HMRC publishes Agent Update 81

10 December 2020

The latest Agent Update issue has been published by HMRC, and includes articles that discuss Self-Assessment, along with technical updates and reminders relating to Covid-19, the EU transition, tax, customs and PAYE. The update is aimed at tax agents and advisers with the purpose of providing them with the latest news and guidance.

Self Assessment – Tax Agent Toolkits

HMRC has published 19 toolkits which include information relating to common errors that are observed on filed returns. The toolkits are updated on an annual basis to ensure that any changes that have occurred are considered, and they contain:

  • A checklist to help identify the main areas in which errors occur
  • Explanatory notes identifying the underlying types of error, how they can be avoided and an overview of the tax treatment
  • Links to the appropriate online guidance

The toolkits are also updated each year in relation to any changes coming from the relevant Finance Act.

The Agent Update highlights eight of these toolkits which should assist in ensuring there are minimal errors on Self-Assessment tax returns for 2019-20.

Business profits – This includes detailed sections on record keeping, business income, expenditure, stock and work in progress

Capital allowances for plant and machinery – This includes comprehensive information relating to record keeping, acquisitions and disposals and non-business use of cars

Capital Gains Tax for shares – This addresses the five main areas of risk: record keeping, disposals, valuations, expenditure and reliefs

Capital Gains Tax for land & buildings – This toolkit addresses disposals, valuations, expenditure and reliefs, including Private Residence Relief, Gift Relief, Roll-over Relief, Incorporation Relief, Entrepreneurs’ Relief and Reinvestment Relief

Capital v revenue expenditure – This looks at acquisition, improvement and alteration of assets, legal and professional fees, finance costs, IT costs and corporate intangible assets

Income Tax losses – This includes detailed information about availability and use of trade losses, capital losses and partnership losses

Private and personal expenditure – This toolkit includes guidance on record keeping, personal bills, travel and subsistence, entertaining, gifts, subscriptions and sponsorship, drawings and capital account

Property rental -  This addresses property income receipts, deductions and expenses, reliefs and allowance. There is also a more general section that covers areas such as rental business losses.

Paying HMRC

In the Agent Update, there is confirmation that there are several methods of paying HMRC.

Payments can be made by:

  • Direct Debit
  • Faster Payment
  • BACS
  • Personal debit card
  • Corporate credit and debit card *

*Payments made by corporate credit card will incur a surcharge, which is sent directly to merchant acquirers, card schemes and card providers. This will also be applicable to corporate debit cards from 1 November 2020. An alternative payment method should be considered if the surcharge is to be avoided.

Those who are experiencing difficulties should contact HMRC as soon as possible.



Click here to explore the content of the Agent Update in full.

Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.