HMRC have published their Agent Update for June 2025. We have summarised the key content with links to our detailed guidance on the topics covered, including an update on fraudulent activity on HMRC's tax accounts, written-off directors' loans and changes in the reporting requirements for cryptoassets.
Making Tax Digital (MTD) for Income Tax (IT): HMRC's testing programme
MTD for IT will apply to self-employed businesses and landlords from:
- 6 April 2026, where turnover is above £50,000.
- 6 April 2027, where turnover is above £30,000.
- 6 April 2028, where turnover is above £20,000.
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 IT.
- 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 MTD: Income Tax Pilot Tool
Written off or released directors' loans
HMRC have announced that they are currently writing to taxpayers who, between April 2019 and April 2023, received a director's loan that has been written off or released but not declared as income on the taxpayer's Self Assessment return.
- The loan amount written off or released is liable to Income Tax under s.415 Income Tax (Trading & Other Income) Act 2005.
- HMRC have advised:
- Agents with affected clients can use the Digital Disclosure Service (DDS) to tell HMRC about the underpaid tax.
- For clients with loans written off or released before April 2019, the DDS can also be used to make a disclosure.
- Loans written off or released after 6 April 2023 are still within the tax return amendment window.
See Directors' loan accounts: Toolkit (subscribers)
PAYE fraud
HMRC are writing to approximately 100,000 taxpayers after it was detected that online tax accounts had been accessed fraudulently.
- The incidents involved criminals obtaining personal information of taxpayers from external sources.
- The criminals then impersonated taxpayers to obtain money from HMRC.
- HMRC have taken action to protect taxpayer data and secure any accounts that were affected by the fraud.
- HMRC confirmed no taxpayer has suffered any loss regarding their tax affairs.
- Affected taxpayers are being advised in the letters to make their agent aware of the situation; however, HMRC have pointed out that most taxpayers who were affected by the fraud were unrepresented.
See Unauthorised access of HMRC online accounts
New reporting requirements for cryptoasset businesses launching January 2026
From January 2026, UK businesses that facilitate cryptoasset exchanges must collect user and transaction data. The first submissions are due to HMRC in May 2027.
- The Cryptoasset Reporting Framework (CARF) is an international tax transparency framework developed by the Organisation for Economic Co-operation and Development (OECD) to provide standards for the automatic exchange of information on crypto-asset transactions.
- HMRC has launched new guidance for service providers reporting under the CARF. The guidance highlights:
- Whether users will be required to report to HMRC under the CARF.
- Information that service providers will need to collect about users and transactions.
- How service providers will report the information to HMRC.
- HMRC has recommended service providers:
- Subscribe for guidance updates.
- Prepare systems before January 2026.
- Review OECD CARF rules and XML specifications.
HMRC have also published guidance for taxpayers who use cryptoasset service providers, explaining the information they will need to provide to the service provider.
See Cryptoassets: How are Bitcoin, cryptocurrencies and cryptoassets taxed in the UK? and Cryptoasset Reporting Framework (CARF)
Spotlight 69: liquidation of a Limited Liability Partnership (LLP) used to avoid Capital Gains Tax (CGT)
HMRC have published Spotlight 69, addressing a tax avoidance scheme aimed at landlords seeking to enable them to transfer property to a company using an LLP to save CGT, Stamp Duty and Inheritance Tax.
HMRC states that the scheme typically operates as follows:
- An existing business operates for most of its active life as an unincorporated business.
- The individual landlord incorporates an LLP.
- The landlord transfers their rental properties, often with substantial accrued capital gains, to the LLP at market value.
- After a short period, the LLP is put into Members’ Voluntary Liquidation (MVL).
- The properties are then sold to a limited company owned by the landlord or connected parties (if continuing with the business).
- For the purposes of the MVL, the LLP is seen to acquire its assets at the time of the contribution for their market value.
- HMRC's opinion is that the scheme does not work and anyone using it or promoting it will be challenged.
See Spotlight 69: Liquidation of an LLP used to avoid CGT
VAT registration service taxable turnover screen changes
HMRC has made changes to the VAT Registration Service (VRS). The changes went live on 19 May 2025.
- HMRC now require a breakdown of the taxable turnover when completing an application on the VRS. The turnover should be broken down by:
- Standard rate (20%).
- Reduced rate (5%).
- Zero rate (0%).
- The VRS will show a breakdown of the figures entered, as well as the taxable turnover value. Users are then required to confirm if this is correct or incorrect.
Pensions for seasonal temporary staff
Employers taking on extra staff over the summer must check if their workers are eligible for automatic enrolment into a workplace pension.
- Any seasonal or temporary staff must be individually assessed when they are paid. This includes staff with variable hours and pay, whether they are employed for a few days or longer.
- Employers who fail to comply with their workplace pensions’ duties may receive a warning notice and risk a fine.
- Where staff will be working for less than three months, employers can use postponement to delay assessing those employees.
See Auto-enrolment: Workplace pensions
Self Assessment: 2024-25 'specials documents' for individuals, partnerships and trusts
HMRC have updated their 'specials documents' for individuals, partnerships and trusts, which lays out whether Self Assessment customers should file by paper or online.
The document is provided for software developers who work with online Self Assessment services, however, it may be useful for tax agents dealing with complex tax issues.
See Self Assessment Returns 2024/2025: What's new? and Online filing exclusions for 2024-25 tax returns
Submitting tax returns early
HMRC are encouraging early filing for Self Assessment, with over 300,000 people filing their return in the first week of the tax year.
HMRC say that early filing:
- Reduces stress for both the taxpayer and the agent.
- Allows substantial time to make changes or correct errors.
- Provides for stronger client/agent relationships.
- Keeps taxpayers ahead of opportunistic fraudsters.
- Avoids penalties and interest.
- Allows time to prepare for MTD requirements.
See Penalties: Self Assessment (SA), late filing, payment, notification & error
Register and reactivate Self Assessment accounts early
Agents are being encouraged by HMRC to ensure clients are properly registered for Self Assessment or that they have reactivated their account if they are returning to Self Assessment. This is to avoid unnecessary delays and errors in processing returns.
- If clients are new to Self Assessment, they must register with HMRC in order to receive their 'notice to file' and Unique Tax Reference (UTR).
- To register for Self Assessment, use the online forms CWF1 (for self-employment) or SA1 (for those not self-employed).
- If the client is returning to Self Assessment, they must reactivate their account before submitting their tax return; there is no requirement to reregister.
- To reactivate, use the online forms CWF1 or SA1.
See Register for Self Assessment
Enhancing the online complaints service for agents
HMRC introduced a new online complaints service for agents in April 2024, making it easier for HMRC to address complaints.
Feedback has encouraged HMRC to strengthen the service in two areas:
- Agents can now access unsubmitted complaints for up to 90 days.
- Up to 10 attachments can be submitted per complaint.
HMRC are continuing to improve the service and encourages agents to complete the feedback survey when submitting complaints.
Tax advice: do not let clients get caught out by tax avoidance
HMRC's ‘Don’t get caught out’ campaign helps contractors learn how to spot the signs of tax avoidance, including how to check their pay to make sure they are paying the right amount of tax.
If an agent has clients who work as contractors, they can find out more from:
- HMRC's online guidance.
- Interactive tools that allow taxpayers to check if their contracts involve tax avoidance.
- Obtaining support from HMRC and visiting the 'don't get caught out' campaign page.
Income Record Viewer
HMRC are reminding agents that their Income Record Viewer (IRV) is available. HMRC highlight that using the IRV:
- Saves time.
- Combines all the information agents need in one place.
- Reduces errors.
Agents are now able to access the following:
- State and private pension details.
- Underpaid tax for earlier years, as well as any additional debts, such as Class 2 National Insurance.
- Tax codes.
- Taxable benefits.
- PAYE information for the current tax year and four previous tax years.
- Employment records, including length of time in employment, PAYE references and tax paid.
- Student loan repayments.
Expansion of voice recognition
HMRC currently use voice recognition to identify 1.5 million taxpayers when they contact HMRC. HMRC aim to expand voice recognition, which they hope will reduce call times and increase capacity.
The expansion will be introduced between July and October 2025.
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