This week’s miscellaneous updates – 12 January 2026

In this week’s detailed miscellaneous updates which you can read more about below, HMRC has issued a response to issues raised for VAT error correction notices and the latest Agent Update is available. HMRC has also announced its revised late payment and repayment interest rates. In other news this week:

• The December 2025 HMRC Stakeholder Digest is now available,
• The Institute for Fiscal Studies has published new trends in self-employment and top incomes and a podcast on how to fix VAT,
• The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place, and finally,
• Check HMRC’s online services availability page for details of planned downtime and the online services affected.

VAT error correction notices

During a HMRC VAT registration subgroup meeting in 2025 (the Institute is represented on this forum),  issues were raised in relation to VAT error correction notices. HMRC has responded as follows:

“The online VAT Repayment tracker currently allows the user to view and track progress of all repayments due, this includes VAT repayments, officers assessments, and error correction notifications.  However as displayed below, it does not detail what contributes to a repayment, and it does not advise if a submission was made by the customer or their agent.

We are speaking to our IT partners to seek improvements to what is currently shown.”

Agent Update 138

Agent Update: Issue 138 is available now. Get the latest guidance and information on:

• ·operational activity following publication of the independent review of the loan charge,
• important changes to Automatic Exchange of Information: action required,
• get ready to file Self Assessment tax returns,
• mandatory tax adviser registration: policy paper published with guidance coming soon, and
• Making Tax Digital support and resources for agents.

HMRC interest rates

The Bank of England Monetary Policy Committee announced a reduction in the Bank of England base rate to 3.75 percent from 4 percent last month. As a consequence of HMRC interest rates being linked to this, HMRC’s interest rates have been reduced.

These changes took effect as follows:

• 7.75 percent is the new rate of late payment interest from 29 December 2025 for quarterly instalment payments and 9 January 2026 for non-quarterly instalments payments, and
• 2.75 percent is the new rate of repayment interest from the same dates.