On 20 August 2025, HMRC published their latest Employer Bulletin. HMRC says the publication is a ‘bi-monthly magazine for employers and agents that gives up-to-date information on payroll topics’.
We highlight the payroll topics covered in the August 2025 edition:
Finance Bill 2025
The introduction section details that Legislation Day on 21 July 2025 saw the publication of draft legislation for inclusion in the next Finance Bill. ICB has highlighted the measures members will be interested in but the Employer Bulletin highlights the following of interest to employers:
PAYE
This section covers the following topics:
- The first section covers the 2024/25 P11D and P11D(b) filing and payment deadlines, both of which have passed. However, it does contain some useful information and links to the Payrolling Benefits and Expenses Service (PBIKs). ICB re-iterates that you should only register for tax year 2026/27 if you are ready and have all your processes in place to cope with the real-time taxation. This also applies before considering enrolling your clients;
- The next section refers to PAYE Settlement Agreements and contains the reminder that if a PSA exists, HMRC must be told of the value, even if there is nothing to declare for 2024/25. The section is also a reminder of the tax and Class 1B deadline of 22 October 2025 (or 19 October 2025 if the payment is made by cheque);
- Another section tells employers that from 31 July 2025, employers will be able to report a PAYE dispute to HMRC using a new online form and links to the ‘Get help to correct an employer PAYE bill’ page on Gov.UK. Note that, from 31 August 2025 you will no longer be able to report an Employers PAYE dispute through HMRC’s helplines or webchat;
- The final section details the Upper Tier Tribunal umbrella company fraud case (1) ELPHYSIC LIMITED (2) PHYARREIDON LIMITED (3) ROSSCANA LIMITED (4) ZRAYTUMBIAX LIMITED v THE COMMISSIONERS FOR HIS MAJESTY’S REVENUE AND CUSTOMS [2025] UKUT 00236 (TCC) and the implications. From April 2026, recruitment agencies will be responsible for ensuring the correct Income Tax is paid on workers’ income. Where no agency is involved, the end client will be liable. It is worthwhile reviewing HMRC’s guidance on mini umbrella company fraud if you believe you are impacted.
Tax Updates and Changes to Guidance
This is section is important regarding the implementation of the Great British Employment Rights Bill and how the Department of Business and Trade (DBT) published their Implementation Roadmap in July 2025. Of note are the Statutory Sick Pay (SSP) changes from April 2026 and the removal of the service criterion for Statutory Paternity Leave (and Pay) and Unpaid Parental Leave. This means that both employment rights will apply from day one of employment.
General Information and Customer Support
The final section includes information on:
- A live webinar regarding changes to Overseas Workday Relief;
- HMRC’s ‘don’t get caught out’ campaign under the heading ‘Do not let your contractors fall into the trap of bad tax advice’;
- Another reminder that parents of children between 16 and 19 must go online to extend Child Credit if the child is staying in full time education or training. This must be done before the deadline of 31 August 2025. ICB repeats that this is not an employer responsibility but something that is good to know
For Bookkeepers
The bi-monthly Bulletin is always useful source of information that ICB continues to promote.
