The HMRC Employer Bulletin, issued six times a year, serves as a vital source of information for UK employers and agents. It highlights important updates, legislative changes, and procedural guidance that affect payroll, benefits, tax administration, and employment law.
The August 2025 edition is particularly significant due to the introduction of draft legislation for the Finance Bill 2025–26 and several compliance-focused initiatives.
Employers need to stay informed and compliant as HMRC sharpens its focus on digital reporting, tax avoidance schemes, and employer obligations under PAYE.
What Is the HMRC Employer Bulletin and Why Is August 2025’s Edition Important?
The Employer Bulletin is a crucial publication issued by HMRC six times annually. It offers updates and information to help employers remain compliant with their legal and administrative obligations.
The August 2025 edition introduces several new rules, enforcement measures, and legislative developments that employers must be aware of to avoid penalties and improve payroll accuracy.
Key highlights from the August issue include:
- Revised P11D and P11D(b) filing procedures
- PAYE Settlement Agreement (PSA) calculation and payment processes
- Introduction of Vaping Products Duty
- Implementation updates on the Employment Rights Bill
- New reporting structure for PAYE disputes
- HMRC’s tribunal victory addressing mini umbrella company fraud
These developments reflect HMRC’s ongoing digital transformation and tighter compliance strategies.
What Are the Key Changes to P11D and P11D(b) Reporting for the 2024 to 2025 Tax Year?
Employers were required to submit online P11D and P11D(b) forms by 6 July 2025. Any owed Class 1A National Insurance contributions had to be paid by 22 July 2025. Employers failing to meet these deadlines must act immediately to avoid penalties.
Submissions must be made online using either HMRC’s PAYE Online service or commercial payroll software. Informal payrolling is no longer accepted and any failure to submit the forms correctly could result in fines.
Employers must submit all forms in one session, as partial submissions over several days are not allowed. This change helps to streamline processing and reduce errors.
Filing Requirements
| Requirement | Description |
| Form P11D | For each employee receiving taxable benefits and non-exempt expenses |
| Form P11D(b) | To report the employer’s Class 1A NIC liability |
| Submission Method | Online only via PAYE Online or payroll software |
| Combined Submission | All P11Ds and the P11D(b) must be submitted together in a single session |
If all benefits were payrolled, and the employer registered by 6 April 2024, a P11D may not be needed. However, a P11D(b) must still be submitted if Class 1A NICs are due.
Tips to Avoid Common Errors
- Ensure accurate CO2 emissions data for electric or hybrid vehicles
- Use correct start and end dates for company car benefits
- Submit only one P11D(b) per PAYE scheme
- Use the adjustments section if required
- Avoid missing or mismatched totals between forms
The updated Company Car Tax Calculator should be used to confirm vehicle benefit values. Employers must also submit a P46(Car) for any car changes during the year.
How Does the PAYE Settlement Agreement (PSA) Process Work in 2025?
The PAYE Settlement Agreement allows employers to pay tax and NICs on certain expenses and benefits on behalf of their employees, simplifying administration where direct reporting is impractical.
HMRC has enhanced the process for submitting PSA calculations, and employers are now expected to use the online PSA calculation tool. This tool determines the tax and Class 1B NIC liability for the 2024 to 2025 tax year.
PSA Submission and Payment Schedule
| Task | Deadline (Electronic Payment) | Notes |
| Submit PSA Calculation | Before 22 October 2025 | Include tax and Class 1B NIC calculations |
| Make Payment | By 22 October 2025 | Use your SAFE reference when paying |
| Postal Payment Deadline (if applicable) | By 19 October 2025 | Only for non-electronic payments |
To complete a submission, employers need:
- Employer PAYE reference
- Details of benefits covered under the PSA
- Tax year of calculation
- Number of employees affected
- Correct tax rates based on location (England, Wales, Scotland)
If the PSA includes multiple categories like staff entertainment or small gifts, employers must aggregate costs for each benefit type before submission.
Payments must not be made until calculations are submitted. A payslip will be issued automatically after processing. Using an incorrect reference, such as your PAYE number instead of the SAFE reference, could result in delays.
What Should Employers Know About PAYE Disputed Charges and the New Reporting Process?
From 31 July 2025, a new online form is available for employers to report PAYE charge disputes. This form must be used instead of contacting HMRC through helplines or webchat.
From 31 August 2025, HMRC will stop accepting PAYE dispute reports through all previous channels. Employers should begin using the new form immediately to avoid delays in resolving charge discrepancies.
The new system is designed to improve response times, reduce administrative overhead, and increase the accuracy of PAYE billing processes.
How Is HMRC Tackling Mini Umbrella Company Fraud in 2025?
Mini umbrella company fraud involves the creation of multiple limited companies to exploit tax reliefs and NIC allowances. HMRC has increased enforcement in this area following a landmark ruling from the Upper Tribunal in July 2025.
In this case, HMRC successfully challenged the use of multiple mini umbrella companies to commit VAT fraud and misuse employment allowance.
Key developments include:
- Deregistration of multiple companies from the VAT register
- Confirmation that these structures were intentionally designed to exploit the Flat Rate VAT Scheme
- Future accountability assigned to recruitment agencies starting April 2026
Employers who outsource staffing through recruitment agencies should audit their supply chains carefully and avoid working with agencies using such models.
What Tax Avoidance Scheme Is Highlighted in Spotlight 69?
Spotlight 69 targets schemes involving the liquidation of LLPs to avoid Capital Gains Tax (CGT). Typically marketed to landlords and property owners, these schemes involve transferring properties into an LLP, followed by liquidation and sale to a connected company.
HMRC argues that:
- The arrangements do not work as claimed
- Users may owe additional tax, interest, and penalties
- Promoters of these schemes will be subject to enforcement action
Employers and individuals should avoid entering such arrangements and report any involvement to HMRC for potential remediation.
How Will the Employment Rights Bill Impact Employers and Workers?
The Employment Rights Bill introduces new protections and policy changes that will roll out in phases beginning in 2025. The bill aims to modernise workplace rights and increase security for workers.
Key Measures in the Bill
| Area of Change | Proposed Impact |
| Unfair Dismissal | Day-one protection introduced |
| Statutory Sick Pay | Eligibility broadened and strengthened |
| Zero-hours Contracts | Ended, replaced with predictable working hours |
| Sexual Harassment Protections | Increased employer liability |
| Parental Leave Entitlement | Available from day one of employment (from 2026) |
The phased implementation will begin in 2025, with full rollout expected by 2027. Employers must begin revising employment policies, contracts, and onboarding processes accordingly.
What Is the New Vaping Products Duty and How Should Businesses Prepare?
From 1 October 2026, a new Vaping Products Duty will be introduced, alongside a Vaping Duty Stamp scheme.
This duty applies to all vaping liquids sold in the UK and will be charged at a flat rate of £2.20 per 10ml. Businesses involved in manufacturing, importing, or storing vaping products must register for approval starting 1 April 2026.
Covered by the Duty
- Vaping liquids with or without nicotine
- Refill containers and pre-filled cartridges
- Imported or domestically produced products
Required Actions
- Register for the Vaping Products Duty and Duty Stamps scheme
- Maintain records for compliance purposes
- Ensure duty stamps are affixed correctly
Businesses failing to comply may face financial penalties and product seizures. HMRC will provide additional guidance and support during the registration period.
How Is Overseas Workday Relief Changing in April 2025?
From 6 April 2025, the rules for claiming Overseas Workday Relief (OWR) have changed. The new system is based on UK tax residency rather than domicile status.
Eligible employees who are tax-resident in the UK but perform duties overseas may qualify for tax relief on foreign income, provided they meet strict conditions.
Key Changes
- Transitional arrangements apply to individuals previously eligible under the old rules
- Employees must maintain detailed records of workdays spent abroad
- Employers should be prepared to provide evidence of location-based duties
- A live HMRC webinar on 16 September 2025 will address these changes
This change will affect internationally mobile employees and requires close attention to payroll compliance.
How Can Employers Protect Contractors from Poor Tax Advice?
Many contractors continue to be misled by tax avoidance schemes promoted through umbrella companies. HMRC’s ongoing campaign encourages employers to educate their workforce and identify potential risks.
Employers should:
- Share HMRC’s online guides and video content
- Direct contractors to the interactive payslip checking tools
- Promote awareness of listed tax avoidance schemes
By proactively engaging with contractors, businesses can help prevent costly disputes and support their workforce in making informed tax decisions.
What Should Parents Know About Extending Child Benefit Claims by 31 August 2025?
Employees with children aged 16 to 19 must confirm their child’s full-time education or training status by 31 August 2025 to continue receiving Child Benefit.
Even if parents have opted out of payments due to high income, they still need to extend the claim to ensure eligibility continues.
Key updates:
- Online or app-based renewals available
- The income threshold for the High-Income Child Benefit Charge has increased to £60,000–£80,000
- Use of the online Child Benefit calculator is encouraged
Employers should inform staff of the deadline to help ensure they do not miss out on potential entitlement worth up to £1,354 per year.
How Can Employers Access and Use the HTML Version of the Employer Bulletin?
The HTML version of the Employer Bulletin is designed for accessibility and ease of navigation. It supports screen readers and can be saved or printed directly from the browser.
Features include:
- Interactive table of contents
- Category headings for faster navigation
- Print and save-to-PDF options compatible with most browsers
- Fully mobile-friendly format
Employers are encouraged to use the HTML version for quick reference and team distribution.
What Customer Support and Additional Resources Are Available from HMRC?
HMRC continues to support employers with a range of resources including:
- Employer email alert service for latest bulletins
- Live and recorded webinars
- Calculators for PAYE, Class 1A NICs, and benefits
- Dedicated helplines for payment and submission queries
The HMRC Charter and Principles of Support also guide employers with accessibility needs or complex cases requiring additional help.
Conclusion
The August 2025 HMRC Employer Bulletin delivers crucial updates that every UK employer must review and act upon.
From revised P11D and PAYE processes to upcoming legislation like the Employment Rights Bill and Vaping Products Duty, these changes reflect HMRC’s continued push for compliance and modernisation.
Employers should stay proactive, utilise available resources, and ensure timely submissions to avoid penalties.
Keeping up with HMRC’s guidance is essential for managing responsibilities efficiently and maintaining a compliant payroll environment.
Frequently Asked Questions
What happens if an employer misses the P11D submission deadline?
Failure to submit P11D or P11D(b) forms on time may result in penalties. Employers should file immediately to mitigate fines.
How can I register for the Vaping Duty Stamps scheme?
Registration for the scheme opens in April 2026 via GOV.UK. Businesses involved in vaping products must apply before the duty goes live in October 2026.
Do all employers need to submit a PSA calculation?
Only employers with a PAYE Settlement Agreement need to submit calculations. Nil returns are required if no benefits are declared.
What is a mini umbrella company?
A mini umbrella company is a small company set up to reduce tax liabilities illegally. HMRC now considers these structures fraudulent.
Can a parent extend a Child Benefit claim if their income is over £60,000?
Yes, but they may be subject to the High-Income Child Benefit Charge. Even if payments are opted out, claims still need to be extended.
How does Overseas Workday Relief benefit employers?
It reduces tax on employment income for duties performed abroad, provided the employee meets specific residency criteria.
Where can employers get help filing PAYE returns?
HMRC offers live webinars, video tutorials, and a support helpline. Employers can also use accredited payroll software for submissions.
