Employer Bulletin HMRC August 2025: Key Payroll Updates

PAYE disputes just got a lot easier to resolve. From 31 July 2025, UK employers can report disagreements with their PAYE bills through a new online form on GOV.UK — no more phone queues or webchat waits. HM Revenue & Customs dropped the August 2025 Employer Bulletin last week, and it covers far more than the dispute resolution overhaul: from updated Child Benefit thresholds to the fate of Making Tax Digital for corporation tax. Here’s what employers and agents need to know before the next tax year kicks in.

Publication Date: 20 August 2025 · Publisher: HM Revenue & Customs · Frequency: Bi-monthly · Key Focus: Payroll topics for employers · New Feature Launch: PAYE dispute online form from 31 July 2025

What are the changes to HMRC in 2026?

The August 2025 bulletin signals several structural shifts hitting in 2026. Mandatory registration of tax advisers who interact with HMRC is scheduled to begin from April 2026, according to the Personal Finance Society’s analysis of the bulletin. The Valuation Office is also planned for integration with HMRC by April 2026 as part of business rates reform.

Draft legislation has been published to tackle PAYE non-compliance in relation to umbrella companies, with HMRC winning a landmark Upper Tier Tribunal case against mini umbrella company fraud — a case reported directly in the August 2025 bulletin. Employers using umbrella arrangements should review contractor classifications now.

PAYE dispute reporting updates

From 31 July 2025, employers can report a PAYE dispute to HMRC using a new online form accessible through the “get help to correct an employer PAYE bill” service on GOV.UK. From 31 August 2025, employers can no longer report PAYE disputes through HMRC helplines or webchat — the digital shift is non-negotiable.

• New online form: Access via GOV.UK employer services
• Available to both employers and agents
• Helpline/webchat fully closed from 31 August 2025

Upcoming tax year adjustments

The income tax self-assessment trading income reporting threshold is increasing from £1,000 to £3,000 gross. New £3,000 gross thresholds are also being introduced for property and “other” taxable income, aligning with the trading income threshold.

What’s changing this April?

April 2026 marks the most significant single-month change cycle in recent HMRC history. The High-Income Child Benefit Charge threshold has increased to between £60,000 and £80,000 — taxpayers liable for this charge will no longer have to register for self assessment, according to JH Greenwood’s analysis of HMRC’s transformation plans.

The bulletin confirms that Making Tax Digital for corporation tax has been abandoned, as confirmed in the HMRC Transformation Roadmap. This is a significant policy reversal employers should note when planning digital readiness investments.

New tax year rules overview

The August 2025 bulletin covers P11D and P11D(b) filings for tax year 2024-25, PAYE Settlement Agreement calculations and payments, employer PAYE disputed charges, Vaping Products Duty preparation, and the Employment Rights Bill implementation. Employers must submit P11D and P11D(b) together in one online submission using either HMRC’s PAYE Online service or commercial payroll software.

Payroll impacts for employers

• PAYE Settlement Agreement electronic payment deadline: 22 October 2025
• PAYE Settlement Agreement postal payment deadline: 19 October 2025
• Class 1A National Insurance submission deadline (2024-25): 6 July 2025
• Class 1A National Insurance payment deadline (2024-25): 22 July 2025

What is HMRC in UK payroll?

HM Revenue & Customs (HMRC) is the UK’s tax authority, collecting National Insurance Contributions and enforcing Pay As You Earn (PAYE) regulations on behalf of employers. HMRC publishes the Employer Bulletin six times per year, providing employers and agents with up-to-date information on payroll topics and issues affecting them.

The UK tax gap currently stands at £46.8 million, according to Personal Finance Society analysis. HMRC plans to modernise how it uses data to encourage compliance, including improving the use of third-party data to pre-populate tax returns.

Introduction to PAYE

PAYE (Pay As You Earn) is HMRC’s system for collecting Income Tax and National Insurance from employees’ wages. Employers operate PAYE as part of their payroll, deducting the correct amounts and remitting them to HMRC monthly or quarterly.

Role in employer bulletins

The Employer Bulletin serves as HMRC’s primary direct communication channel with payroll professionals. Each issue addresses current compliance issues, upcoming deadline changes, and policy updates that affect how employers calculate and pay HMRC.

What is an HMRC submission?

An HMRC submission is any report, return, or payment transmitted to HMRC through approved channels. For employer payroll, this includes FPS (Full Payment Submissions), EPS (Employer Payment Summary), P11D benefits reports, and Class 1A National Insurance declarations.

Employers must submit P11D and P11D(b) together in one online submission using either HMRC’s PAYE Online service or commercial payroll software. The days of separate paper filings are long gone for most payroll transactions.

Online submission processes

• PAYE Online service: Direct submission via GOV.UK
• Commercial payroll software: Approved third-party platforms
• Agent services: For accountants managing multiple clients

PAYE reporting requirements

Employment intermediaries must submit a quarterly report to HMRC for workers placed where PAYE was not operated, with the deadline for the quarter ending 5 July 2025 being 3 August 2025. These reports must include worker names, dates, fees paid, and National Insurance numbers.

Why are HMRC sending letters?

HMRC communicates with employers through official letters for several reasons: deadline reminders, compliance checks, dispute notifications, and changes to registration details. The August 2025 bulletin specifically flags that Parents must extend their Child Benefit claim by 31 August 2025 or their Child Benefit will stop.

The High-Income Child Benefit Charge threshold increase (to £60,000–£80,000) may trigger new letters to higher-earning parents who previously had to register for self assessment. If you’re looking to understand the specifics of register a company UK costs, you can find detailed information on GOV.UK.

Genuine letter checks

Employers receiving HMRC correspondence should verify authenticity by checking for official GOV.UK references, unique taxpayer IDs, and matching deadline dates. HMRC never requests payment via email or text message.

Common reasons for contact

• P11D and P11D(b) filing reminders
• Class 1A National Insurance payment notices
• PAYE dispute resolution outcomes
• Child Benefit claim status updates