Guidance

October 2025 issue of the Employer Bulletin

Published 15 October 2025

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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

A reminder to employers about National Insurance calculation methods for directors

You should check the National Insurance Contributions due at the end of the tax year using the annual earnings period method to identify any shortfalls. This includes directors whose National Insurance Contributions you have calculated using the alternative method throughout the tax year.

Although this applies to all tax years, there are particular concerns where there are changes in year to the National Insurance Contributions rates, for example, the 2022 to 2023 tax year. You should review your submissions for 2022 to 2023 tax years and onwards to make sure that no further National Insurance Contributions are due. If you identify any underpayments, we recommend that you self-correct through PAYE where possible.

If you are unable to self-correct, we would encourage you to make a disclosure to HMRC. If you have a dedicated Customer Compliance Manager (CCM), let them know of any self-corrections or disclosures. If you do not have a CCM you can make a voluntary disclosure to HMRC. In all cases quote reference ‘DNIC2025’ in any disclosures to HMRC. Rates and thresholds for 2022 to 2023 are available.

Electronic payment deadline falls on a weekend

In November 2025 the electronic payment deadline falls on Saturday, 22 November. To make sure your payment for the month reaches us on time, you need to have funds cleared into HMRC’s account by 21 November 2025, unless you are able to arrange a Faster Payment.

It is your responsibility to make sure your payments are made on time and if your payment is late, you may be charged a penalty.

Check your bank or building society’s single transaction daily value limits and cut-off times well in advance of making your payment. Make sure you know when to initiate your payment, so it reaches HMRC on time.

Further information is available at pay employers’ PAYE.

Making your PAYE Settlement Agreement payment

A PAYE Settlement Agreement (PSA) allows you to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for your employees.

If you have a PSA for 2024 to 2025, any tax and National Insurance must clear into HMRC’s account by 22 October 2025 if paying electronically, and by 19 October 2025 if you pay by post. If your payment is received late, you may have to pay interest and a late payment penalty.

To pay, you will need to use the PSA reference number, for example, XA123456789012 from the payslip we sent to you. 

If you do not have a payslip, you must use the reference number quoted in the covering letter when your PSA was first formalised, this is known as a SAFE reference. You can also get your SAFE reference by phoning the Employers Helpline on 0300 200 3200.

Do not use your submission reference, PAYE Accounts Office reference, for example 123PA12345678, to make your PSA payment. Payments received with these references are allocated to your normal PAYE account and you will continue to receive reminders for the PSA even though you have paid.

Once you have your PSA, you need to tell HMRC what you owe every tax year. You do not need to wait until HMRC has processed your PSA calculation to make a payment.   

For any queries about payments, contact the payment helpline on 0300 200 3401.   

Further information on PAYE Settlement Agreements is available:

Additional support can be found in the following PSA online videos:

No need to phone — online methods of contacting HMRC

More customers are using our digital services, which allows them to self-serve quickly and easily.

Set up your Business Tax Account to view your tax position and manage all your business taxes online. When you log into your account, you can also set your security preferences to help keep your information safe.

PAYE Online

After you have registered as an employer online, HMRC will automatically send you a letter with an activation code, which enables you to enrol for PAYE Online. You need to use the code to activate your account within 28 days of the date on the letter you receive from HMRC.

Alternatively, if you did not activate your online account in time or you registered as an employer by phone or post, you can enrol for PAYE Online.

Your contact details can also be updated through PAYE Online, should anything change.

Check your balance and what you owe HMRC

Using your PAYE Online for employers account, you can:

  • check your balance and find out what you owe HMRC
  • receive important notices for late reporting or payments
  • access tax codes for your employees
  • appeal penalties
  • check your payment history, which should update within 6 working days of your payment — there is no need to call HMRC to check if your payment has been received

Online methods to claim repayments, reallocations, and help to correct errors in your PAYE bill 

If you need to claim a repayment or reallocation of Construction Industry Scheme deductions suffered as a limited company subcontractor you can submit your requests online.

You can also claim a repayment or reallocation for an overpayment on your PAYE bill for the current, or a previous tax year online at claim for a refund if you’ve paid HMRC too much on your PAYE bill.

If you think your employer PAYE bill is wrong and you have been unable to correct it or find the reason for the error by following guidance at fix problems with running payroll, you can ask HMRC for help by submitting your request online at get help to correct an employer PAYE bill.

Timelines for replies from HMRC

You can check when you can expect a reply from HMRC online, without needing to call. This provides the expected response timeline to:

  • register as a Construction Industry Scheme sub-contractor
  • claim a Construction Industry Scheme refund
  • register for PAYE
  • request employers PAYE refund
  • request your PAYE reference number – includes not received or lost reference numbers

We are committed to updating this tool further to include more types of enquiries, so you will be able to easily check online when to expect a reply.

Technical Support

Further guidance on technical support with HMRC online services is available.

Guidance for employers on Real Time Information reporting obligations for payments made early at Christmas

Some employers need to pay their employees earlier than usual in December. This can be for several reasons, such as businesses closing during the festive period and needing to pay workers earlier than normal. This is to remind you of the permanent easement on reporting RTI (Real Time Information) that applies during this time.

If you do pay early over the Christmas period, you must report your normal or contractual payment date on your Full Payment Submission (FPS). For example, if you pay on 19 December but your normal payment date is 31 December, report the payment date as 31 December. In this example the FPS would need to be sent on or before 31 December.

Doing this will help to protect your employees’ eligibility for income-based benefits such as Universal Credit, as an early payment could affect current and future entitlements.

New student loan plan type — Plan 5

HMRC is giving employers advance notice that the Department for Education (DfE) has introduced a new student loan Plan type 5. Repayments are due to begin from 6 April 2026.

Key details include that:

  • Plan 5 will be operated and collected in the same way as current plan types 1, 2 and 4
  • the earliest repayments will start for PAYE is 6 April 2026 
  • the annual repayment threshold will be £25,000
  • repayments will be made at 9% on earnings over the £25,000 threshold
  • employers will start to receive student loan start notices from March 2026 for Plan 5 borrowers due to go into repayment from April 2026
  • Plan 5 is for those who applied to Student Finance England and started courses from August 2023 onwards

Software developers are working on payroll updates due to be in place by 6 April 2026. Guidance and forms will be updated by 6 April 2026.

Employers are reminded that they can:

  • only deduct one plan type at a time, Plan 1, Plan 2, Plan 4 or, from April 2026, Plan 5
  • deduct the postgraduate loan at the same time as one student loan plan type — Plan 1, Plan 2, Plan 4 or Plan 5

General information on student loan and postgraduate loan repayment guidance for employers is available.

Guidance for labour supply chains featuring umbrella companies — PAYE responsibilities

HMRC has published guidance on PAYE rules for labour supply chains that include umbrella companies, in response to stakeholder requests to provide early information on how the rules will work. This guidance will be updated if there are any changes to the legislation.

From 6 April 2026, recruitment agencies, or in their absence end clients, will be accountable for PAYE on payments to workers supplied through umbrella companies.

The guidance provides detailed information on the changes which have been designed to tackle non-compliance in the umbrella company market. Agencies and other parties in labour supply chains can also register for one of HMRC’s in-depth webinars on 21 October 2025 or 17 November 2025, to understand implementation requirements and ensure compliance readiness.

The Employment Status Manual includes the ESM2400 - Umbrella companies legislation: Chapter 11 ITEPA 2003 has also been updated to reflect these changes.

Tax updates and changes to guidance     

Guidelines for Compliance — Help with Freeports

HMRC has recently published new Guidelines for Compliance — Help with Freeports — GfC14.

Freeports, known as Green Freeports in Scotland, are special areas in the UK’s borders where different economic regulations apply. They offer businesses a range of tax reliefs, including savings on National Insurance contributions, Stamp Duty Land Tax, and capital allowances for qualifying investments. They also provide access to simplified and beneficial customs procedures, such as duty deferral and streamlined import and export processes.

These guidelines are primarily for customers who have business premises in a Freeport or are considering doing business within a Freeport. However, they will also be useful to Freeport governing bodies, customs site operators and professional bodies that advise clients on Freeports.

They provide practical support by:

  • explaining the reliefs and benefits available within Freeports
  • highlighting areas where HMRC is identifying errors
  • encouraging compliance by clarifying areas of uncertainty
  • helping customers reduce the risk of incorrectly claiming reliefs or benefits
  • advising on what records and evidence should be retained
  • explaining what to do if a mistake is made

Guidelines for Compliance (GfC) are part of HMRC’s ongoing commitment to publishing practical support for customers. Guidelines are designed to complement existing HMRC guidance by clarifying our position in complex, widely misunderstood, or novel areas of the tax rules.

More information on GfC, including our other publications, can be found on Guidelines for Compliance.

New Advisory Electric Rate for fully electric company cars

Advisory Fuel Rates (AFR) are designed to simplify administration for employers and company car drivers. Updated quarterly, these rates assist employers in reimbursing employees for fuel costs incurred during business travel in company cars. Employees may also use these rates to repay their employer for the cost of any private fuel usage.

Advisory Fuel Rates guidance now includes a new Advisory Electric Rate (AER) for fully electric company cars charged at public charging points — slow or fast chargers under 50 kilowatts.  If the cost per mile of a public charger exceeds the AER, employers or employees may use a higher rate, provided they can show the cost per mile was higher.

For journeys where a company car is charged at both public and residential locations, you may apportion the mileage to reflect the proportion of charging at each location. Any apportionment should be carried out on a just and reasonable basis.

Spotlight 71 — warning for agency workers and contractors who are moved between umbrella companies

Some umbrella companies encourage agency workers and contractors to use tax avoidance schemes. These schemes do not follow UK tax rules. They often move workers between different umbrella companies to hide the tax avoidance from HMRC.

HMRC has issued Spotlight 71 to help those working through umbrella companies to spot the signs of tax avoidance, particularly those that are unknowingly moved between umbrella companies.

Spotlight 71 provides information on what some of the signs of tax avoidance are and where you and should look to identify them. The spotlight also provides examples of what you might be told by those operating tax avoidance schemes when contacting them about potential avoidance.

If you think you or your workers may already be involved in this type of arrangement, HMRC can help you get out. HMRC offers a range of support to help people get back on track or avoid being caught out in the first place. Contact HMRC for help getting out of an avoidance scheme if you have any concerns.

You can report tax fraud and tax avoidance arrangements, schemes, and the person offering them to HMRC by using our online form to report tax fraud.

HMRC has added more information to guidance to help employers determine when National Insurance contributions are due on earnings paid to internationally mobile employees.

Internationally mobile employees may:

  • live in the UK but work overseas
  • come from overseas for periods of work in the UK
  • be UK or overseas residents who move in and out of the UK to work
  • work in several countries and have an employer based overseas

While earnings are generally paid at the time the work is carried out, employees may receive later payments, such as bonuses, after they are earned. For example, after leaving a job in one country and returning home or taking another role in a different country.

The updated guidance confirms that if the employee was liable for National Insurance contributions at the time the work was carried out, they will continue to be liable for National Insurance contributions in respect of those earnings, even if they are paid later.

Firstly, employers should determine whether their employee was liable for National Insurance contributions at the time the work was carried out. You can check how to calculate National insurance for employees working abroad and new employees coming to work from abroad, or refer to examples in the NIM33000 section of the National Insurance Manual (NIM).

If your employee was liable for National Insurance contributions at the time the work was carried out, employers should calculate and deduct National Insurance contributions from the earnings, even if they are paid at a later date when the employee has gone abroad.

If the employee was not liable for National Insurance contributions at the time the work was carried out, there will be no liability to pay National Insurance contributions when the earnings are paid.

You may be able to use your payroll software to work out the amount to be taken into consideration when calculating and deducting National Insurance contributions. If you are unable to use your payroll software:

Read more on how to correct National Insurance contributions on earnings for internationally or globally mobile employees in the following article.

CWG2: further guide to PAYE and National Insurance contributions includes further technical guidance on National Insurance contributions including employees coming to or leaving the UK.

How to correct National Insurance contributions on earnings for internationally or globally mobile employees

Where employers have considered the updated guidance in the previous article to calculate National Insurance contribution payments, they may now find that they have over or underpaid National Insurance contributions.     

How to correct employer returns where National Insurance contributions have been over or underpaid

Where National Insurance contributions for internationally mobile employees have been over or underpaid, employers should make corrections through Real Time Information (RTI) going back 6 years. Employers must make sure that relevant evidence is held to support any amendment, including:

  • a record of the employees, with their National Insurance numbers
  • the total amount and description of the relevant earnings and the amount of National Insurance contributions already paid on it
  • when the relevant earnings were paid and the period over which they were earned
  • the amount of the relevant earnings now considered to be liable to National Insurance contributions
  • the amount of employee and employer Class 1 National Insurance contributions now considered to be correct
  • the amount of National Insurance contributions now due to be paid or refunded
  • an explanation of what caused National Insurance contributions to be over or underpaid

Fix problems with running payroll: you paid your employee the wrong amount or made incorrect deductions provides guidance on how to correct your return through Full Payment Submission and how to make a refund claim when employers have overpaid National Insurance contributions and are unable to amend their RTI returns.    

If you are making a claim, in addition to the evidence required on how to correct employer returns where National Insurance contributions have been over or underpaid, you also need to:

  • use the reference ‘NICs refund for Internationally Mobile Employees’
  • provide the reason you cannot make the amendment through RTI

Further information on how to make a voluntary disclosure to HMRC is available. In your disclosure letter use the reference ‘NICs Disclosure for Internationally Mobile Employees’.

Large businesses with a HMRC Customer Compliance Manager (CCM) should notify them of any RTI corrections, and before making any refund claims. Voluntary disclosures being made by large business customers should be sent to HMRC in line with the existing process.

What to tell your employees who wish to claim a refund where National Insurance contributions have been overpaid

Where employees believe they are due a refund they must contact their employer first. If you, as the employer made an RTI amendment, you should repay any overpaid National Insurance contributions owed to the employee. If you have not submitted an RTI amendment or applied for a refund, your employees will have to provide the following information to HMRC for all pay periods affected:

  • National Insurance number
  • description of the relevant earnings
  • when the relevant earnings were paid and the period over which they were earned
  • reference that this is an internationally mobile employee case where National Insurance contributions were overpaid, for example, at the time the work is carried out they were not liable to National Insurance contributions
  • the Class 1 National Insurance contributions that are being reclaimed
  • the reason their employer is not applying for the refund on their behalf

HMRC’s usual process for claiming National Insurance refunds will apply.  

HMRC is aware the refunds process is currently long and complex and is working on a digital solution to improve it. Further information on how to claim a National Insurance refund is available.

General information and customer support  

Automatic enrolment duties — employing staff for the first time

The Pensions Regulator has refreshed its tailored employer duties timeline. This will help you understand your automatic enrolment duties, what you need to do and when.

Employers’ legal duties begin on the day your first member of staff starts work. This is known as your duties start date. Even if you think you will not need to put staff into a workplace pension scheme, you will still have duties.

Automatic enrolment is an employer’s legal duty and if you do not act in time, you could be fined.

To work out your automatic enrolment legal duties as a new employer, begin by answering a couple of questions on The Pensions Regulator website.

Help your employees prepare for retirement and plan for the future

You can support your employees’ retirement planning and finances with the HMRC app. 

Your employees can use the app to:

  • access their State Pension forecast
  • view their projected pension age
  • make voluntary National Insurance payments if it will increase their State Pension

The HMRC app is free to download and provides your employees with 24/7 access to their pension information. HMRC has also launched guidance to help check if you have to pay tax on your pension. Consider recommending the HMRC app and checker tool to put pension planning power in your employees’ hands.

‘Tax help for hustles’ campaign — new resources for employees

HMRC’s ‘tax help for hustles’ campaign helps those with side hustles get their tax right.     

Since February 2025, the campaign has supported those that earn additional income, outside of their day job, to get their tax right. Whether it is digital content creation, selling clothes online, or tutoring, side hustles are becoming an increasingly important part of Britain’s economy, contributing to job creation and economic growth.  

The help for hustles campaign explains the steps side hustlers need to take to meet their tax obligations when earning additional income, helping them to avoid any tax surprises.   

We are asking employers to use ‘HMRC campaign resources’ in internal messaging to provide information that employees may find useful, especially if they have side hustles.

Update on Winter Fuel Payments recovery through the tax system

From winter 2025, the eligibility criteria for Winter Fuel Payments in England, Wales and Northern Ireland, and the Pension Age Winter Heating Payment in Scotland, will be expanded so that more pensioners are eligible. 

If an individual has a total income of over £35,000, HMRC will recover winter payments through the tax system. A charge to income tax will apply that is equal to the full value of the payment received. The tax charge will apply in all parts of the UK. 

For PAYE customers, HMRC will automatically collect the payment through a change to the customer’s tax code, unless they already file a Self Assessment tax return. Changing the tax code will mean their winter payment will be deducted from their income and paid to HMRC in monthly instalments across the 2026 to 2027 tax year, starting from April 2026. 

For Self Assessment customers, no one needs to include their payment in this year’s tax return. If they complete an online tax return each year, where possible HMRC will automatically include the payment on their 2025 to 2026 tax return, due by 31 January 2027. Customers should check their winter payment is on their online return and include it themselves if not. If they file a paper Self Assessment tax return, they will need to include the payment on their 2025 to 2026 tax return, due by 31 October 2026. No one needs to register for Self Assessment because of the winter payments. 

Further guidance on Winter Fuel Payments, Pension Age Winter Heating Payment and understanding tax and your pension is available.   

HMRC has also provided a calculator to help customers check if their income will be over £35,000

New Cryptoasset Reporting Framework — what employers need to know

From 1 January 2026, the UK will introduce the Cryptoasset Reporting Framework. 

Reporting Cryptoasset Service Providers 

If your business is to exchange cryptoassets on behalf of customers or provide a means for customers to exchange cryptoassets, you will be classified as a Reporting Cryptoasset Service Provider and may need to check if you will need to report cryptoasset data to HMRC. This includes cryptoasset exchanges, brokers, and dealers. 

From January 2026, you will need to collect detailed customer and tax relevant data, including:

  • names
  • addresses
  • tax identification numbers for all users
  • crypto transaction data 

You must register with HMRC’s online service by 31 January 2027 and submit your first report by 31 May 2027. Penalties of up to £300 per user apply for non-compliance, late reporting, or inaccurate data. 

Users of a UK cryptoasset service  

We have also published guidance on information you will need to give to UK cryptoasset service providers if you are a user of a UK cryptoasset service. The information you give means we will be able to link your cryptoasset activity to your tax record. This will make it easier for us to find out what tax you need to pay. 

Getting ready for Cryptoasset Reporting Framework 

The new framework increases data transparency in cryptoassets and will further HMRC’s ability to tackle the tax gap. Further guidance on reporting to HMRC if you provide cryptoasset services in the UK is available, including information on data collection requirements, reporting procedures, and user obligations.

Understanding intermediary services in tax administration — new information for customers

HMRC has published new information for customers about intermediaries in the tax system, acknowledging the vital role employers and other intermediaries play while addressing potentially harmful practices by a minority. 

Understanding tax advisers and recognising potentially harmful practices provides resources on:

  • choosing representation
  • understanding taxpayer responsibilities
  • reporting exploitative behaviour 

It also includes information relevant to employers who manage PAYE on behalf of employees, as well as resources for employees who may use umbrella companies through employment agencies. 

HMRC’s aim is to maintain high standards in tax administration by helping customers understand what good service looks like and encouraging informed choices when selecting representation.

It is not too late for parents of teens to go online to extend their Child Benefit claim

If Child Benefit has stopped for your employees, it is not too late for parents to go online or on the HMRC app to extend their Child Benefit Claim and confirm if their teens are staying in full time education, or training.   

If you have employees with children aged between 16 and 19 years old they can still claim up to £1,354 a year in Child Benefit if eligible.  You can help your employees to get the payments they are entitled to by reminding them to extend their Child Benefit claim online or on the HMRC app. Once their details have been updated any payments due will be backdated.  

The letter they will have received contains a handy QR code which takes them straight to the digital service within Child Benefit when your child turns 16 guidance. In the guidance they can also check eligibility, or they can search ‘extend Child Benefit’ and sign into their online account.   

If your employees or their partners have opted out of getting Child Benefit payments because of their income, they still need to extend their claim. Parents who have an individual adjusted net income of £60,000 or more are liable for the High Income Child Benefit Charge.  

You should encourage your employees to use the online Child Benefit tax calculator to get an estimate of how much benefit they will receive, and what the charge may be. It may now be worthwhile for them to opt back into payments or make a claim if they have not done so before. It is quick and easy to do in the HMRC app or online.

More time for many parents to register for Tax Free Childcare

If you have new starters or employees returning from parental leave who wish to register for Tax Free Childcare, they now have more time to apply.

New changes introduced on 15 September 2025 mean those starting a new job or returning to work following maternity, paternity, shared parental or adoption leave can benefit from weeks of extra eligibility and align with the Free Childcare for Working Parents scheme.

Previously, parents needed to wait until 31 days before they started work, but now there are longer applicable periods, providing more flexible support to parents.

Those returning to work:

  • between 1 October 2025 to 31 January 2026 can apply from 1 September 2025 to 31 December 2025

  • between 1 February 2026 to 30 April 2026 can apply from 1 January 2026 to 31 March 2026

  • between 1 May 2026 to 30 September 2026 can apply from 1 April 2026 to 31 August 2026

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 see, by email to GRP128613644@hmrc.onmicrosoft.com.     

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