Guidance

October 2026 issue of the employer bulletin

Published 21 October 2026

PAYE

Tax updates and changes to guidance

General information and customer support

HMRCs support for customers who need extra help 

HMRC’s 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

Payrolling benefits in kind — update on globally mobile employee exceptions and Class 1A National Insurance contributions

In the August 2026 employer bulletin, HMRC informed you of actions you can take to prepare for the mandatory payrolling of benefits in kind and expenses to be introduced in phases from 6 April 2027.

Phase 1 will apply to company cars, car fuel, vans, van fuel and employer-provided medical benefits.

Employers should now start getting ready for real-time reporting of Income Tax and Class 1A National Insurance contributions for these benefits in kind (BiKs) and taxable expenses using payroll from April 2027.

We are now advising you of 2 updates announced by the government that might affect you and your employees.

Exception cases — Globally mobile employees

Employers will have the option to voluntarily except globally mobile employees from mandatory payrolling from 6 April 2027.

The globally mobile employees exception is intended for employees whose globally mobile working arrangements create genuine practical difficulties in calculating or reporting BiKs through payroll in real time.

You will need to tell us which eligible globally mobile employees should be excluded from mandatory payrolling by submitting an online form G-Form to HMRC, which will be available from November 2026.

Once you have submitted the G-form, the following arrangements will apply for reporting BiKs for excepted globally mobile employees. You should:

• leave globally mobile employees BiKs out of mandatory payrolling from 6 April 2027
• continue using the existing year-end reporting process through forms P11D and P11D(b) for these employees

The updated mandatory payrolling of benefits in kind expenses guidance includes information on:

• the globally mobile employees exception process

• G-Form applications

• the definition of globally mobile employees who are eligible for the exception

This guidance will be further updated in autumn 2026.

What you should do now

Although these changes do not take effect until April 2027, you will have to start preparing now.

You should:

• review the benefits in kind you provide to employees
• consider any changes to your payroll, HR and finance processes
• speak to your payroll software provider, payroll provider or agent if they help you manage payroll
• identify any employees within your workforce who may be eligible for an exception process
• consider how you will communicate these changes to your employees
• check GOV.UK regularly for further updates and guidance

Class 1A National Insurance contributions if you voluntarily payroll other benefits in kind

From 6 April 2027, where benefits in kind are voluntarily payrolled, any associated Class 1A National Insurance contributions must also be reported and paid through payroll in real time. You cannot choose to payroll the Income Tax and report the associated Class 1A National Insurance contributions separately at the end of the tax year.

You can register to voluntarily payroll non-mandated benefits for the 2027 to 2028 tax year from November 2026. 

If you are already registered to voluntarily payroll non-mandated benefits, your registration will automatically continue for the 2027 to 2028 tax year.

If you do not want to continue voluntarily payrolling non-mandated benefits, you will need to withdraw your registration by 5 April 2027 and continue to use P11D and P11D(b) forms to report your income tax and Class 1A National Insurance contributions.

Further information about voluntary registration will be included in the updated mandatory payrolling of benefits in kind and expenses guidance in autumn 2026.

Basic PAYE Tools (BPT) — Apple support changes

HMRC is aware that Apple plans to end support for Intel-based applications on Apple Silicon Macs from autumn 2027. Basic PAYE Tools (BPT) will continue to operate as normal throughout the 2026 to 2027 tax year.

HMRC is assessing the impact of this change for future releases.

The Basic PAYE Tools services availability and issues page has been updated with this message and we recommend that employers visit this page in the event of any problems experienced with BPT.

Guidance for employers on Real Time Information (RTI) 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 Real Time Information (RTI) 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. 

Electronic payment deadline falls on a weekend

In November the electronic payment deadline falls on Sunday 22 November 2026. To make sure your payment for this month reaches us on time, you need to have funds cleared into HMRC’s account by 20 November 2026, unless you are able to arrange a faster payment.

It is your responsibility to make sure your payments are 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 on pay employers’ PAYE is available.

Make your PAYE Settlement Agreement (PSA) payment by 22 October 2026

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.

Any electronic payments for a PSA for the tax year ended 5 April 2026 must clear into HMRC’s account by 22 October 2026. 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 this, contact the employer helpline for advice.

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

P11D and P11D(b) for tax year 2025 to 2026

P11D and P11D(b) filing and payment deadlines

The deadline for informing us online about any Class 1A National Insurance contributions that you owe for the tax year ending 5 April 2026 was on 6 July 2026. If you have still not done this, you need to submit without delay to avoid any further penalties which may be issued.

Any Class 1A National Insurance you owe must have been paid by 22 July 2026.

There are a number of live webinars available covering submitting your P11D and P11D(b).

Further guidance on how to complete a P11D and P11D(b) is available.

How to submit P11D and P11D(b) online

You can use the following online methods:

• commercial payroll software

• HMRC’s PAYE Online service

You must submit all your P11D and P11D(b) together in one online submission.

What to file

If you paid any benefits or non-exempt expenses (or both), or if you payrolled any benefits, you need to file a P11D(b). Include the total benefits liable to Class 1A National Insurance contributions, even if you taxed some or all of them through your employees’ pay.

The P11D(b) is used to report any employer’s Class 1A National Insurance contribution liability.

You need to submit a P11D for each employee in receipt of benefits and or non-exempt expenses unless you registered with us online before 6 April 2025 to tax them through your payroll. If you did not register online but then went on to tax some or all benefits through your payroll, you still must submit a P11D online for all benefits that were not payrolled. 

Nothing to declare

You only need to tell us 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 declare a no return of Class 1A National Insurance contributions

Common mistakes when completing a P11D or P11D(b) 

Some common mistakes to watch out for include:

• entering 6 April 2025 as the start date or 5 April 2026 as the end date for company cars, unless these are the actual dates the employee received or returned the car

• submitting your P11D and P11D(b) forms over several days — they must be submitted together, so only submit them once all P11Ds and the P11D(b) have been completed

• not including the approved CO₂ emissions figure when reporting a fully electric car

• not including the approved zero-emissions mileage when reporting a hybrid car with approved CO₂ emissions between 1 and 50g/km

• submitting more than one P11D(b) for a scheme — only submit one P11D(b) showing the total amount due for all employees and directors, any additional P11D(b) will be treated as an amendment

Check P11D(b) to see if you need to use the ‘adjustments’ section.

Company car tax calculator

The new version of the company car tax calculator is available. For any car changes that an employee has within the Tax Year, a P46 Car form must be submitted.

Tax updates and changes to guidance

Welfare counselling guidance update

HMRC has updated its guidance on the tax treatment of employer-provided welfare counselling to make it easier for employers to understand how the existing exemption applies.

The welfare counselling exemption allows employers to provide certain counselling services to employees without a tax charge arising. The updated guidance does not change the legislation or extend the scope of the exemption. It includes additional examples and clearer links to related guidance to help employers apply the current rules correctly.

As part of the update, new examples have been added to illustrate support that may fall within the welfare counselling exemption, including:

• mental health support

• menopause support

These examples are intended to reflect the types of wellbeing support commonly provided in modern workplaces and help employers understand how the existing exemption may apply in practice.

The revised guidance also provides clearer links to other employment income exemptions that may be relevant when employers provide health and wellbeing support, including:

• recommended medical treatment provided to support an employee’s return to work

• health screening and medical check-ups

• employee assistance programmes

Employers who provide welfare counselling, health and wellbeing support, or employee assistance programmes may wish to review the updated guidance at EIM21845 — Particular benefits: exemption for welfare counselling to make sure they are applying the correct tax treatment.

Help your employees plan and prepare for retirement with the HMRC app

With last month’s Pension Awareness Week focusing on retirement planning, it is a great time to help your employees take simple steps now to prepare for their future.

It is never too soon to plan ahead, and with the HMRC app, your employees can manage their finances securely at any time.

In the app, they can:

• view their State Pension forecast
• check for gaps in their National Insurance record, and make voluntary contributions if needed
• see their scheduled retirement date

The HMRC app can be downloaded free from the App Store and Google Play Store giving users the ability to find all their State Pension and retirement needs in one place.

They can also find guidance on paying tax on a State Pension on Tax Confident

For those looking to build their knowledge further, Tax Confident offers clear and straightforward guidance on tax and pensions. Tax Confident supports them in developing a deeper understanding of tax and pension matters, helping them feel more informed and confident when planning for retirement.

Share this message with your employees to help them feel fully prepared for the future.

Mandatory tax adviser registration for payroll agents opens 18 November 2026

If you provide payroll or PAYE services and communicate with HMRC on behalf of clients as part of your business, you may need to register under HMRC’s mandatory tax adviser registration requirements.

The registration window for payroll agents opens on 18 November 2026. You do not need to register yet, but now is a good time to check whether the requirement applies to you and understand what action you will need to take when your window opens.

Use our checker tool to find out if and when you need to register.

We have also added a range of communications resources to help you understand the changes and share information with colleagues and clients.

General information and customer support

Changes to trade union law — what employers need to know

As part of the ongoing implementation of the Employment Rights Act 2025, a number of reforms related to trade union law are being introduced over the coming months. This article explains the key changes affecting employers, including measures that will come into force on 30 October 2026.

The new employer duty to inform workers of their right to join a trade union will now come into force on 1 January 2027, rather than October 2026 as originally anticipated. Details of this new requirement are set out towards the end of this bulletin.

Further information about the trade union reforms and other changes to employment law is available on the business.gov website. 

The Acas website provides guidance on:

• strikes and industrial action
• collective dispute resolution
• Acas and CIPD training on working effectively with trade union

Trade Union Right of Access

The Employment Rights Act 2025 introduced a new legal right for independent trade unions to access workplaces and engage with workers, either in person or digitally.

From 30 October 2026, employers and unions will be able to negotiate access agreements under a statutory framework set out in the Employment Rights Act 2025. Where agreement cannot be reached, the Central Arbitration Committee (CAC) can reach a determination.

The key changes that take effect on 30 October 2026 include:

• independent trade unions will be able to formally submit a request to employers to access their workplace(s)
• access will be physical, digital, or a combination of both
• if agreement cannot be reached, either party will be able to apply to the CAC
• employers who employ fewer than 21 workers across all of their workplaces will be exempt from these provisions
• the CAC will be responsible for overseeing and enforcing statutory access agreements and can issue fines for breaches of an agreement

Code of practice

A statutory code of practice will be available on GOV.UK, which provides guidance and further information on how access should operate in practice.

A revised code of practice on access and unfair practices during the recognition and derecognition process was laid before parliament on 6 July 2026. Subject to parliamentary approval, it will come into force from 30 October 2026.

Trade union recognition changes

If an employer does not voluntarily recognise a trade union for collective bargaining purposes, the process by which trade unions negotiate with employers on behalf of their members, the union can apply to the Central Arbitration Committee (CAC) for statutory union recognition.

In April 2026, the Employment Rights Act 2025 amended the statutory recognition process by:

• deleting the requirement for unions to have the support of at least 40% of the workforce in the proposed bargaining unit in a trade union recognition ballot — unions only need a simple majority of those voting to win
• deleting the requirement for a union to demonstrate on application to the CAC that they are likely to win a recognition ballot — unions only need to show the CAC that they have 10% membership of the proposed bargaining unit for their application for recognition to be accepted by the CAC

From 30 October 2026, the Act will further amend the statutory recognition process by:

• extending the legislation and Code of Practice on access and unfair practices during the recognition and derecognition process to apply from the point where the CAC accepts an application from a union
• setting a clear timetable for negotiations on access between the employer and union, 20 working days from the point the CAC accepts a trade union recognition application — if no agreement is reached, the CAC will have 10 working days to determine a reasonable access agreement
• allowing 5 working days after the close of the recognition ballot for complaints to be submitted to the CAC where an unfair practice is alleged
• making it easier to determine such complaints by only requiring the CAC to consider whether an unfair practice has occurred without considering the effect it may have had
• preventing employers from diluting union membership through mass recruitment by freezing the bargaining unit once a CAC recognition application is submitted, ensuring new recruits are excluded from the recognition process and any recognition ballot

Code of practice and guidance

A revised code of practice has been produced to reflect the above legislative changes in the Employment Rights Act in relation to access and unfair practices during the recognition and derecognition process. In addition, the code:

• increases the suggested union access meeting frequency to once every 5 working days during the recognition and derecognition process
• increases the suggested minimum length of union access meetings to 45 minutes during the recognition and derecognition process
• provides more detailed guidance on trade union digital access and digital communications

The revised code of practice on access and unfair practices during the trade union recognition and derecognition process has been published in draft form. Subject to parliamentary approval, it will come into force on 30 October 2026.

Updated guidance on the statutory union recognition process will be published on GOV.UK. The CAC will also publish its revised guides to the parties.

New rights and protections for trade union representatives

From 30 October 2026, employees who are trade union workplace representatives will have stronger rights to paid time off and facilities to fulfil their duties. Subject to parliamentary approval, an updated Code of Practice on time off for trade union duties and activities will come into effect.

The revised draft Acas Code of practice available on the Acas website on time off for trade union duties and activities was laid in Parliament on 6 July. Subject to parliamentary approval this Code is expected to be published and come into effect from 30 October 2026.

Industrial action detriments

From 30 October 2026, subject to parliamentary approval, employers will be prohibited from treating workers unfairly, also known as imposing detriments, if the main purpose is to penalise, prevent or deter the worker from taking protected industrial action.

This change helps protect workers while still allowing employers to take measures to respond to industrial action where those measures are not solely to penalise, prevent or deter workers.

Employers can still proportionately withhold pay for time a worker spends taking industrial action.

New employer duty to inform workers of their right to join a trade union

Employers will be required to give workers a written statement provided by the government informing them of their right to join a trade union. Employers must only amend the statement to add specific workplace information where required or permitted.

From 1 January 2027, the statement must be provided to new workers directly at the start of their employment at the same time as the written statement of employment particulars.

By 5 April 2027, employers will be required to provide the statement to existing workers using direct or indirect methods.

Guidance and statement

You can find an overview of the duty requirements at Trade union reform on the business.gov website.

Detailed guidance is expected to be published in November 2026.

Harassment protections — new Acas and Equality and Human Rights Commission (EHRC) guidance

In October 2024, the Worker Protection Act 2023 came into force, requiring employers to anticipate the risk of sexual harassment occurring and take reasonable steps to prevent it.

The Employment Rights Act 2025 contains measures to strengthen this and other harassment protections.

Key legislative changes

The following changes will come into force from 30 October 2026:

• employers will be expected to take ‘all reasonable steps’ to prevent sexual harassment of their employees
• there will be an obligation on employers not to permit the harassment of their employees by third parties

What employers need to do

Employers should review the updated guidance published by the Equality and Human Rights Commission (EHRC) and Acas to support employers to prepare for the new measures. These are available on the Workplace sexual harassment and third-party harassment page on the Business gov website, alongside wider guidance and information on the new measures.

Employers should make sure their current harassment policies align with the new measures coming into force. This should include their risk management procedures, reporting routes and harassment training provided to their employees.

The Tell ABAB Report 2026

The Tell ABAB Report 2026 is now available to read. The report presents findings from the annual Tell ABAB Survey, commissioned by the independent Administrative Burdens Advisory Board (ABAB). This year’s survey received the highest number of responses since it began, providing the largest dataset to date. The findings offer insights into the experiences, challenges and priorities of small businesses and tax agents when interacting with the UK tax system.

ABAB works to understand the needs of small businesses and provide independent advice to HMRC. Its members come from a range of business and professional backgrounds and work with HMRC to identify opportunities to make the tax system simpler and easier to use for small businesses.

As an independent advisory body, ABAB provides challenge and scrutiny of HMRC’s services and transformation programmes, including Making Tax Digital and wider improvements to the customer experience. Each year, ABAB publishes a report to Treasury ministers setting out its assessment of HMRC’s progress against the Board’s priorities and recommendations.

We would like to thank everyone who contributed to this year’s survey. This includes stakeholders and colleagues who helped promote the survey, and the thousands of small businesses and tax agents who took the time to share their views.

The feedback received will help ABAB understand the issues that matter most to customers and support ongoing work to reduce administrative burdens across the tax system. Insights from this year’s record level of participation will also help inform future discussions and recommendations.

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

New YouTube video — what is the foreign income and gains (FIG) regime

This information is relevant to employers who hire people from overseas.

From 6 April 2025, the tax rules for non-UK domiciled individuals changed. The remittance basis of taxation was replaced by the foreign income and gains (FIG) regime.

There is an overview of the FIG regime in HMRC’s new YouTube video. It covers: 

• what has changed 

• who is eligible

• the types of income and gains you can get relief on

• how to claim

• how a claim could affect your tax 

Further information is available on foreign income and gains (FIG) regime Self Assessment help sheet HS266 and in HMRC’s Residence and FIG Regime Manual.

Statutory Neonatal Care Pay (SNCP) and Neonatal Care Leave

Statutory Neonatal Care Pay (SNCP) and Neonatal Care Leave apply to eligible employees whose baby is born on or after 6 April 2025 and requires specialist neonatal care. Both entitlements are available to employees in England, Scotland and Wales. 

Employees may be entitled to one week’s SNCP and Neonatal Care Leave for every 7 consecutive full days their baby spends in specialist neonatal care, up to a maximum of 12 weeks, provided the baby has entered specialist neonatal care within 28 days of birth.

Both SNCP and Neonatal Care Leave are in addition to other statutory family leave and pay entitlements, such as maternity, paternity, adoption and shared parental leave. 

Statutory Neonatal Care Pay is paid at the statutory rate, or 90% of average weekly earnings, whichever is lower. 

Employees must take Neonatal Care Leave after any Statutory Maternity Leave or Statutory Adoption Leave.

Further information is available at Statutory Neonatal Care Pay and Leave — employer guide.

Construction Industry Scheme (CIS) — how to get your monthly returns right

We want to help you get your Construction Industry Scheme (CIS) monthly returns right first time. The most common mistakes we see are using the wrong deduction rate, missing out material costs, and entering figures incorrectly.

Using the wrong CIS deduction rate

You must verify a subcontractor with HMRC before you pay them for the first time. You must also verify them again if you have not included them on a CIS return in the current tax year or the previous two tax years. HMRC will tell you which deduction rate to use, 30%, 20% or 0%, if the subcontractor has gross payment status.

A subcontractor’s deduction rate can change. HMRC will write to you if this happens. Do not rely on an old rate or a rate used on a previous return. Check that the rate you use matches the latest rate HMRC has provided.

Not recording the cost of materials

Another common mistake is leaving material costs out of the CIS monthly return. This can make the deduction look wrong, even if you used the correct deduction rate.

CIS deductions usually apply to the labour part of a subcontractor’s invoice, not the cost of materials. You should record the material cost separately on your return so the payment, materials and deduction figures match your records.

Entering incorrect figures

Small data entry mistakes can cause problems. For example, entering the wrong payment amount, material cost or deduction amount can make the return inaccurate. Check each figure against your payroll, invoice or accounting records before you submit the return.

What you should do

Before you submit each monthly return you should:

• verify subcontractors when required
• use the latest deduction rate provided by HMRC
• record the cost of materials separately where materials are included on the invoice
• check payment, material and deduction figures against your records
• correct any errors as soon as possible if you discover a mistake

Read the guidance in Construction Industry Scheme 340 which explains contractors’ responsibilities and how to amend a return.

HMRC checks CIS returns and may get in touch if something does not appear to match a subcontractor’s verified deduction rate, or if other figures need checking. HMRC may ask you to review your records so we can understand how the return was completed. If more information is needed, HMRC will explain what you need to do next.

HMRC may contact customers by letter or email. If you are unsure whether a message is genuine, you can check a list of genuine HMRC contacts.

There is still time to help your parent or carer employees receive the Child Benefit payments they are entitled to

Anyone who wants to continue receiving Child Benefit should act before 30 November 2026 to get their full entitlement.

For customers who missed the 31 August 2026 deadline, Child Benefit payments will have stopped automatically. However, claims can be restarted, with backdating available for up to three months.

Parents and carers can update their claim in minutes through the HMRC app or online and do not need to call HMRC.

Parents and carers whose children remain in full-time education can continue to receive Child Benefit. This includes those who:

• will study at home due to illness or disability

• start approved training

If the child is starting the second year of a full-time non-advanced education course, they do not need to contact us.

Any parent or carer who extends their Child Benefit, and they or their partner has an income of more than £60,000, will be liable to pay the High-Income Child Benefit Charge, which can now be paid through their PAYE tax code.

Share this message with your employees to encourage them to extend their Child Benefit online.

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.