The August 2025 edition of HMRC’s Employer Bulletin delivers a packed set of updates on payroll compliance, PAYE processes, benefits reporting, upcoming duties on vaping products, legislative timelines, and seasonal reminders for families receiving Child Benefit. This guide explains the key changes and what actions employers should take, drawing on HMRC’s latest bulletin and corroborating professional summaries released at the same time. Each section below highlights priorities, deadlines, and practical steps to stay compliant and support smooth payroll operations.

HMRC publishes the Employer Bulletin six times a year to provide employers and agents with up-to-date information on topics that may affect them, including policy changes, digital services, deadlines, and compliance reminders. The August 2025 edition specifically flags updates on P11D and P11D(b) for 2024–25, PAYE Settlement Agreements (calculations and payments), a new approach for disputing employer PAYE charges, preparations for Vaping Products Duty and new duty stamps, implementation phases for the Employment Rights Bill, and a reminder for parents of teens to extend Child Benefit claims by 31 August 2025.

What Is the Employer Bulletin and Why August 2025 Matters

HMRC’s Employer Bulletin is a bi-monthly publication for employers and agents, offering operational and compliance updates across PAYE, NICs, benefits reporting, and employer obligations. The August 2025 issue focuses on tangible process changes employers must integrate before autumn deadlines, including P11D wrap-up tasks for 2024–25, PSA settlement cycles, a new online-only process for disputing PAYE charges (with helpline and webchat discontinuation). 

Regulatory prep for Vaping Products Duty and stamps, and implementation timelines for the Employment Rights Bill. Several professional bodies, payroll platforms, and local authority channels echoed the bulletin’s highlights and timing, underlining the practical impact on payroll teams and HR managers.

P11D and P11D(b) for the 2024–25 Tax Year: What to Check and Finalize

HMRC flags P11D and P11D(b) as a core topic in the August 2025 edition. While the filing deadlines for 2024–25 benefits-in-kind were in early July, HMRC’s inclusion is a cue to verify close-out tasks, ensure Class 1A NICs have been correctly calculated and paid, and fix any residual errors before penalties accrue.

Key considerations: Reconcile P11D data with payroll and expense systems to ensure accuracy in benefits reporting for 2024–25. Ensure P11D(b) Class 1A NICs for benefits have been correctly calculated on the total benefits reported and that payments align with HMRC records. If errors are identified, correct them promptly; August is a sensible time to cleanse records ahead of 2025–26 in-year processing and to avoid mismatches that can trigger disputed charges or compliance checks later.

Action steps: Review submissions and payments against internal ledgers to confirm alignment. Document any corrections and retain clear audit trails for HMRC and internal compliance.

PAYE Settlement Agreement (PSA): Calculations and Payments

The bulletin includes PSA reminders these agreements allow employers to settle the tax and NICs due on certain minor, irregular, or impracticable benefits on behalf of employees. August is a critical point for reconciling PSA calculations and preparing payments to meet deadlines.

What employers should do: Confirm which items are covered under the PSA for 2024–25 and ensure calculations reflect the correct grossing-up methodology and NIC treatment. Prepare payment schedules and set internal cut-off dates to ensure funds clear before HMRC deadlines, avoiding late payment penalties. Keep detailed calculation workings and supporting evidence in case HMRC requests clarification or a review.

Employers’ PAYE Disputed Charges New Online-Only Process From Late August

HMRC highlights a significant change in how employers dispute PAYE charges. According to commentary summarizing the bulletin, a new online form is the designated route to dispute a PAYE charge, and from 31 August 2025, disputes can no longer be raised via helplines or webchat. HMRC’s bulletin lists “employers PAY disputed charges” among the August topics, signalling a formal shift to digital for dispute intake.

What changes: Employers will use HMRC’s new online form to dispute charges, replacing helpline/webchat submissions after 31 August 2025. This implies the need for employers to update internal procedures, ensure the right stakeholders have HMRC online access, and prepare documentation in formats suitable for digital upload.

Practical tips: Map internal processes to the online form steps and ensure payroll leads or agents have the correct HMRC credentials. Assemble supporting documents (FPS/EPS submissions, payment confirmations, reconciliations) before starting an online dispute to make the process efficient. Track dispute submissions and outcomes via internal logs to manage caseloads and response timelines.

Preparing for Vaping Products Duty and Vaping Duty Stamps

The August bulletin advises employers and affected businesses to prepare for the Vaping Products Duty and the associated duty stamps scheme. While this will primarily affect manufacturers, importers, wholesalers, and retailers of vaping products, payroll and finance teams within such businesses should be aware of the operational and compliance implications.

What to prepare: Identify whether the business is in scope (manufacturing, importing, or distributing vaping products) and the products that will require duty stamps. Coordinate between tax, finance, operations, and supply chain to build stamp application, tracking, and verification processes. Update internal controls and procurement specifications to ensure compliant sourcing and labelling.

Why it matters: Duty regimes and duty stamps carry detailed record-keeping requirements; early preparation reduces risk of non-compliance, seizure, or disruption once enforcement begins.

Employment Rights Bill — Phased Implementation

The bulletin includes the “implementation of the Employment Rights Bill,” with timelines and phasing noted by professional commentary in response to HMRC’s August issue. According to those summaries, certain measures related to industrial action and trade unions are due in 2025, while a phased approach rolls out further from April 2026, including day-one rights for some parental leave, and longer-term changes such as predictable hours to address exploitative zero-hours arrangements later in the timeline.

What to expect: Policy measures will be introduced in phases from April 2026, with day-one rights for Paternity and Unpaid Parental Leave flagged in commentary aligned to HMRC’s bulletin. Changes addressing “ending exploitative zero-hour contracts” with predictable hours/income have been indicated as coming later (from 2027) via professional summaries referencing the bulletin and department guidance plans. Consultations are expected through summer, autumn, winter 2025 into early 2026 by the Department for Business and Trade, shaping the granular rules and employer obligations.

Employer actions: Track government consultations across 2025–26 to anticipate HR policy updates and contracts/handbooks changes. Begin impact assessments for shift pattern predictability, parental leave eligibility from day one, and industrial relations policies. Plan training for HR/payroll teams on new eligibility rules, leave administration, and record-keeping as measures phase in.

Related Compliance Context: PAYE RTI and Labour Market Trends

While not part of the Employer Bulletin itself, August labour market and PAYE RTI releases provide useful context for payroll planning. ONS reported that early estimates for July 2025 show payrolled employees at 30.3 million, down 0.5% year-on-year, with median monthly pay up 5.7% year-on-year; sectoral changes show growth in health and social work but declines in accommodation and food services. 

Separately, ONS advised continued caution using LFS series due to data collection updates and volatility across mid-2023–2024. Employers planning resourcing, overtime, and budgeting for autumn may find these indicators useful alongside the HMRC updates. ONS PAYE RTI early estimate for July 2025: 30.3 million payrolled, down 164,000 year-on-year; median monthly pay up 5.7%.

Sector changes: largest increase in health and social work (+67,000), largest decrease in accommodation and food services (-108,000). ONS guidance notes volatility in LFS estimates and recommends using them alongside RTI and other indicators.

Additional Highlights Surfaced by Professional Summaries

Professional and industry channels summarizing the August bulletin also referenced related HMRC enforcement and policy themes circulating in parallel with the bulletin’s publication window. Though the bulletin’s GOV.UK page lists the principal topics, employer-facing commentary highlighted the following areas to watch.

New online-only route for Employers’ PAYE disputed charges from 31 August 2025, ending helpline/webchat dispute intake. HMRC enforcement narratives around umbrella companies and supply chain responsibilities, with commentary noting an Upper Tribunal case and future changes from April 2026 impacting recruitment agencies/end clients for ensuring correct tax on workers’ income.

Ongoing tax avoidance warnings (e.g., Spotlight 69 regarding LLP use to avoid CGT) signalled in professional commentary aligned with HMRC communications cycles. Payroll, compliance, and digital service improvements emphasized by payroll industry blogs (noting the August issue as a “compliance checkpoint”), aligning with HMRC’s practice of using Employer Bulletins to shepherd employers through operational changes.

Note: For operational decisions, always rely on the primary HMRC bulletin and associated GOV.UK guidance as the authoritative source, using professional summaries as directional signposts.

FAQs

What’s changed around umbrella companies?

HMRC reports a landmark Upper Tribunal ruling (17 July 2025) confirming the mini umbrella company model in that case was fraudulent, including misuse of the VAT Flat Rate Scheme and Employment Allowance. From April 2026, recruitment agencies will be responsible for ensuring correct tax on workers’ income (or the end client where no agency is involved). HMRC links guidance on spotting and reporting mini umbrella company fraud. 

What does the August Bulletin say about the Employment Rights Bill?

It reiterates the government’s Implementation Roadmap: some measures (industrial action/trade union-related) land in 2025; wider measures phase in from April 2026 (e.g., day-one eligibility for Paternity and Unpaid Parental Leave), while ending exploitative zero-hours contracts is scheduled for 2027. 

What is the Vaping Products Duty and when do employers need to act?

A new Vaping Products Duty at £2.20 per 10ml and a Vaping Duty Stamps scheme will apply. Businesses that manufacture, import or store vaping products must apply for approval from 1 April 2026; duties come into force 1 October 2026. 

Are there HMRC webinars or videos I should watch?

Yes. HMRC is hosting a live webinar on Overseas Workday Relief (16 Sept 2025) covering rule changes, limits, transitional arrangements and record-keeping. The bulletin also links to YouTube videos on what a PSA is, how to apply, and how to submit a PSA calculation online.

Is there anything about student loans or rates for 2025/26?

While the bulletin focuses on processes and policy, payroll bodies have separately flagged 2025/26 student loan thresholds (e.g., Plan 1: £26,065, Plan 2: £28,470, Plan 4: £32,745, Postgraduate: £21,000 at 6%/9% rates). Always confirm against HMRC guidance used in your payroll software.

In Summary

The HMRC Employer Bulletin – August 2025 provides vital updates that every employer, payroll professional, and agent should review to stay compliant. With reminders about P11D/P11D(b) obligations, clear guidance on PSA submissions, and a shift to the new PAYE disputes process, the bulletin underlines HMRC’s move toward more digital, streamlined reporting. It also highlights bigger policy changes on the horizon — from the Employment Rights Bill rollout to vaping duty reforms and tighter controls on umbrella company fraud.

For employers, the takeaway is simple: act now on deadlines, prepare for future legislative changes, and use HMRC’s digital tools and webinars to stay ahead. Whether it’s updating payroll processes, reminding staff about Child Benefit extensions, or monitoring contractors, the bulletin equips businesses with the guidance needed to avoid penalties and maintain compliance.

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