Updates from HMRC: July 2025

Information from the Revenue which could affect AAT members.

HMRC periodically contacts AAT and other membership bodies on trials, changes and challenges that our members may wish to hear about. Here’s the latest.

Trial to suppress the CT208 reminder letter

HMRC is trialling not sending Corporation Tax reminder letters (CT208) to 5% of customers who have an authorised agent from July 2025. It’s testing whether removing the CT208 will impact customers who are supported by an agent.

To be able to monitor the impact of these letters on managing debt, the trial is due to end in December 2025. However, if the Revenue sees a substantial increase in debt overall, it will halt the trial completely.

All customers can view their liabilities and payments in their HMRC online account, which shows their Live Accounting Period through the ‘Accounting Period Overview’ section. Agents can also view liabilities and payment on their clients’ behalf on HMRC’s Corporation Tax for Agents online service.

HMRC will continue to send statutory Corporation Tax letters. Companies or associations must file a Company Tax Return if they get a ‘notice to file a Company Tax Return’ from HMRC. The deadline for filing is on the notice to file. All new Corporation Tax customers receive information on the reporting and Corporation Tax payment process and are signposted to guidance on GOV UK.

Class 2 NICs calculations

An issue has been affecting some Self Assessment taxpayers relating to Class 2 National Insurance contributions for the last tax year. The problem led to incorrect tax calculations being issued.

HMRC had hoped that a fix would be implemented by the end of July. However, this is taking longer than anticipated and is now expected to be resolved by the end of September 2025. Unfortunately, this also means that incorrect Class 2 NIC letters will continue to be sent until this date.

HMRC says, “We are sorry for the delay, and we understand that this may cause difficulties […] we appreciate your patience during this time.

“We would like to reassure you again that customers who may have made a payment will either be refunded or have a credit added to their self-assessment statement. There should be no long-term impact.”

Self assessment repayments failing automation

In July’s Agent Update, HMRC reminded Agents of the common reasons why repayments are inhibited. The reasons are listed in the GOV UK document SAM113010 – Repayments: repayment work lists.

PAYE codes 2024/25

Some agents are still experiencing an issue with PAYE codes for 2024/25 not being visible. HMRC would like to know if other agents are experiencing this.

If the code is not visible, it asks that Agents report the issue to the Online Service Helpdesk.

Personal tax query resolution service for agents

HMRC says this service is specifically for PAYE and Self Assessment queries for individuals that haven’t been resolved by its Agent Dedicated Line or Agent Webchat. The service is not available for employer-related queries.

Most employer-related queries (and issues for other tax regimes), can be picked up by HMRC’s parallel Agent Account Managers service, which mediates with one of HMRC’s business areas to reach a satisfactory conclusion to issues. 

Before using the Query Resolution service, you must have: 

• Checked the ‘Where’s my Reply’ tool, and waited at least 20 working days since the reply date given by the tool.
• 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.

This service is not available for progress chasing repayments. 

HMRC reports the form has been completed incorrectly in 36% of referrals; therefore it is important that criteria is met before submitting a query. It has added interactive steps into the process to ensure the ‘Where’s my Reply’ tool has been used, and the criteria considered.

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