Published six times a year, HMRC says the publication is aimed at ‘giving employers and agents the latest information on topics and issues that may affect them’.
We highlight the payroll topics covered in the April 2025 edition:
- The introduction section talks about the Spring Statement consultations and provides a helpful link to HMRC’s ‘Check the status of tax policy consultations’. Here, you can view the consultations that are open for responses, all detailed in ICB’s Spring Statement report for members only; and
- The section also mentions the new digital service that will allow taxpayers to report and pay High Income Child Benefit Charge through changes to their PAYE tax code (something mentioned in our report). It also talks about the Private Intermittent Securities and Capital Exchange System (PISCES), a new type of regulated stock market that will be available later in 2025. ICB has not covered this or the tax implications in relation to employees trading their shares on PISCES;
PAYE
This is a large section and does not come with hyperlinks to each topic. Therefore, ICB provides the following summary as to the contents:
- The new rates of the National Minimum / Living Wage. We are pleased to see the Bulletin is specific that these rates are payable from the first pay reference period starting after 01 April 2025 (though can be made from 01 April 2025 if this is what the client wants);
- Changes to company size thresholds for off-payroll working and we recognise that this will not impact all members. From 06 April 2025, legislation changed the definition of a company classified as ‘small’. The Bulletin advises this has no operational payroll impact until 06 April 2027, at the earliest, because a company’s size is determined by reference to previous years;
- Within this section, the Student Loan thresholds and rates for 2025/26 are detailed. The article also reinforces the message that if a start notice is received from HMRC, employers must operate this in payroll software, even if earnings are not high enough for a deduction to be made;
- As we have covered on Wages Wednesdays, the PAYE section reminds employers that 2025/26 sees changes to employer National Insurance percentages, Employment Allowance eligibility and the rate of Small Employers’ Relief;
- There is a reminder that if an employee is paying the reduced rate of National Insurance (letters B, I, T and / or E), the Full Payment Submission (FPS) will reject of the gender of the employee is male and the date of birth is on or after 06 April 1961;
- There is a section within PAYE about the obligation to produce a P11D and P11D(b), all of which will be covered in May’s Wages Wednesday; and
- There is a section that talks of the benefits of paying the PAYE and / or VAT bill by Direct Debit
Tax Updates and Changes to Guidance
This is another section that does not come with hyperlinks to each topic, so ICB summarises the contents:
- If you are using a Freeport and Investment Zone Special Tax Sites NI category letter, don’t forget that you must also include a workplace postcode in the FPS from this tax year;
- There is an open consultation on promoting electronic invoicing across UK businesses and the public sector and both HMRC and the Department for Business and Trade (DBT) are keen to understand how e-invoicing may align with you or your customers’ businesses;
- There is confirmation of the Official Rate of Interest for 2025/26, something ICB has communicated to members already; and
- The Income Tax treatment of Double Cab Pickups has changed and there are links to HMRC’s guidance
General Information and Customer Support
The final section (with no hyperlinks) and includes information on:
