Guidance

April 2026 issue of the Employer Bulletin

Published 15 April 2026

Introduction

In this month’s edition of the Employer Bulletin there are important updates and information on:

PAYE

Tax updates and changes to guidance

General information and customer support

HMRCs support for customers who need extra help 

HMRCs principles of support for customers who need extra help set out our commitment to support customers according to their needs and underpin the HMRC Charter. 

Find out how to get help and the extra support available.

PAYE

Improvement to the National Insurance refund process for claims for more than one employee 

HMRC are planning to introduce automation to the back-end processing of National Insurance refunds that cannot be corrected through RTI. This change will improve how HMRC handles these cases internally and will help us process approved refunds more efficiently.

Once this functionality is live, HMRC will repay approved refunds by applying a credit to your PAYE online account, replacing the current approach of sending repayments by bank transfer.

There is no change to how you submit a claim.

Employers should continue to follow the guidance to correct an employee’s National Insurance deductions.

HMRC will provide further updates as implementation progresses.

New rates for the National Minimum Wage 

By law, the National Minimum Wage and National Living Wage are the minimum hourly rates you must pay your workers, regardless of how many people you employ.

Rates increase on 1 April each tax year. You must use the new rates from the first pay period starting on or after 1 April 2026. 

Read about the new National Minimum Wage and National Living Wage rates.

Avoid mistakes when applying the rates 

National Minimum Wage and National Living Wage are more than just hourly rates, they are calculations. Without realising it, many employers underpay workers because they make mistakes when working out the rates. For example, making deductions that take workers’ pay below the minimum wage, or not paying for all their working time.

Webinars are available externally at the GoToStage.com website, to help you with:

• getting ready for the National Minimum Wage increase 

• salaried work — excess hours 

• salary sacrifice and the National Minimum Wage

• working time and the National Minimum Wage

• helping employers get things right 

• National Minimum Wage common mistakes, and how to spot them 

Aligning PAYE notifications with the Overseas Workday Relief (OWR) limit

Employers with eligible employees can submit a PAYE notification form, previously called a ‘section 690’, to tell HMRC that they will only apply PAYE to part of a globally mobile employee’s income.

From 6 April 2026, when a PAYE notification form is submitted for an employee who is a qualifying new resident eligible for Overseas Workday Relief (OWR), employers must make sure the percentage entered is the best estimate of non-UK, and therefore non-PAYE earnings and that it does not exceed 30%. This limit will reduce potential underpayments, as 30% reflects the maximum percentage of tax relief that can be claimed under OWR through the employee’s Self-Assessment tax return.

An example is set out in the PAYE manual (PAYE81517).

This change applies to PAYE notifications for the tax year 2026 to 2027 onwards. It does not apply to employees who are subject to transitional provisions. Read about transitional provisions in the Employment Income Manual (EIM43605).

Planned updates to PAYE online for employers 

Credit allocations 

A new credit allocation page is being developed. It is similar to the current payment history page with annual and monthly breakdown pages continuing to show where credits have been allocated to.

However, the new credit allocation page will show where the credit came from, as well as where it has been allocated. It will be live before the end of April 2026. 

End of tax year adjustments 

Only a small proportion of employers need to make end of tax year adjustments. A small number of these will need to make multiple adjustments. The current annual statement page shows only a total for all end of tax year adjustments, plus interest. This figure could include a single adjustment, or multiple adjustments and multiple separate interest charges. To help make things clearer, we will be introducing an additional link that provides a summary of charges, along with a breakdown of each charge included in the summary. This should be live within the next couple of months.

If you have any questions about either your credit allocation or end of tax year adjustment, contact the Employer Helpline.

Text message updates for PAYE Settlement Agreement customers 

From 2 March 2026, HMRC will send text message updates to some customers letting them know about progress with their PAYE Settlement Agreement enquiry.

The messages will confirm actions taken in response to customer contact regarding agreements, amendments, cancellations and calculations. 

You can check if a text message you’ve received from HMRC is genuine.

Small Employers’ Relief compensation rate increased from 8.5% to 9% 

The rate increased to 9% on 6 April 2026. Employers who qualify for Small Employers’ Relief — if they have paid £45,000 or less in Class 1 National Insurance contributions, can reclaim 100% of all statutory payments they pay, plus an additional 9% compensation. This means small employers can now reclaim 109% from HMRC. The only exception is Statutory Sick Pay, which cannot be reclaimed. 

The compensation rate applies to:

• Statutory Maternity Pay

• Statutory Paternity Pay

• Statutory Adoption Pay 

• Statutory Parental Bereavement Pay

• Statutory Neonatal Care Pay

• Shared Parental Pay

All other employers, paying Class 1 National Insurance contributions, can reclaim 92% of what they pay in these statutory payments.

Read about:

• PAYE and payroll for employers

• rates and thresholds for employers 2025 to 2026

• Employment Allowance — what you’ll get and check if you’re eligible

• Employment Allowance — further guidance for employers including details on connected companies, connected charities, single-director companies, employers of care and support workers

• getting financial help with statutory pay — what you can reclaim

Introduction of new miscarriage entitlement and day-one rights for Parental Bereavement Leave and Pay in Northern Ireland 

The Department for the Economy in Northern Ireland has introduced significant changes to Parental Bereavement Leave and Pay. These changes apply to parents who suffer the loss of a child under the age of 18, including stillbirth from 24 weeks of pregnancy, and now extends to miscarriage entitlement, which includes both spontaneous loss and specified medical interventions. 

Effective from 6 April 2026, these changes will apply to Northern Ireland employees only. More information is included in the February Employer Bulletin.

Student and postgraduate loan 

Student loans thresholds and rates

The new student loan plan and postgraduate loan thresholds and rates from 6 April 2026 are:

• Plan 1 — £26,900 

• Plan 2 — £29,385

• Plan 4 — £33,795 

• Plan 5 — £25,000

• postgraduate loan — £21,000

Deduction rates from 6 April 2026 for: 

• Plans 1, 2, 4 and 5 remain at 9% for any earnings above the respective thresholds

• postgraduate loan remains at 6% for any earnings above the threshold

The student loan and postgraduate loan repayment guidance for employers has been updated with the new thresholds.

Student and postgraduate loan start notices

If you receive a student loan and or postgraduate loan start notice (SL1 or PGL1) from HMRC for your employee, it is important that you check and use the correct:

• loan or plan type on the start notice 

• start date shown on the notice 

This makes sure that employees do not pay any more or less than they need to.

If the employee’s earnings are:

• below the respective student loan and postgraduate loan thresholds, you should update the employee’s payroll record to show they have a student loan, postgraduate loan, or both, and file the start notice — you do not need to return this to HMRC

• above the respective student loan and postgraduate loan thresholds, and deductions have not been taken, HMRC will send a notification service prompt as a reminder — if deductions still have not started, we may contact you directly

Deductions should continue until HMRC tells you to stop.

It is important to check that HMRC holds your correct correspondence and email address.

Read about student loan and postgraduate loan repayment guidance for employers including information about receiving the start notice.

Starter checklist student loan updates

The starter checklist for PAYE has been updated to include Plan 5 and to clarify options for customers with multiple loan types.

Key changes include:

• a ‘Plan 5’ checkbox being added to the PDF and online version

• confirmation that employees can only select one plan type ‘1, 2, 4 or 5’ on the online version, however they can still select postgraduate loan at the same time as plan type loans

Additional guidance has been added in the forms to support customers with multiple loans and to help employees identify their repayment loan type.

Reporting expenses and benefits for the tax year ending 5 April 2026

P11D and P11D(b) deadlines 

For those employers who do not yet payroll expenses and benefits, the deadline for reporting P11D(b) Class 1A National Insurance contributions, P11D expenses, and benefits in kind provided in the tax year 2025 to 2026, is 6 July 2026.

All P11Ds and P11D(b) for the tax year 2025 to 2026 must be filed online and at the same time. 

Late submission may result in a penalty. HMRC charge penalties on a monthly basis and issue penalty notices each quarter until a return is received.

P11D(b) 

You need to submit a P11D(b) form if: 

• you have submitted any P11D forms 

• you have paid any employees’ expenses or benefits through your payroll 

• HMRC has asked you to file a P11D(b) form, by sending you a notification to do so 

Your P11D(b) form tells HMRC how much employers’ Class 1A National Insurance contributions you need to pay on all the expenses and benefits you have provided to your employees through your payroll, as well as any you have reported to HMRC on a P11D form. 

Nothing to declare

You only need to make a declaration if HMRC has asked you to submit a P11D(b) and you have nothing to declare.

You only need to tell HMRC that you do not need to make a return if we sent you an electronic notice to file a P11D(b) or a reminder to file a P11D(b) letter. You can tell us by completing a no return of Class 1A National Insurance contributions form. 

Further information on common errors and what to do if you make a mistake can be found in the February Employer Bulletin.

Reminder of key dates and processes for reporting benefits in kind (BiKs)

As part of wider legislative reforms to modernise and simplify how benefits in kind (BiKs) are reported, HMRC is preparing for future mandatory payrolling of most BiKs through payroll software, including voluntary registration.
Employers and stakeholders need to be aware of changes for this tax year 2026 to 2027 from 6 April 2026.

Registration to payroll BiKs now closed

The Payrolling Service for BiKs closed for registration for the 2026 to 2027 tax year on 5 April 2026.

Employers must have registered by 5 April 2026  in order to payroll BiKs for the 2026 to 2027 tax year. No new registrations to payroll BiKs can currently be accepted.

What employers can do if they payroll BiKs

Employers who registered to payroll their benefits can:

• view the benefits they payroll in the online payrolling service
• view the employees they payroll benefits for
• exclude employees from their payrolling.

What employers need to do if not registered to payroll BiKs

For the 2026 to 2027 tax year, any employer not registered to payroll BiKs by the 5 April 2026 deadline, must continue to report employee benefits using:

• P11D for each employee receiving a benefit
• P11D(b) to report Class 1A National Insurance Contributions

These forms must be submitted by 6 July 2027 following the end of the tax year (5 April 2027), in line with the current process.

RTI submission problems — incorrect handling of payroll ID 

Employers continue to create duplicate employments when a payroll ID is changed but the payroll ID change indicator is not used. This typically occurs when the indicator is not ticked or when the old payroll ID is not provided.

When this happens, HMRC systems treat the new payroll ID as a new employment, which leads to:

• incorrect year‑to‑date information
• repeated contact from employers about the same discrepancies
• additional manual work to correct records

Errors also occur when employers submit a start date or a starter declaration instead of using the payroll ID change indicator. This causes HMRC systems to treat the update as a new job, which creates a second employment record for the same employee. To avoid these issues employers should:

• tick the payroll ID change indicator
• provide the old payroll ID
• provide the new payroll ID

HMRC reconciliation failures also occur where Full Payment Submission fields are completed incorrectly. A genuine new employment must include a start date, as missing start dates can cause HMRC systems to merge separate employments. Employers should:

• enter a start date for all new employees
• leave the start date field blank for continuing employments

Incorrect completion of taxable pay fields is another cause of errors, especially when taxable pay in the period is submitted as nil while taxable pay to date is completed. This can result in merged or incorrect employment records. Employers must:

• enter the correct taxable pay for each payment period
• make sure year‑to‑date totals follow logically from the period figure
• avoid submitting nil pay where a payment has been made

Additional problems occur when payroll IDs are reused for different employees, because this attaches submission data to the wrong customer record. This results in:

• split RTI data
• employment details appearing on the wrong record
• disputed charges and avoidable correction work

To prevent these issues employers should: 

• use a unique payroll ID for each employee
• avoid reusing payroll IDs from former employees
• use the payroll ID change indicator where payroll systems generate new payroll IDs automatically

Tax updates and changes to guidance

Investment Zone — special tax site designation in Scotland 

On 26 February 2026, the Investment Zone special tax sites in Scotland were designated. The Glasgow City Region Investment Zone and North East of Scotland special tax sites were designated following a Statutory Instrument which was laid on 5 February 2026.

Investment Zones have been designed as locally led interventions to drive the government’s growth mission by promoting new investment in sectors that are vital to the national Industrial Strategy. These create highly skilled jobs in areas which have underperformed economically in the past.

Some Investment Zones will include designated special tax sites. Special tax sites in England within the North East, West Midlands and Liverpool City Region Investment Zones were designated and came into effect on 8 April 2024 and in the East Midlands on 26 February 2025.

Special tax sites in Wales within the Flintshire and Wrexham Investment Zone were designated and came into effect on 21 November 2025.

Read about designated special tax sites.

Investment Zone proposals for an Enhanced Investment Zone in Northern Ireland will be provided in due course.

Read about Investment Zones and how they could support economic growth.

Businesses urged to prepare for Vaping Products Duty registration from April 2026 

The UK government is introducing the Vaping Products Duty (VPD) and Vaping Duty Stamps (VDS) Scheme from 1 October 2026, with registration now open. VPD and VDS are part of the government’s ‘Plan for Change’ to create a smoke-free generation and tackle youth vaping.

To support impacted businesses in their preparation we have produced a Vaping Products Duty and Vaping Duty Stamps Scheme stakeholder communications pack which is available in English and Welsh.

The pack contains:

• suggested social media posts

• a one and two-page leaflet, in digital and print format, highlighting who the impacted audiences are and important dates

• short article copy for use in newsletters, briefings and external communications

• key messages for affected audiences

• our YouTube video on Vaping Products Duty and Vaping Duty Stamps Scheme

• signposts to detailed information on Vaping Products Duty and Vaping Duty Stamps Scheme

The pack is aimed at trade associations, industry groups, representative bodies and other organisations with links into the vaping sector. You can share these materials on your channels to encourage businesses to understand and prepare for these upcoming changes. This will help businesses understand what they need to do before registration.

Removal of the tax relief for non-reimbursed homeworking expenses

From 6 April 2026, the government removed the process in which employees can claim a deduction from Income Tax from HMRC if they have incurred additional household costs when being required to work from home. These costs include increased household utility costs and business telephone calls. The amount that can be claimed can either be based on actual expenditure, with evidence, or at a fixed rate of £6 per week without providing receipts.

Employees are still able to make a claim for the previous 4 tax years where they are eligible and have not previously made a claim.

This change does not affect the current rules that allow employers to reimburse eligible homeworking costs without deducting Income Tax or National Insurance contributions.

Read about the removal of tax relief on non-reimbursed homeworking expenses.

Expanding workplace benefits relief — tax and National Insurance exemptions for reimbursed eye tests, flu vaccinations and homeworking equipment from 6 April 2026

From 6 April 2026, new Income Tax and National Insurance contributions exemptions apply where employers reimburse employees for certain work-related costs.

Previously, employer provided eye tests and home working equipment were only exempt from tax when provided directly by employers but were taxable when reimbursed. Employers were also unable to reimburse flu vaccination costs directly and must instead use voucher schemes. This created unnecessary complexity and discouraged practical arrangements, particularly for smaller employers and those with hybrid or home-based workers.

To address this, the government announced at Autumn Budget 2025 that from 6 April 2026 employers can reimburse employees for the cost of:

• eye tests required for Display Screen Equipment (DSE) users and, where required, glasses for Visual Display Unit (VDU) use

• seasonal flu vaccinations

• certain items used in employment duties, including equipment employees need to work effectively from home

These changes align the tax treatment of reimbursements with the treatment that already applies in many cases where employers provide these items directly. This simplifies the rules and reflects modern working practices.

What the change means for employers and employees

Where an employee buys a qualifying eye test and, where needed, VDU-specific corrective appliances, a seasonal flu vaccination, or eligible homeworking equipment, and the employer reimburses the cost, no Income Tax or National Insurance contributions charge will arise.

The same tax treatment applies whether the employer arranges and pays the provider directly, issues a voucher, or reimburses the employee.

The exemption applies automatically where the conditions in legislation are met. Employers do not need to submit claims, seek approval or change payroll or reporting processes.

What employers need to do

Any eye tests or flu vaccinations provided or reimbursed before 6 April 2026 should be treated under the previous rules.

For example, where employees arrange their own eye test or flu vaccination before 6 April 2026 and you reimburse them, the amount is generally taxable and liable to Class 1 National Insurance contributions unless another existing exemption already applies.

From 6 April 2026 you can reimburse qualifying costs without operating PAYE or National Insurance contributions, provided the expenditure meets the conditions set out in HMRC guidance in force at the time.

Further information is available in the expanding workplace benefits relief policy paper.

Technical guidance on the new legislation will be published in HMRC’s Employment Income Manual in due course.

For further support contact the Employer helpline.

Construction Industry Scheme — Implementation of reforms in April 2026

Following the government’s announcement at Autumn Budget 2025, from April 2026, contractors will once again be legally obliged to file a Construction Industry Scheme return every month, including nil returns in months where they have not used a subcontractor. Alternatively, contractors must inform HMRC in advance that they will not pay subcontractors that month, by submitting an inactivity request.

The requirement to file nil returns was removed in 2015 with the aim of decreasing burdens on businesses. Instead, contractors were expected to advise HMRC of upcoming periods of inactivity or voluntarily file nil returns. However, many contractors received multiple, escalating late-filing penalties because they failed to inform HMRC that they were not paying subcontractors. The process of appealing these penalties and HMRC cancelling them was burdensome and time-consuming for contractors and for HMRC.

As a solution, HMRC suspended CIS late-filing penalties other than the first fixed penalty of £100. From April 2026, with the nil-filing requirement back in place, we will reinstate the full CIS late-filing penalty regime. This will encourage ongoing compliance. In addition to the first £100 fixed penalty, late filers may subsequently be charged:

• a second fixed penalty of £200 after 2 months

• a tax-geared penalty at 6 months of a minimum of £300 or 5% of any liability which should have been shown on the return

• a further tax-geared penalty at 12 months — the amount of this penalty will depend on why the return was late

Filing a nil return is a quick and simple process. Reinstating the obligation to file a nil return will mean penalties will only be issued where contractors have neither pre-advised HMRC of a period of inactivity or filed a return. HMRC are committed to working with contractors to reduce admininstrative burdens related to these changes as far as possible.

Most of CIS contractors, who already file on time and submit nil returns or notify HMRC of periods of inactivity where required, will be unaffected by these changes.

This nil-filing change forms part of a package of CIS reforms announced at Autumn Budget 2025. These reforms also include anti-fraud measures targeted at businesses who knew or should have known they were engaging with fraudulent businesses.

Employment Related Securities update

Enterprise Management Incentives — changes to the scheme thresholds from April 2026

An increase to Enterprise Management Incentives (EMI) thresholds was announced at Budget and was introduced from 6 April 2026.

EMI schemes are targeted share option schemes designed to support enterprises in recruiting and retaining key employees. Companies can choose:

• which eligible employees receive options
• how many options each selected employee receives
• the exercise price and vesting conditions.

Enterprise Management Incentives threshold change

The government has introduced legislation in the Finance Bill 2025-26 to expand EMI scheme limits from 6 April 2026 to allow more companies to use the scheme.

From 6 April 2026, the EMI limits increased for most companies to:

• the maximum value of company options — from £3 million to £6 million

• the value of gross assets — from £30 million or less to £120 million or less

• the number of employees — from fewer than 250 to fewer than 500

• the maximum holding period — from 10 years to 15 years

Where the employer company is a specified company, the limits increase, and extended exercise period will not apply. A specified company is a company with its registered office in Northern Ireland which trades in goods or the provision of electricity. Further guidance on specified companies is available in the Employee Tax Advantaged Share Scheme User Manual ETASSUM50500.

For the first year, there will be no change to the current EMI reporting requirements.

For options granted on or before 5 April 2026 the original scheme limits will apply.

The extension of the exercise period can be applied retrospectively to existing contracts that have not expired or been exercised. Provided that these contracts are amended in line with the option agreement, or legislation, where required, the tax advantages will be retained. There will be no change to the EMI reporting requirements relating to the maximum holding period.

Employment Related Securities reporting requirements for short term business visitors

Where an employee is a short term business visitor who is covered by an EP Appendix 4 arrangement, HMRC will no longer require companies to report non tax advantage Employment Related Securities data for these employees, provided no UK Income Tax and National Insurance contributions would be due.

This applies for all previous and future tax years. The ERS reporting obligation remains in rare scenarios where UK Income Tax and National Insurance contributions would be due, such as where the short term business visitor was previously a UK resident and share options were granted at that time.

The Employment Related Securities Manual (ERSM140030) has been updated to reflect this. Further information and guidance will be provided in due course.

End of year filing reminder

If you operate an employee share scheme you must file an end of year ERS return.

For tax year 2025 to 2026, you must submit an end of year ERS return, on or before, 6 July 2026. If you miss this deadline, you will receive a late filing penalty.

You must submit a return or nil return for every scheme that you have registered on the ERS online service. You must save a copy of your return.

Read more about how to submit an ERS return, cease a scheme or submit a nil return.

Employment Related Securities administrators

Every year many customers fail to meet the ERS filing deadline because they discover that they cannot log in. This is often because the only person who could log in to file the return is not available or has left the company.

It is advisable to have more than one administrator for your Government Gateway account in case the primary administrator is unavailable. The backup administrator can manage accounts and perform various functions, including:

• adding new users
• managing access levels
• submitting ERS returns

Having a backup administrator ensures that critical functions can still be carried out even if the main administrator is unable to access the system.

To set up a backup administrator, log into your HMRC business tax account. Read about managing team members using HMRC business tax account.

Voluntary National Insurance contributions abroad 

At Budget 2025 the government announced there would be changes to voluntary National Insurance contributions abroad.

As of 6 April 2026, for tax years 2026 to 2027 onwards, the option to pay voluntary Class 2 National Insurance contributions for periods abroad has been removed and new Class 3 National Insurance contributions applications for periods abroad will require 10 years’ continuous UK residency or at least 10 years of National Insurance contributions. If you have workers abroad, inform HMRC of the changes from April 2026.

The changes do not affect the ability of anyone to purchase voluntary National Insurance contributions for tax years prior to 2026 to 2027.

HMRC encourages employers to review the latest guidance on voluntary National Insurance contributions for periods abroad from April 2026 and the Tax Impact and Information Note detailing the changes.

The changes are being made to make sure that individuals building a State Pension from outside of the UK have a sufficient link to the UK and are paying a fairer price to do so.

The official rate of interest from 6 April 2026

The official rate of interest (ORI) will remain at 3.75% from 6 April 2026.

As announced at Autumn Budget 2024, the ORI will now be reviewed quarterly to assess whether it should be increased, decreased or maintained. Any adjustments will take effect on:

• 6 April 2026
• 6 July 2026
• 6 October 2026
• 6 January 2027

The ORI is used to calculate the Income Tax charge on the benefit of employment-related loans and the taxable benefit of some employment-related living accommodation.

Any future changes to the rate will be published online at beneficial loan arrangements — HMRC official rates.

How this will affect employers

If you provide employment-related loans or living accommodation to your employees, you will need to know the correct ORI to apply when you calculate the value of any benefit.

You will also need to remain aware of any future changes in the rate during the tax year. If the rate changes in-year this will impact the taxable value of the benefits you provide.

General information and customer support

Update to claim tax refunds

Some of your employees may have recently received a letter or text message from HMRC informing them that they are due a tax refund. Refunds are no longer issued automatically, so they will need to take action to receive their money.

The quickest and easiest way to claim a tax refund, or to check if one is due, is through the HMRC app.

Here is how they can do it:

1. Open the app and navigate to the ‘Pay As You Earn (PAYE)’ section.

2. If a refund is due, a green ‘Claim’ button will show the amount owed.

3. Tap ‘Claim’, follow the steps and the refund will be paid directly into their bank account within one week.

For those who have not signed up for HMRC’s online services, do not worry. They can still claim their refund online by searching ‘P800 refund’ on GOV.UK. They will need their P800 reference number from their Tax Calculation letter and their National Insurance number.

It is important that employees check their personal details are up to date, including their postal and billing address. If an address is out of date, they may miss important letters or receive an incorrect tax bill.

Share this message with your employees so they can update their details and claim any refunds due.

Tell ABAB survey 2026

The annual ‘Tell ABAB survey’ is now open for completion. The survey takes roughly 15 minutes to complete, and it will be open until 29 April 2026. Results from the survey will be published on GOV.UK by Autumn 2026, in the ‘Tell ABAB Report’.

The survey is commissioned by an independent body, the Administrative Burdens Advisory Board (ABAB), providing crucial insight on the big issues faced by small businesses, including those who identify as tax agents in the tax system.

ABAB are passionate about listening to and understanding the needs of the small business community. Board members come from a range of businesses and professions, and their goal is to support HMRC to make the tax system quicker and simpler for small businesses.

ABAB challenges HMRC on its performance, providing robust scrutiny against key initiatives, such as Making Tax Digital and Improving customer experience. Their annual report, which is sent directly to Treasury ministers, reviews HMRC’s progress against ABAB priorities.

The survey is your opportunity to provide ABAB with insight on the tax system which they can then use to support you.

If you have any questions about the 2026 survey, email advisoryboard.adminburden@hmrc.gov.uk.

Corporation Tax reminder letters (CT208) trial

As part of HMRC’s work to improve digital services for sending and receiving taxpayer information, HMRC is continuing to trial not issuing a CT208 where customers and agents can access the same information through online services.

From March 2026, HMRC began the next phase of a trial not to send CT208 reminders to a small population of unrepresented customers. HMRC will monitor the effect over 6 months and end the trial if there is any negative impact on customers or processes.

There are no changes to the Corporation Tax process itself, and companies will still receive a notice to deliver a Company Tax Return and access their HMRC online accounts.

Agents can access HMRC’s Corporation Tax for Agents online service to view:

• liabilities and payments
• information on the Company Tax returns
• guidance on the Corporation Tax accounting periods

 A simpler way to pay the High Income Child Benefit Charge

If you have employees who receive Child Benefit and earn between £60,000 and £80,000, they may need to pay the High Income Child Benefit Charge (HICBC).

HMRC have launched a new digital service that makes paying this charge easier than ever. Customers can now pay through their salary — no need to register for Self Assessment or submit a tax return.

Those who are eligible to use the new digital service, are:

• new parents who are paying the charge for the first time

• customers who have begun a partnership with someone claiming Child Benefit

• customers who have recently had a pay rise pushing them over the threshold for the first time

Your employees may already be paying the charge through Self Assessment. If this is the only reason for them completing a tax return, they may be able to switch to the new service. They need to simply call HMRC once to deregister from Self Assessment.

Find out more using the HMRC app or online.

Statutory Sick Pay changes — what employers need to know

From 6 April 2026 the Employment Rights Act 2025 introduced changes to Statutory Sick Pay (SSP) that affect most employers.

Removal of the Lower Earnings Limit

All eligible employees are now entitled to SSP regardless of income. SSP is paid at 80% of normal weekly earnings or the weekly flat rate of £123.25, whichever is lower.

Removal of the waiting period

SSP is now paid from the first full day of sickness absence, not from day four.

These changes make SSP more accessible, remove barriers for lower-paid employees, and apply across the United Kingdom, including Northern Ireland. The relevant legislation applies based on when the sickness absence started.

Absences that started on or after 6 April 2026 will use the new rules. Absences that started before 6 April 2026 will follow the previous process to determine eligibility and payment unless otherwise outlined in legislation.

What employers need to do now

HMRC shared technical guidance, including on transitional protections with software developers and payroll providers to help them apply these changes. You may wish to discuss these changes with your payroll provider, particularly if you run your own payroll or have not recently updated your systems.

Guidance on SSP for employers and SSP for employees has been updated. Wider guidance on the Employment Rights Act measures is available on the Business gov website.

For queries about SSP changes, email SSP.Team@DWP.gov.uk.

Prepare for Parental Leave and Pay changes

From 6 April 2026, the Employment Rights Act 2025 introduced changes to parental leave. Eligible employees can also take Bereaved Partner’s Paternity Leave from 6 April 2026.

Employers should make sure that they are aware of the changes and that employees can access their entitlements. As part of the transition to the new rules, some notice periods for Paternity Leave have been temporarily adjusted.

Read about new employment rights, including guidance for business and workers on business.gov.uk.

Paternity Leave

Paternity Leave is now available from ‘Day 1’ of employment. This means an employee can give notice of their intention to take Paternity Leave from the first day of employment.

There is no change to eligibility for Statutory Paternity Pay. Employees must still have worked continuously for their employer for 26 weeks to be eligible for pay.

A shortened notice period will apply for employees with an expected week of childbirth between 5 April 2026 and 25 July 2026. Employees who become eligible for Paternity Leave because of these changes can give 28 days’ notice to take leave.

The usual 15‑week notice period applies for expected week of childbirths from 26 July 2026 onward. Notice rules for adopters and for parents who qualified before 6 April 2026 are unchanged.

Unpaid Parental Leave

Unpaid Parental Leave is also now available from ‘Day 1’ of employment. This means an employee can give notice of their intention to take unpaid Parental Leave from the first day of employment.

The existing 21‑day notice requirement applies.

Shared Parental Leave

Employees who are fathers or partners can now take Paternity Leave and Pay after Shared Parental Leave and Pay, if they choose to do so.

Bereaved Partner’s Paternity Leave

Bereaved Partner’s Paternity Leave allows employed fathers and partners to take up to 52 weeks of unpaid leave if the mother or primary adopter dies before their child turns one.

Bereaved Partner’s Paternity Leave is available from ‘Day 1’ of employment and can be taken by eligible employees whose partner died on or after 6 April 2026.

Next steps

You may wish to:

• review your parental, bereavement and compassionate leave policies, to reflect new entitlements and update your employee handbook

• consider whether you will offer paid leave to your employees in these circumstances — this is not a legal requirement but may provide better support for your staff and improve recruitment, retention and wellbeing

• make sure your HR systems can process leave requests from new starters

• communicate the changes to your workforce

Prepare for protections from unfair dismissal changes

What employers need to know

The government intends for the following measures, enacted by the Employment Rights Act 2025, to come into force from 1 January 2027.

Reduction of the qualifying period for protection against ‘ordinary’ unfair dismissal, from 2 years to 6 months

There are no changes to existing day-one protections against discrimination and automatically unfair grounds for dismissal.

This means that employees who have at least 6 months of continuous employment on 1 January 2027 will be entitled to claim unfair dismissal.

Reduction of the qualifying period for employees’ right to request written reasons for dismissal, from 2 years to 6 months

This aligns with the reduced qualifying period for employee protections against ‘ordinary’ unfair dismissal.

Removal of the qualifying period for protection against unfair dismissal for reason of spent convictions

The Employment Rights Act 2025 removes the qualifying period for those who are dismissed on the basis of a spent conviction in accordance with the Rehabilitation of Offenders Act 1974. This means that employees will be able to make an unfair dismissal claim from day-one if they have been dismissed based on a spent conviction.

Next steps

For dismissals with an effective date of termination before 1 January 2027, the current system of a 2 year qualifying period for ‘ordinary’ unfair dismissal protections will still be in force.

In preparation for these changes to unfair dismissal, your organisation may want to seek independent advice when considering updating your employment policies. If you use a contractual probation period, you should consider how it will operate with a 6 month qualifying period in force.

Read about new employment rights, including guidance for businesses and workers on business.gov.uk.

Make Work Pay consultations — share your views

The Employment Rights Bill became law in December 2025 and is now the Employment Rights Act 2025.

As part of our ongoing commitment to consult on the implementation of the Make Work Pay programme — of which the Employment Rights Act 2025 forms a pivotal part. Department for Business and Trade are currently seeking views on:

• protection from detriments for taking industrial action — consultation closes 23 April
• flexible Working — consultation closes 30 April
• agency Work — consultation closes 1 May
• threshold for triggering collective redundancy obligations — consultation closes on 21 May

The Plan to Make Work Pay committed to full and comprehensive consultation on this implementation. We will work in partnership with businesses, trade unions, public sector employers and civil society to ensure reforms are effective and inclusive. It is in everyone’s interest to get the relationship between employer and employee right. All these consultations will be central to shaping the practical implementation of this legislation and help us Make Work Pay for both.

All current consultations, along with details of closed consultations and published outcomes, is available at Make Work Pay.

Free guidance and support on preparing for upcoming employment rights changes is also available on the business.gov website.

HTML format of Employer Bulletin 

Since September 2020, material published on GOV.UK or other public sector websites must meet accessibility standards. This is so they can be used by as many people as possible, including those with:

• impaired vision 

• motor difficulties 

• cognitive impairments or learning disabilities 

• deafness or impaired hearing 

There is now a contents page, with links, which is fully scrollable. Articles have been put into categories under a heading which is within the introduction to make it easier to find the updates and information you are interested in. 

The HTML format does allow you (dependent upon your web browser): 

• to print off the document should you wish to keep a paper file: 

  • select the ‘Print this page’ button underneath the contents and print to your local printer 

• to save the document as a PDF:

  • select the ‘Print this page’ button and using the drop-down list on the printer select ‘print to PDF’, which allows you to save as PDF and file electronically

  • on a mobile device you can select more options, then select options to be able to save as PDF

Getting more information and sending feedback

Make sure you are kept up to date with changes by signing up to receive our email alerts.

You can also follow us on X (Twitter) @HMRCgovuk. 

Send your feedback about this Employer Bulletin or articles you may wish to read, by email to GRP128613644@hmrc.onmicrosoft.com.