Are you keeping up with HMRC’s evolving employer updates? The August 2025 Employer Bulletin, published on 20 August 2025, provides essential guidance for UK employers, payroll professionals, and agents on current payroll procedures, tax updates, and employment law changes.
This latest edition covers updates on P11D submissions, PAYE Settlement Agreements, Employment Rights Bill implementation, the Vaping Products Duty, and Child Benefit reminders. It also introduces live webinars, fraud warnings, and new support for contractors.
Understanding these updates is critical to remain compliant, avoid penalties, and support your employees effectively. Let’s explore what’s new and how these developments could impact your business operations this year and beyond.
What’s Inside the August 2025 HMRC Employer Bulletin?
The August 2025 Employer Bulletin, HMRC’s bi-monthly update, provides essential payroll and tax compliance information for employers, agents, and payroll professionals.
This edition covers:
- P11D reporting for the 2024–2025 tax year
- PAYE Settlement Agreement calculations and deadlines
- Employers PAYE disputed charges
- Employment Rights Bill implementation roadmap
- Preparing for the Vaping Products Duty and Vaping Duty Stamps scheme
- Child Benefit extension reminders
New additions in this edition include:
- Live webinars on Overseas Workday Relief changes (post non-domicile reform from April 2025)
- Company Car Tax Calculator updates and P46 Car form reminders
- HMRC’s “Don’t Get Caught Out” campaign against bad tax advice
- HMRC’s support framework for customers who need extra help
Employers are encouraged to register for HMRC’s employer email alert service to receive notifications when each bulletin is released.
Why Does It Matter?
This bulletin contains significant policy updates and procedural guidance that directly impact employer obligations and employee benefits.
Here’s why it’s crucial:
- It helps avoid compliance issues related to PAYE and benefit submissions
- It informs payroll teams of changing tax and National Insurance rules
- It introduces updates on employment law reform and workers’ rights
- It outlines new reporting systems and deadlines, including PSA and Child Benefit
- It prepares businesses for future regulatory duties (e.g., vaping products duty)
Employers who stay aligned with HMRC’s bulletins can better plan payroll operations, mitigate penalties, and ensure their workforce benefits from all entitlements available under updated tax and employment laws.
How Should Employers Handle P11D and P11D(b) Submissions for 2024–2025?
Employers who provided taxable benefits or non-exempt expenses to employees must submit P11D and P11D(b) forms online.
These returns confirm liabilities for Class 1A National Insurance Contributions. Correct submission and payment are essential to avoid late penalties and ensure that tax obligations on employee benefits are properly reported to HMRC.
Key Filing Deadlines and Penalty Warnings
HMRC enforces strict deadlines for P11D and P11D(b) reporting. For the 2024–2025 tax year, forms should have been submitted by 6 July 2025.
Payment of any owed Class 1A NICs should have been made by 22 July 2025 if paid electronically. Delays or errors may lead to penalties or interest charges.
Here’s a summary of the important dates:
| Requirement | Deadline | Notes |
| Submit P11D and P11D(b) Forms | 6 July 2025 | Must be done online |
| Pay Class 1A NICs (electronic) | 22 July 2025 | Penalty applies for late payment |
| Submit Amendment Forms | As soon as errors found | May delay processing significantly |
HMRC has made clear that if you still haven’t filed, you must submit without delay to avoid further penalties.
What to File: P11D, P11D(b), or Both?
Not all businesses are required to file both forms, but many must.
Here’s what applies:
- File P11D for each employee receiving taxable benefits or expenses (unless benefits are payrolled)
- File P11D(b) to report Class 1A NIC liabilities on all benefits, even those taxed through payroll
- If benefits are fully payrolled and properly registered before 6 April 2024, no P11Ds are required
- Submit a nil return if HMRC requested a P11D(b) but no benefits were given
- Submit both P11D and P11D(b) together in one complete online session
Failing to follow these filing requirements could lead to delays or financial penalties. Pay special attention if you’ve changed your approach to payrolling benefits since last year.
Filing Tips to Avoid Common Mistakes
HMRC has provided several key tips to help avoid frequent errors when submitting forms:
- Ensure start and end dates for company cars are accurate
- Do not split submissions over several days, submit all together
- Include approved CO2 emissions for electric and hybrid vehicles
- Only submit one P11D(b) per PAYE scheme
- Use the adjustments section on P11D(b) if applicable
Other practical steps include:
- Double-checking for payrolled benefits and matching them against submissions
- Verifying you’re using the correct submission platform (HMRC Online or approved software)
- Submitting amendments promptly if errors are found post-submission
These steps can save your payroll department time and reduce the likelihood of being fined for incomplete or incorrect filings.
What’s Changed in PAYE Settlement Agreements and Disputed Charge Reporting?
HMRC has introduced important changes to PAYE Settlement Agreements and disputed charge reporting, making online submissions mandatory and tightening compliance requirements for employers.
PAYE Settlement Agreements (PSAs)
- Employers must submit PSA calculations online.
- Payment deadlines: 22 October 2025 (electronic), 19 October 2025 (postal).
- A payslip is issued once the submission is received.
- If no benefits to declare, a nil calculation must still be filed.
- Use your SAFE reference when paying, not your PAYE submission ID.
Disputed Charges on PAYE
From 31 July 2025, HMRC now requires PAYE disputes to be reported using their new online form. Helplines and webchat will no longer accept these cases from 31 August 2025.
Employers must use the correct PAYE reference and ensure they group benefits logically when submitting PSAs. Avoid using incorrect references, such as your PAYE submission ID, which could delay resolution.
These changes aim to streamline employer interactions with HMRC while encouraging accurate and timely tax reporting.
What Does the Finance Bill 2025-26 Mean for Employers?
The draft Finance Bill 2025–26 introduces significant reforms to tackle tax avoidance and strengthen compliance. Key measures include stricter rules on marketed tax avoidance schemes, greater accountability for umbrella companies, and mandatory registration for tax advisers.
Employers should also note changes affecting Employee Car Ownership Schemes (ECOS) and updates under PISCES for employment-related securities. These reforms aim to modernise tax administration, enhance transparency, and create a fairer business environment.
To stay compliant, employers are advised to review payroll processes, off-payroll working arrangements, and employee benefits in preparation for the 2025–26 fiscal year requirements
How Will the Employment Rights Bill Transform the Workplace?
The Employment Rights Bill is a transformative policy designed to ensure fairer working conditions across the UK. Published alongside the HMRC roadmap on 1 July 2025, it outlines several worker-focused protections and reforms.
Key changes include:
- Day-one protection from unfair dismissal
- Strengthened statutory sick pay provisions
- Ban on exploitative zero-hours contracts
- Protection from sexual harassment in the workplace
- Introduction of predictable hours for long-term casual workers
- Phased implementation from 2025 through 2027
Timeline highlights:
- 2025: Industrial action and trade union measures begin
- April 2026: New parents gain day-one access to parental/paternity leave
- 2027: Ban on zero-hours contracts, predictable hours introduced
Employers should track the Implementation Roadmap, with consultations scheduled through late 2025 and early 2026.
What Should Employers Know About the New Vaping Products Duty and Child Benefit Reminder?
HMRC’s August bulletin provides guidance on two critical updates: Vaping Products Duty and Child Benefit claims.
Vaping Products Duty (VPD)
From 1 April 2026, businesses manufacturing, storing, or importing vaping products must register for approval. The duty applies at a flat rate of £2.20 per 10ml of vaping liquid. By 1 October 2026, all products must display an official Vaping Duty Stamp. Record-keeping and compliance documentation will be required.
What you must do:
- Apply for VPD and VDS approval before April 2026
- Begin preparing product labelling and inventory updates
- Understand what qualifies as a taxable vaping product
Child Benefit Reminder
Parents of children aged 16–19 must confirm ongoing education status by 31 August 2025 to continue receiving up to £1,354 per year in Child Benefit. Employers should share this reminder with staff, especially those who may have opted out due to income.
Key reminders:
- Use the HMRC app or website to extend claims
- Consider reapplying if income is now under the new £80,000 threshold
- Use the Child Benefit calculator to estimate potential payments
Supporting staff with these changes ensures they receive their full entitlements.
What Additional Tax Guidance and Fraud Warnings Has HMRC Released?
HMRC is taking a strong stance against tax avoidance and fraud with new guidance and legal wins outlined in this bulletin. Spotlight 69 reveals how landlords using Limited Liability Partnerships (LLPs) to avoid Capital Gains Tax are being challenged. HMRC has warned that these schemes don’t work and participants may pay more in the long run.
Additionally, HMRC won a major tribunal case confirming the fraudulence of mini umbrella company schemes used to exploit tax allowances.
| Area of Focus | Key Concern |
| LLP Liquidation (Spotlight 69) | CGT and Stamp Duty avoidance via LLPs |
| Mini Umbrella Company Fraud | Tax evasion and misuse of VAT/Employment Allowance |
| Bad Tax Advice Campaign | Resources to help contractors avoid schemes |
Employers should review their tax planning practices and contractor relationships. Avoid involvement with disreputable tax schemes and make use of HMRC’s educational resources to stay compliant.
Conclusion
The August 2025 Employer Bulletin is packed with updates employers cannot ignore. From P11D filing obligations and PAYE settlement changes to the Employment Rights Bill, Vaping Duty, and Child Benefit deadlines, it provides the roadmap to staying compliant.
The addition of webinars, calculators, fraud prevention guidance, and contractor support ensures businesses are better equipped to manage payroll and tax changes in 2025–26.
Employers should act promptly, sign up for HMRC alerts, and use the digital resources available to stay ahead of compliance challenges while supporting their workforce effectively.
FAQs About Employer Bulletin HMRC August 2025
Why Does HMRC Publish the Employer Bulletin Every Two Months?
The bulletin offers employers and agents timely updates on PAYE, compliance, and employment law to ensure awareness of new obligations and avoid penalties.
What Are the Penalties for Missing the PSA or P11D Deadlines?
Penalties may include interest charges and late filing fines. Prompt submission and payment using accurate details help prevent these.
Can Employers Still Use Informal Payrolling of Benefits?
No. HMRC no longer accepts informal payrolling. All benefits must be officially registered and reported via the online payrolling service.
Who Will Be Affected by the New Vaping Products Duty?
Manufacturers, importers, and warehouse operators dealing with vaping liquids in the UK must comply with duty stamp requirements starting in 2026.
How Does the New Online Form Improve PAYE Dispute Resolution?
It provides a more efficient, streamlined process, replacing older channels like helplines or webchat, and ensures clear documentation for disputes.
What Is the Risk of Being Involved in a Mini Umbrella Company?
Such arrangements are often fraudulent and could result in HMRC investigations, penalties, or loss of employment rights for workers.
Where Can Employers Get More Help from HMRC?
Employers can access webinars, online tools, and the extra support service for help with payroll, tax compliance, and employment obligations.
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