HMRC have published their Agent Update for May 2026. We have summarised the key content, including mandatory tax adviser registration, VAT return submission deadlines, claiming Personal Tax refunds, and support for taxpayers during the Iran crisis.
Tax adviser registration now open: check if and when you need to register
Mandatory tax adviser registration is now open.
- If your firm submits returns, makes payments or communicates with HMRC on behalf of clients, you will need to check if and when you need to register as a tax adviser with HMRC.
- You have three months to apply from the date you need to register to apply for an agent services account.
- If you already have an agent services account, no immediate action is required. HMRC will contact you through your account if any further information is needed.
See Mandatory tax adviser registration with HMRC
Making Tax Digital (MTD) for Income Tax: signing up and what to do next
MTD for Income Tax is here.
- This means you and your mandated clients should now be using MTD compatible software to create and store digital records in time for the first quarterly update deadline of 7 August 2026.
- HMRC have several resources to help you in the run-up to the first deadline.
If you have not already, be sure to sign up your client for MTD for Income Tax if their total gross income from self-employment and property exceeded £50,000 on their 2024-25 tax return.
Before you send your client's first quarterly updates, there are three actions you need to take:
- Authorise and connect your software to HMRC.
- Check you have selected the right accounting period in your software and remember it automatically defaults to 6 April to 5 April, and you cannot change it after you send your first quarterly update.
- Use the right software to start creating digital records of your client's income and expenses from self-employment and property.
Remember if you use a different accounting period other than 6 April to 5 April, you will still need to submit your quarterly MTD updates by the same deadlines:
- Quarter 1: 7 August 2026.
- Quarter 2: 7 November 2026.
- Quarter 3: 7 February 2027.
- Quarter 4: 7 May 2027.
VAT return submission deadlines
VAT return submission deadlines are set in law and do not change when the due date falls on a weekend.
- The statutory deadline for submitting a VAT return is one calendar month plus seven days after the end of the VAT period. This is a fixed date.
- VAT returns can still be submitted at weekends.
- Where a business is unable to submit at the weekend, the return should be filed before the due date to make sure it is received by HMRC on time.
- There is no 'next working day' concession for VAT return submissions.
- Returns submitted after the statutory due date are late and will receive a late submission point or penalty.
See Calendar of tax deadlines and new tax measures, Penalties (VAT) and VAT return due dates not extended for weekends or bank holidays
Specials and exclusions update for individuals, partnerships and trusts or estates
The Self Assessment specials document for individuals, partnerships and trusts, which sets out whether Self Assessment taxpayers should file a paper tax return rather than an online one, has been updated.
- This document is produced for software developers working with Self Assessment online services, but some tax agents also find them useful when dealing with clients with complicated tax affairs.
See Online filing exclusions for 2025-26 tax returns
Clients can claim a tax refund in minutes
HMRC may have contacted you or your clients about a tax refund.
- For most taxpayers, refunds are no longer issued automatically by cheque.
- Clients now need to take action to receive any money they are owed.
Due to security and verification requirements, agents cannot claim repayments on behalf of clients.
Prepare your clients by encouraging them to:
- Check the HMRC app or their Personal Tax account to see if they are due a refund.
- Claim their refund online if prompted.
- Make sure their personal details are up to date with HMRC, including their postal address.
Clients can check and update their details in the HMRC app or their Personal Tax account.
- Keeping details up to date helps ensure important letters and payments are not delayed.
How your clients can claim:
- Open the HMRC app or sign into their Personal Tax account.
- Go to 'Pay As You Earn (PAYE)'.
- If they're due a refund, a green 'Claim' button will be visible.
- Tap to claim.
Repayments are normally made by bank transfer within one week.
If your client cannot use digital services, they can still request a payable order, but this will take longer to arrive.
Clients requesting payable orders will need:
- Their P800 reference number, which can be found on the tax calculation letter.
- Their National Insurance number.
Self Assessment repayments: why a credit may still show and what to do
When you submit a Self Assessment tax return or make an online repayment request, you will receive an on-screen acknowledgement and submission reference confirming that HMRC have received it.
- In some cases, even though HMRC have received the request and are processing it, the client's Self Assessment statement may continue to show the amount as a credit rather than as a repayment in progress.
If you have received a submission reference, this confirms that:
- HMRC have received the tax return or repayment request.
- The repayment is in progress.
- No further action is needed from you or your client at this stage.
Submitting another online repayment request will not speed things up and will create confusion, as the account will continue to show the credit until processing is complete.
HMRC recommend that you:
- Check for the submission reference.
- If you received an acknowledgement, HMRC have the request.
- Avoid submitting repeat repayment requests.
- If the account shows a credit but you have a submission reference, a further request is not required.
- Reassure your client.
- A credit showing on the Self Assessment statement does not mean the request has been missed or rejected.
Self Assessment after bankruptcy: using the correct Unique Taxpayer Reference (UTR)
Following bankruptcy, HMRC sometimes see Self Assessment returns submitted using a UTR that is no longer valid.
- This may slow down processing and result in unnecessary additional tasks.
When a taxpayer is declared bankrupt, their existing UTR expires at the end of the tax year in which they were declared bankrupt.
- That UTR must not be used for Self Assessment tax returns after that year.
The taxpayer must register for Self Assessment again and get a new UTR if they:
- Continue trading after the bankruptcy year.
- Need to complete a Self Assessment return at any point after that year.
This allows HMRC to keep the taxpayer's pre and post-bankruptcy affairs separate and ensures future returns are processed correctly.
Agents should:
- Not use the pre-bankruptcy UTR for tax returns after the bankruptcy year.
- Register the taxpayer again for Self Assessment where needed.
- Ensure returns are submitted using the new UTR issued after registration.
Choosing the quickest way to contact HMRC for personal tax queries
Before contacting HMRC, use the 'Where's my reply' tool to see if they are within the expected time frame for when you can expect an update on returns, payments, and other requests.
- You should only contact HMRC if they have not responded within the time frame.
HMRC's agent webchat for personal tax queries, which includes PAYE and Self Assessment for individuals, is open Monday to Friday, 8am to 6pm.
- Agents can raise up to five queries for clients per webchat session, which can last for up to one hour.
- HMRC are about to make some improvements to this service based on feedback from agents and representative bodies.
- This includes streamlining the webchat journey, so when you need an advisor, you'll get through to one more quickly.
- HMRC have also been reviewing the types of queries that are most appropriate for webchat as well as working on a longer-term improvement, so the digital assistant can direct you to agent-focused guidance.
You can contact HMRC's agent webchat service for many straightforward, transactional queries which can include:
- All PAYE queries.
- Registrations and reactivations.
- De-registrations.
- Progress chasing.
- Making Tax Digital.
If HMRC are unable to resolve your query over webchat because it is too technical, HMRC will offer to call you back within two working days.
- Alternatively, you can call the agent dedicated line.
Some queries are more complex and take longer to resolve and are better discussed over the phone.
- HMRC's agent dedicated line is open Monday to Friday, 8am to 6pm.
Complex queries can include:
- Statements and payment allocations.
- Clarification on remissions.
- Cases involving over repayment, detailed breakdowns of multiple payments, allocations.
- Reallocations which involve multiple years.
- Class 4 miscalculations.
Complex or technical queries requiring escalation to specialist teams:
- Capital Gains Tax.
- Double taxation.
- Basis period reform.
- Chargeable events.
- Non-residency.
If you still need help to resolve a query after using all the above channels, then it may be worth checking if you can use HMRC's agent escalation and resolution services.
Before you use either service, you must have:
- Checked 'Where's my reply' tool, with at least 20 working days having passed from the reply date given by the tool.
- Tried at least twice to resolve the query by contacting HMRC, including the agent dedicated line or agent webchat.
- Not already initiated a complaint with HMRC related to the query.
Mandatory online filing of amended company tax returns from 1 April 2027
HMRC plan to introduce mandatory online filing for amended company tax returns from 1 April 2027.
- The aim is to improve the accuracy of amended returns and speed up processing, particularly where claims or repayments are involved.
The consultation explains the exemptions that would apply and seeks views on whether any additional exemptions should be considered, as well as whether mandation should begin later than 1 April 2027 for practical reasons.
- Agents are encouraged to review the consultation documents and submit their responses to the consultation by 2 June 2026.
- Responses should include examples of scenarios in which amended returns cannot be filed online in practice.
See Modernising and standardising company tax returns consultation
Support during the Iran crisis
The government has announced a range of support for businesses and individuals.
Fuel Duty
The 5p Fuel Duty cut will be extended until 31 December 2026.
- Planned increases on 1 September 2026 and 1 December 2026 will no longer go ahead, and the main rate of Fuel Duty will remain at 52.95p per litre.
Red diesel:
- The duty rate on red diesel will be cut from 10.18p per litre to 6.48p per litre from 15 June until 31 December 2026.
Heavy Goods Vehicle (HGV) Vehicle Excise Duty (VED):
- Over the next 12 months, when hauliers renew their HGV VED, they will pay £1 only.
Approved Mileage Allowance Payments (AMAPs), Mileage Allowance Relief (MAR) and self-employed mileage:
- Increases to AMAPs, MAR and self-employed mileage will be backdated to 6 April 2026 for the 2026-27 tax year.
- The 45p per mile rate increases to 55p per mile for the first 10,000 miles.
- The 25p per mile rate for mile 10,001 and over remains unchanged.
- Employers may want to increase the amount they reimburse their employees for business mileage, in line with the new rates.
- Employers who reimbursed their employees above the old rates, where Income Tax and National Insurance Contributions (NICs) have been deducted, may need to re-run their payroll for April and May to account for the increase to AMAPs.
- If an employee is reimbursed less than the new AMAPs rate, they can follow advice to Claim tax relief for their job expenses.
- The job expenses tax relief claim forms are being updated with the new mileage rates.
- HMRC will confirm in a future Agent Update when the new forms will be live and you can submit a claim for mileage relief.
- Self-employed taxpayers will be able to use the new rates in their 2026-27 tax return, due on:
- 31 October 2027 if completed by post.
- 31 January 2028 if filed online.
See Approved increase to employee mileage rates marks first change in 15 years and Authorised mileage rates (own vehicle)
Research and Development (R&D) tax relief update: advance assurance pilot
The targeted R&D advance assurance pilot launched on 18 May 2026 and will run for 12 months.
- The pilot responds to stakeholder feedback calling for a more accessible and focused assurance service for R&D tax relief claims.
- It is designed to provide eligible Small or Medium-sized Enterprises (SMEs) with early guidance on specific complex or high-risk areas of an R&D tax relief claim, supporting companies to make well-informed decisions prior to submitting their claims.
- The service is offered free of charge and is voluntary.
- It does not replace the statutory requirement to submit a claim in the Corporation Tax return and to complete all the usual steps required, such as the claim notification HMRC require, and an additional information form.
Your participation in this pilot and your feedback will help HMRC evaluate the service and inform future policy decisions about the advance assurance offer and wider administration of the reliefs.
- Applications can be made by the company itself or by an agent with the company's consent.
Applicants can seek assurance on up to two areas for a single project only, chosen from the following:
- Whether the project meets the definition of R&D for tax purposes.
- Whether overseas expenditure qualifies for relief.
- Whether relief can be claimed where R&D work is contracted out.
- Whether the company qualifies for an exemption from the PAYE and NICs cap.
A separate application must be submitted for each area selected.
- HMRC aim to respond within 40 calendar days, provided all relevant information is supplied in the initial application.
- Where further clarification is needed, response times may be extended.
- To help maintain timely responses and a consistent level of service for applicants, access to the form may occasionally be temporarily paused to new applications.
- This will be clearly stated on the screen that appears after you click the application link.
Taxpayer feedback is an important part of the pilot.
- Applicants will be asked to complete a short survey and will be offered an opportunity to take part in a short follow-up call.
- Feedback will be used to inform future policy development and decisions aimed at making the administration of the R&D tax reliefs work better for SMEs.
The full claim advance assurance scheme will remain open to eligible companies.
- A company cannot apply for both the pilot and the full claim advance assurance service.
Look twice to spot bad tax advice
HMRC's 'Don't get caught out' campaign encourages contractors working through umbrella companies to take a closer look and watch out for tax avoidance.
- Contractors can use HMRC's online guidance and interactive tools to learn how to spot tax avoidance and understand how they are paid.
- Checking to see if the right amount of tax is being paid will help to avoid an unexpected tax bill later.
To help your clients identify, leave or report a tax avoidance scheme, use HMRC campaign resources in your newsletters, website updates and social media channels.
See Named tax avoidance schemes, promoters, enablers
Reminder: file monthly Construction Industry Scheme (CIS) returns or face late filing penalties
From April 2026, CIS contractors are legally obliged to file a CIS return every month, including nil returns in months where they have not used a subcontractor.
CIS contractors are expected to choose any of these options:
- File a CIS return showing payments.
- File a nil return where they have not used subcontractors.
- Submit an inactivity request which lasts six months.
CIS contractors can submit nil returns and inactivity requests through the CIS online service and some commercial CIS software.
Failure to file any kind of CIS return for the period 6 April to 5 May 2026 could result in the following late filing penalties:
- A first fixed penalty of £100.
- A second fixed penalty of £200 after two months (in July 2026).
- A tax-geared penalty after six months (in December 2026) of a minimum of £300 or 5% of any liability which should have been shown on the return.
- A further tax-geared penalty at 12 months, with the amount depending on why the return was late.
Penalties will only be issued where contractors have neither submitted an inactivity request nor filed a return.
Most CIS contractors who already file on time and submit nil returns or notify HMRC of periods of inactivity where required will be unaffected by these changes.
- HMRC are committed to working with contractors to reduce admin burdens related to these changes as far as possible.
See CIS: Contractors and Subcontractors
Updates to Automatic Exchange of Information (AEOI)
There are some changes to the AEOI policy and guidance that may affect financial institutions you represent.
- Mandatory registration requirements.
- New CRS 2.0 reporting obligations.
- Updates to AEOI guidance.
Mandatory registration requirement:
- All reporting financial institutions and trustee-documented trusts must now register for the AEOI service.
- This includes those who have no reportable accounts.
- If you represent clients that became a reporting financial institution or trustee-documented trust before 1 January 2026, and have not yet registered, they must do so now.
- In future, any organisation that becomes a reporting financial institution or trustee-documented trust must register for AEOI by 31 January following the calendar year in which they acquire that status.
New CRS 2.0 reporting obligations:
- These changes first apply to the reporting period ending 31 December 2026, which will need to be reported to HMRC by 31 May 2027.
- To prepare, financial institutions need to act now to:
- Review products and accounts to see if they are in scope.
- Update onboarding and due diligence processes.
- Review reporting systems to ensure they can produce the new CRS 2.0 data fields.
- You should make sure any impacted financial institutions you represent are ready to meet these new requirements.
HMRC have updated their guidance for the above changes.
Capital Gains Tax (CGT): Employee Ownership Trust (EOT) relief reduction
Taxpayers likely to be affected by this measure are individuals and trustees disposing of shares to EOTs.
- An EOT is a special type of trust that is set up to hold a controlling interest in a trading company, for the benefit of the employees of the company.
As announced at Budget 2025, the relief from CGT available on qualifying disposals of company shares to the trustees of an EOT was reduced from 100% to 50%.
- This applies to all disposals made on or after 26 November 2025.
From 26 November 2025, 50% of the gain on disposal to the trustees of an EOT will be treated as the disposer's chargeable gain for CGT purposes.
- The remaining 50% of the gain will not be chargeable at the time of disposal.
- Instead, it will continue to be held over to come into charge on any future disposal of the shares by the trustees of the EOT.
If consideration for a disposal is received in instalments over a period exceeding 18 months, it may be possible to apply to HMRC to pay the tax due on the disposal in instalments provided certain conditions are satisfied.
See Employee Ownership Trusts: An exit route for owner-managers
Voluntary NICs abroad
From 6 April 2026, for tax years 2026-27 onwards, the option to pay voluntary Class 2 NICs for periods abroad was removed.
- New Class 3 NICs applications for periods abroad will require 10 years of continuous UK residency or at least 10 years of paid NICs.
If you have clients who work abroad, make them aware of the changes that came into effect from April 2026.
If any clients currently pay Class 2 NICs abroad:
- HMRC will write to them from July 2026 if they are affected.
- If they pay by Direct Debit, they should not cancel it.
- HMRC will collect their final payment for the 2025-26 tax year on 10 July 2026.
The changes do not affect the ability of anyone to purchase voluntary Class 2 NICs for tax years prior to 2026-27.
HMRC encourages employers to review the latest guidance detailing the changes.
- The changes are being made to ensure that individuals building a State Pension from outside the UK have a sufficient link to this country and are paying a fairer price to do so.
See Globally mobile employees: National Insurance
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