HM Revenue & Customs (HMRC) has released Agent Update Issue 140, providing the latest guidance and policy updates for tax agents and advisers across the UK. The update highlights several regulatory and administrative changes affecting payroll agents, employers, charities, and businesses in the run-up to the 202627 tax year.
The publication forms part of HMRC's regular series of agent updates, designed to keep tax professionals informed about upcoming legislative changes and operational adjustments within the UK tax system.
Student Loan Repayments: Introduction of Plan 5 Notices
One of the key updates concerns student loan repayment processes within payroll systems. Payroll agents and employers will start receiving student loan start notices from March 2026 for borrowers who will begin repayments in April 2026. These notices will identify the correct loan plan that employers must apply through PAYE deductions.
The changes also reflect the introduction of Plan 5 student loans, which will be included in the starter checklist used when new employees join a company. Agents are advised that if employers are unsure which plan applies, they should temporarily use Plan 1 until an official start notice is received. From 6 April 2026, however, Plan 5 will become the default plan if uncertainty remains.
Employees who need to confirm their repayment plan are encouraged to check their online student loan account.
Additional Information Requirements for Tax Relief Claims
Issue 140 also highlights changes relating to corporate tax relief claims. Companies claiming certain reliefs or expenditure credits will now need to complete an additional information form before or at the same time as submitting their tax return.
HMRC plans to release an updated version of the form on 6 April 2026, aligned with the introduction of CT600P, to reduce duplicate information requests. Guidance manuals will also be updated to reflect the revised process.
Extension of National Insurance Relief for Hiring Veterans
The update confirms the extension of employers' National Insurance contributions relief for hiring veterans. Originally announced at Budget 2025, the relief will continue for two more yearsfrom April 2026 until April 2028.
Under the scheme, employers will not pay employer National Insurance contributions on qualifying veterans' earnings up to 50,270 during their first year of civilian employment. The policy aims to support the transition of former service personnel into the civilian workforce while incentivising businesses to hire veterans.
Charity Compliance Reforms
Significant reforms are also planned for charity tax compliance rules, affecting charities, Community Amateur Sports Clubs (CASCs), and the advisers who support them.
The update outlines several key changes taking effect from April 2026, including:
Agents are advised to review donation structures, monitor legacy income and prepare for updated guidance from HMRC before the rules come into effect.
Major Changes to Statutory Sick Pay
Another major development concerns Statutory Sick Pay (SSP) reforms introduced through the Employment Rights Act 2025.
From 6 April 2026, two significant changes will apply:
SSP will be paid at 80% of normal weekly earnings or the flat rate of 123.25, whichever is lower. Payroll agents should ensure payroll systems are updated and be prepared for queries from employers and employees around the transition.
New Vaping Products Duty Registration
The update also reminds businesses of the introduction of Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) as part of government efforts to tackle youth vaping.
Registration for the scheme will open on 1 April 2026, ahead of the duty's full implementation on 1 October 2026. Businesses involved in the production or importation of vaping products should ensure they register within the required timeframe.
Conclusion
Agent Update Issue 140 outlines several important developments affecting payroll, employment law, corporate tax compliance, charities, and product duties. With multiple changes scheduled to take effect in April 2026, tax agents and advisers are encouraged to prepare clients earlyparticularly in areas such as student loan deductions, Statutory Sick Pay reforms, and updated reporting requirements.
For professionals working in payroll, tax advisory, or corporate compliance, the latest HMRC update serves as a reminder of the ongoing regulatory adjustments shaping the UK tax landscape.
