In this week’s detailed miscellaneous updates which you can read more about below, a new digital process must now be followed to notify VAT error corrections and new evidence requirements must be met to satisfy all new PAYE claims for pensions tax relief. From 1 October 2025, agents are now able to reactivate Self-Assessment (SA) for their clients by calling the Agent Dedicated Line (ADL).
In other news this week:
New online process for VAT error correction after withdrawal of VAT 652
In early September, HMRC withdrew VAT Form 652 for VAT corrections. A new process must now be followed to notify VAT error corrections. More detail on this change is set out in updated guidance. The process is essentially now digitalised, with a paper option available for anyone who is exempt from Making Tax Digital for VAT. According to HMRC, the aim of this change is to improve efficiency and accuracy.
Errors should now be corrected online by businesses by logging in using their Government Gateway credentials and using the Check how to tell HMRC about VAT Return errors tool. HMRC has also confirmed that agents are able to submit corrections on behalf of clients through the same system.
Any business with a confirmed exemption from MTD for VAT should continue to notify HMRC about errors in their VAT returns in writing. Written notifications should be sent to the VAT error correction team either by post at BT VAT, HMRC, BX9 1WR, or by email at inbox.btcnevaterrorcorrection@hmrc.gov.uk.
Agents can also write on behalf of clients using the same contact details to correct errors, however HMRC had asked that the online route be used by agents where possible. The online tool can also be accessed by agents on GOV.UK. This will take the agent to the landing page to submit the error correction notice or to the authorisation pages to support setting up authorisation via the required digital handshake.
On 5 September, guidance within VAT Notice 700/45 section 4 was updated with information on how and when to correct VAT errors using the new process. However, HMRC acknowledges that it was not clearly communicated that authorised agents can also use the online error correction tool.
New evidence requirements for PAYE pensions tax relief claims
From 1 September 2025, all PAYE claims for pension tax relief should be made online or by post but must also be supported by evidence from the pension provider or employer. Supporting evidence is needed for each tax year that a claim is made. Information on the new process and evidence requirements is set out in Newsletter 172: August 2025 of the Pension Schemes Newsletter.
Anyone who is not in Self-Assessment (SA) is able to contact HMRC to claim tax relief in respect of pension contributions in certain scenarios. Successful claims are reflected via an adjustment to the taxpayer’s tax code. SA taxpayers should continue to claim relief via their SA tax return.
Broadly, the evidence required is a letter or statement from the pension provider or a payslip from the employer which should provide the following details:
- The claimant’s full name,
- Details of the pension contributions paid and the tax year they relate to, and
- If the claim relates to a workplace pension, that the claimant received 20 percent tax relief automatically from their employer.
SA client reactivation
From 1 October 2025, agents are now able to reactivate SA for their clients by calling HMRC on the ADL. Reactivation means that if that client was previously in SA and did not submit a tax return in 2023/24, they can be reactivated before submitting their 2024/25 tax return and do not need to register again, as they will already have a Unique Taxpayer Reference number.
More information on this will be shared by HMRC in the October Agent Update later this month. This new process follows recommendations and discussions between HMRC and Chartered Accountants Ireland and the other professional bodies at recent stakeholder forum meetings.
The new service can only be accessed by selecting the relevant option from the ADL menu meaning it is not possible to be transferred to this from other HMRC helplines or to request this via web chat. HMRC have confirmed that it is possible to discuss up to five client reactivations in one single call.
It should also be noted that this service is for reactivations only. If the client was not previously in SA, the normal SA registration process must be completed.
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