are generally acknowledged within 72 hours and fully processed within two weeks.
Reporting student and postgraduate loans:
- If your client has an outstanding student or postgraduate loan, it is important you include the following in their tax return:
- Income for each employment: This ensures charges on student or postgraduate loans are calculated correctly and the student loan company applies the correct interest rate.
- Loan deductions taken from each employment: These amounts will be automatically deducted from the total student or postgraduate loan charge in Self Assessment to ensure the correct amount is charged.
- Benefits In Kind (BIKs): Use the new boxes on the tax return to report BIKs that are subject to Class 1A NICs. These BIKs should not be included in the student's postgraduate loan repayment calculations to ensure the correct calculation. The BIK entries should be made on the returns as follows:
- Online tax return: Use the box titled 'Payrolled benefits included in pay from employer which affects student loan repayments'.
- SA102 paper tax return: Fill in the box titled ' Payrolled benefits included in box 1 which affects student loan repayments'.
- Unearned income, such as savings interest or rental income, is included in the student loan repayment calculations only if it exceeds £2,000 a year. If unearned income is less than £2,000, it is ignored for student loan repayment purposes.
- Repayment rates and thresholds: If repaying both a student loan and a postgraduate loan, both sections must be completed, and repayments are calculated together. Repayment rates and thresholds depend on the loan plan.
Check PAYE records:
- Check your clients' PAYE records before submitting their tax return, which should include any repayments through PAYE.
- Carrying out these checks can avoid delays, duplicate repayments, overpayments and incorrect tax calculations.
Submitting a tax return as an amendment:
- You should submit your client's tax return as an original, not as an amendment, to avoid delays.
- HMRC receive a high number of tax returns submitted as an amendment using third-party software, but these cannot be processed automatically.
- To ensure tax returns are processed quickly, submit the original tax return as normal.
Changes to be aware of:
- Cash basis is now the default for sole traders and partnerships.
- Instead of recording income and expenses when they are invoiced or billed, you record them only when money is received or paid.
- Capital gains: New rates for disposal apply on or after 30 October 2024, excluding residential property, Business Asset Disposal Relief (BADR), Investors' Relief (IR) or carried interest.
- The Self Assessment tax return will not automatically apply the new rates, so you must use the adjustment calculator to work out your Capital Gains Tax for 2024-25, and then add the adjustment figure to the SA108, SA905 or SA970.
- See HMRC's new 2024-25 CGT 'adjustment' calculator
Capital gains: other changes include:
- The higher rate for residential property was reduced from 28% to 24% in April 2024.
- The annual exempt amount was reduced to £3,000 for individuals for 2024-25.
- Form SA108 now includes new boxes for BADR, crypto gains and carried interest.
- From 30 October 2024, the IR lifetime limit has been reduced from £10 million to £1 million to align with the BADR lifetime limit.
Be aware of fraud
Tax agents hold sensitive data on their clients and their own business. This makes them an attractive target for criminals. To reduce the risk of fraud, you should:
- Avoid following links or downloading attachments in suspicious or unexpected emails.
- Keep login details secure, do not share them with anyone.
- HMRC will never ask for your password.
- Use a strong password and change it if you think someone is aware of it.
- Combining three random words can make a unique password which is easy to remember.
- Run antivirus scans and check your systems for any unusual software.
- Check your HMRC account for any unauthorised or unusual activity, such as changes to email addresses or the addition of software.
HMRC know that fraudsters target taxpayers closer to the Self Assessment deadline.
- To help keep you and your clients safe, file early so you can spot scams more easily.
Providing feedback on HMRC manuals
HMRC manuals contain technical guidance for HMRC staff and tax professionals.
- Their primary purpose is to explain HMRC's interpretation of relevant legislation, which is the basis on which the department makes decisions.
- All pages on GOV.UK contain feedback routes at the end of each page as well as the contact GOV.UK form that allows you to tell HMRC whether a page is useful, suggest improvements or report a problem with a page.
- The HMRC manuals team review all items of feedback on HMRC manuals from internal and external users.
Self Assessment repayments by telephone and webchat
In March 2025, HMRC paused the issuing of Self Assessment repayments over the telephone, including the agent dedicated line, and through webchat in response to a rise in suspected fraudulent activity.
- Due to the success of this temporary measure, HMRC has decided to adopt it on a permanent basis.
- Taxpayers and agents can continue to claim Self Assessment repayments through their online tax or services accounts.
- Postal applications will be accepted for digitally excluded taxpayers.
Company tax returns: director's and participator loans
HMRC are sending emails to registered agents where they have found a potential issue with some of their clients' company tax returns.
- The returns show future repayment dates for director's and participator loans.
- It is possible these clients did not repay their loans by those dates.
- This means they may not qualify for any relief they have claimed under Section 458 of the Corporation Tax Act 2010 (CTA 2010).
HMRC want to support agents so you can help your clients get this right.
Things to consider if you receive this email:
- Contact HMRC for details of clients who may be affected by this issue.
- Help your clients check their most recent company tax return to see if they have claimed the right amount of relief.
- If the relief claimed is not correct, advise them to check the guidance on making changes to Corporation Tax returns.
See One-to-many letters: Tracker
Live webinar: Transfer of Assets Abroad, HMRC's approach to the motive defence
This webinar gives an overview of the Transfer of Assets Abroad (ToAA) exemptions, commonly referred to collectively as the 'motive defence'.
The webinar will:
- Give a brief background on the ToAA legislation.
- Give an overview of the various exemption provisions, highlighting common misconceptions.
- Explain HMRC's approach to the exemptions.
- Give examples of the exemptions.
- Discuss how an application for an exemption from a ToAA charge should be made.
For this webinar, HMRC will assume that you have a reasonable working knowledge of ToAA legislation in broad terms, as they will only be covering the exemptions and not the conditions that must be present for a ToAA charge to arise.
On 2 December 2025, you can Register for the live webinar.
The tax agent's handbook: now more helpful and user-friendly
HMRC have been working with the agent representative bodies to get their insight on what HMRC can do to further improve the tax agent's handbook.
- Based on this feedback, HMRC have updated the handbook to include more services available to agents, such as the agent account managers service and agent webinars and toolkits, as well as improved signposting.
- HMRC aim to help agents quickly find the guidance and information they need.
Talk to HMRC about GOV.UK guidance on Corporation Tax
HMRC are always looking to improve their GOV.UK guidance.
- A particular focus now is Corporation Tax, where HMRC want to make improvements to help reduce the number of errors made in returns.
- If you work in this area and have comments about HMRC guidance, especially about record-keeping or directors' loans, contact them by emailing
This email address is being protected from spambots. You need JavaScript enabled to view it. .
Resolving difficulties with HMRC online services
When agents experience technical difficulties online, such as logging in, broken links, or an error message, you can access support by clicking the 'Is this page not working properly' link that appears at the bottom of the page.
- When the initial query is raised, there is no need to include personal details, although these may be asked for at a later point.
- Agents will be provided with a reference number by email for each individual contact.
- For technical issues where the link is unavailable, agents should report the problem using the links on technical support with HMRC online services.
Agents should also seek support using dedicated helplines and contacts for tax agents.
Income Record Viewer (IRV)
IRV lets agents access their clients' PAYE details for the current and previous 4 tax years, including:
- Employment records.
- Student loan repayments.
- Latest tax codes.
- Taxable benefits.
- Pension information.
- Any underpaid tax or debts.
The information is all in one place and it is much faster to access than calling or writing to HMRC.
Authorisation is simple and secure through a one-time digital handshake.
- The details of digitally excluded clients can also be viewed on the IRV.
- The agent will need to send them the authorisation request link to call the relevant helpline, where they will be passed to HMRC's extra support team, who will be able to guide them through the process.
External link