HMRC have published their Employer Bulletin for August 2025. We have summarised the key content for you, which links to our detailed guidance on the topics covered.
P11Ds and P11D(b) for the 2024-25 tax year
The deadline for informing HMRC online about any Class 1A National Insurance Contributions (NICs) owed for the tax year ended 2024-25 was 6 July 2025.
- Class 1A NICs must also have been paid by 22 July 2025.
- If you have still not done this, you need to submit without delay to avoid any further Penalties.
How to file
- Use either:
- HMRC's PAYE Online service for up to 500 employees.
- Commercial payroll software.
- You must submit all your P11Ds and the P11D(b) together in one online submission.
What to file
If you paid any benefits or non-exempt expenses, or if you payrolled any benefits, you need to file a P11D(b).
- Include the total benefits liable to Class 1A NICs, even if some or all of them were taxed through payroll.
You need to submit a P11D for each employee in receipt of benefits or non-exempt expenses unless you registered with HMRC online before 6 April 2024 to tax them through payroll.
- If you did not register online but then went on to tax some or all benefits through payroll, you must still submit a P11D for all benefits that were not payrolled.
If you have not already registered online to payroll your company benefits, you may wish to do so now ahead of the 2026-27 tax year.
- This will mean you no longer need to send P11Ds if you can payroll all your benefits.
- HMRC no longer accepts informal payrolling of benefits.
No benefits to report?
- If HMRC sent you a notice to file but you have nothing to report, submit a 'No return of Class 1A NICs' form.
Helpful tips to avoid common mistakes when completing P11D and P11D(b).
- Use accurate start and end dates for Company cars: do not put '6 April 2024' as the start date or '5 April 2025' as the end date, unless they genuinely are the dates your employee received or returned a company car.
- Include CO2 emissions for electric cars.
- Include zero-emission mileage for hybrids (1-50g/km CO2).
- Submit all P11Ds and P11D(b)s together.
- Only submit once you have completed all P11Ds and your P11D(b).
- If you make a mistake, you will need to submit multiple amendment forms, which will significantly slow down the process.
- Only send one P11D(b) per PAYE scheme, showing the total amount due.
The new version of the Company car tax calculator is available on HMRC's website.
- Any changes to an employee's car within the tax year must be submitted to HMRC on form P46(Car).
See P11D: Reporting benefits and expenses
PAYE Settlement Agreement (PSA) calculations and payment
The easiest way to submit your PSA is using HMRC's Online service.
- This will determine the amount of tax and Class 1B NICs due for the 2024-25 tax year.
If you have no benefits to declare, you must submit a nil calculation.
To submit, you will need:
- PAYE reference number.
- Tax year of calculation.
- Types of expenses and benefits: you should only report those included in the PSA.
- Number of employees receiving each expense or benefit.
- Correct rate of tax for each employee.
You must:
- Group the costs for each benefit together.
- Include all your calculations (English, Scottish and Welsh) on one submission.
Any tax and NICs must be paid by 22 October 2025 (19 October 2025 if not paying electronically).
- HMRC will automatically issue a payslip confirming the amount due and your payment reference number when your calculation is processed.
- If you do not have a payslip, you must use the reference number quoted in the covering letter when your PSA was first formalised (SAFE reference).
- You can get your SAFE reference by phoning the Employers Helpline on 0300 200 3200.
- Do not use your submission reference, PAYE Accounts Office reference or PAYE reference number.
- You must submit your calculations before making payment, but you do not need to wait until HMRC has processed your PSA calculation to make payment.
- You may be charged interest on any amounts paid late.
See PAYE Settlement Agreements
Implementation of the Employment Rights Bill
The Employment Rights Bill will provide a new baseline of security for workers, including:
- Through day one protection from unfair dismissal.
- Increasing protection from sexual harassment.
- Strengthening Statutory Sick Pay.
- Ending exploitative zero-hours contracts and tackling fire and rehire.
On 1 July 2025, the government published the Employment Rights Bill Implementation Roadmap.
- This provides clarity for employers and workers on how and when the government will engage and consult on the detailed implementation of Bill measures once it becomes law, and when measures will take effect.
- It includes some measures related to industrial action and trade unions will come into effect in 2025.
- Policy measures will be introduced in phases from April 2026.
- The Bill ends exploitative zero-hour contracts and gives workers predictable hours and income, to be introduced from 2027.
- The Department of Business and Trade will take a phased approach to consultations over the summer, autumn and winter 2025, to early 2026.
Employers' PAYE disputed charges
From 31 July 2025, employers can report a PAYE dispute to HMRC using a New online form.
- This form can be used when it is believed an employer's PAYE bill is incorrect, help is needed in finding or correcting the error, and it has not been possible to fix the issue using the GOV.UK guidance.
- HMRC will acknowledge receipt of the form by email and provide a reference number before making contact within 40 working days to discuss the issue.
- From 31 August 2025, you will no longer be able to report an employer's PAYE dispute through HMRC's helplines or webchat.
Parents of teens are reminded to go online to extend their Child Benefit claim by 31 August 2025
- Parents must confirm if their teenagers are staying in full-time education or training before the deadline of 31 August 2025.
- If they do not, their Child Benefit will stop.
- They can extend their Child Benefit claim:
- Online.
- Through the HMRC app.
- By scanning the QR code in HMRC's letter.
- If your employees or their partners have opted out because of their income, they still need to extend their claim.
- The High-Income Child Benefit Charge threshold has now increased to between £60,000 and £80,000.
- You should encourage your employees to use the online Child Benefit tax calculator to get an estimate of how much benefit they will receive and what the charge may be.
- It may now be worthwhile for them to opt back into payments or make a claim if they have not done so before.
HMRC wins landmark Upper Tribunal (UT) case against mini-umbrella company fraud
Mini-umbrella company fraud is a type of fraud within the temporary labour market.
- From April 2026, recruitment agencies will be responsible for ensuring the correct tax is paid on workers' income.
- Where no agency is involved, the end client will be liable.
On 17 July 2025, the UT ruled that the mini-umbrella company model used in the case was fraudulent.
- This confirms HMRC's ability to deregister these companies from VAT.
- The UT confirmed that these mini-umbrella companies fraudulently exploit the VAT Flat Rate Scheme.
- Mini-umbrella companies also exploit the Employment Allowance.
- The UT decision will help create fair competition for legitimate businesses. It also protects workers who unwittingly become victims of these fraudulent schemes.
Read our full summary of the case: HMRC able to force VAT deregistration
Don't let your contractors fall into the trap of bad tax advice
Anyone working for you as a contractor can find out more about tax avoidance from HMRC's:
- Online guidance.
- Interactive tools.
- Personal stories from people caught up in tax avoidance.
Contractors can also review HMRC's published list of Named tax avoidance schemes and their promoters.
- HMRC never approves tax avoidance schemes.
Spotlight 69: liquidation of a Limited Liability Partnership (LLP) used to avoid Capital Gains Tax (CGT)
Spotlight 69 highlights a tax avoidance scheme being marketed to landlords, which enables them to transfer their property business to a company using an LLP to save CGT.
HMRC states that the schemes typically operate as follows:
- An existing business operates for most of its active life as an unincorporated business.
- The individual landlord incorporates an LLP.
- The landlord transfers their rental properties, often with substantial accrued capital gains, to the LLP at market value.
- After a short period, the LLP is put into Members’ Voluntary Liquidation (MVL).
- The properties are then sold to a limited company owned by the landlord or connected parties (if continuing with the business).
- For the purposes of the MVL, the LLP is seen to acquire its assets at the time of the contribution for their market value.
It is claimed that this structure avoids CGT, Stamp Duty Land Tax, and has potential Inheritance Tax benefits.
You should be alert to the details contained in Spotlight 69.
- It is HMRC's view that these schemes do not work, and they will challenge anyone promoting such arrangements.
- People who use these arrangements may have to pay more than the tax they tried to avoid, as well as paying interest, penalties and high fees.
- If you think you are already involved in this arrangement and want to get out, HMRC can help.
You can Report tax fraud and tax avoidance arrangements, schemes and the person offering them to HMRC.
See Spotlight 69: Liquidation of an LLP used to avoid CGT
Preparing businesses for Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) scheme
The UK Government is introducing a VPD at a flat rate of £2.20 per 10ml of vaping liquid, alongside a VDS scheme requiring stamps to be affixed to vaping products.
- These come into force on 1 October 2026.
- From 1 April 2026, businesses that manufacture, import or store vaping products in the UK must apply for approval for the VPD and VDS scheme, ahead of them coming into force.
HMRC's guidance covers:
- Who these duties affect.
- What vaping products are covered.
- Applying for approval.
- Record keeping.
- Next steps and contact information.
See HMRC's guidance on Preparing for Vaping Products Duty and the Vaping Duty Stamps Scheme
Changes to Overseas Workday Relief (OWR)
From 6 April 2026, the previous rules for non-domiciled status ended and have been replaced by a system based on tax residence.
- Subject to transitional arrangements, employees eligible for foreign income and gains relief will also be eligible for relief on relevant employment income which relates to duties performed outside the UK.
HMRC are running a live webinar on 16 September 2025, which will help you understand the main changes you need to be aware of, including:
- How OWR has changed.
- New financial limits.
- The transitional arrangements.
- Employee record keeping requirements.
You can register for the live webinar Here.
See Overseas Workday Relief (OWR)
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