Employer Bulletin – August 2025: Policy, Payroll, and People Updates

August 2025 brings important updates for employers across the UK. HMRC has released its latest Employer Bulletin, a regular guide that highlights changes in rules, payroll practices, and compliance requirements. For many of us managing teams, pay, and workplace policies, this bulletin is more than just an update; it is a roadmap to staying compliant and avoiding costly mistakes.

We know how quickly tax rules and payroll systems can change. Missing even a small detail can lead to penalties or employee dissatisfaction. That is why the August bulletin matters. It explains new policies, adjustments in payroll reporting, and employer responsibilities in simple terms.

We will walk through the key highlights. We cover the policy reforms shaping workplace laws and the payroll changes that affect day-to-day operations. By the end, you’ll have a clear view of what’s new, why it matters, and how employers like us can adapt smoothly in the months ahead.

Policy Updates

Finance Bill 2025-26 & Tax Reforms

The government published, on 21 July 2025, draft legislation for the Finance Bill 2025 26 omnibus changes to update tax rules and reduce the tax gap. It tackles promoters of marketed tax avoidance. It also plans to regulate tax advisers and crack down on non-compliance by umbrella companies. Employers are advised to note these changes. They may affect advisers, payroll structures, and benefit packages.

Employer Bulletin: PAYE & P11D

The August Employer Bulletin spotlights key PAYE updates:

• Filing deadlines for P11D and P11D(b). Employers preparing a Class 1A National Insurance report have to file it by 6 July 2025 and should complete the payment by 22 July 2025.
• Employers are required to submit both P11D and P11D(b) forms online simultaneously via HMRC’s PAYE Online or approved payroll software.
• Useful tips include accurate CO₂ figures for company cars, submitting all forms in one go, and using the new company car tax calculator.

PAYE Settlement Agreements (PSA)

If we’re filing PAYE Settlement Agreements, this month’s bulletin encourages doing so online. We are still required to submit a nil return, even when there is nothing to report. Required details include employer PAYE reference, tax year, benefits type, and employee count.

PAYE Disputed Charges

From 31 July 2025, employers must use a brand-new online form to submit disputes over PAYE charges. From 31 August 2025, help through the helpline or webchat will no longer be provided. This is a big change to how we resolve issues.

Wider Policy Highlights

Other important matters in the bulletin include:

• The Employment Rights Bill is set to bring changes to workplace law.
• Vaping Products Duty: Businesses should prepare for the upcoming duty and stamp schemes.
• The parents of teenagers will need to renew their Child Benefit by 31 August 2025.

These updates remind us that policy is always evolving, and we need to stay informed.

Payroll Changes

Employer National Insurance & Employment Allowance

In April 2025, employers’ National Insurance contributions increased from 13.8% to 15%. The threshold dropped from £9,100 to just £5,000. This makes payroll more expensive for many employers.

On the positive side, the Employment Allowance has been raised to 10,500. Now, more businesses can offset these higher NI costs, although charities and small firms need to check their eligibility.

Retail employers are especially under pressure. The BRC warns that these NI hikes, along with a 6.7% rise in minimum wage, could cost retailers £5 billion in 2025. As many as 160,000 part-time positions could be affected.

Salary Sacrifice & Pension Planning

One way to manage payroll costs is through salary sacrifice for pension contributions. It can reduce employers’ NI bills and offer tax benefits. Bigger firms use it, and smaller ones now see it as a smart option. But we must ensure pay doesn’t fall below minimum wage or affect statutory maternity pay.

Real-Time Information (RTI)

HMRC urges employers to keep RTI accurate and on time. Errors like wrong NI numbers or new employees not being added can lead to penalties. The bulletin reminds us: payroll accuracy matters.

Statutory Payments & Student Loans

While not detailed on HMRC’s site, some sources note the bulletin includes reminders about updated statutory pay rates, like maternity, paternity, and sick pay. It also covers correct student loan deductions. Employers should double-check that their payroll software reflects the latest amounts.

Conclusion

In this Employer Bulletin, we see that August 2025 delivers more than info. It offers a clear roadmap. We learn about P11D deadlines, PAYE disputes, tax adviser rules, and rising NI costs. We also remember child benefit news and vaping duties. These changes affect payroll and operations.

We, as employers, must update our systems, train our teams, and watch deadlines closely. Modern payroll is dynamic. It’s not a set-and-forget job. By using the Bulletin, we stay compliant. We protect our employees and our business. Let’s prepare for Q4 2025 and beyond, ready to meet new rules and stay on track.