This bulletin follows the release of the June Agent Update (Issue 132). In this issue we cover the content most relevant to employment taxes and reward activities.

Deadlines for forms P11D and employment-related securities (ERS) returns

• The deadline for filing annual ERS returns and forms P11D is approaching. Employers or their agents must make the submissions by 6 July 2025. 
• Failure to submit ERS returns and/or P11Ds on time may result in penalties being imposed by HMRC. 

Payment of Class 1A National Insurance contributions (NICs)

• Payments of Class 1A NICs declared on the form P11D(b) must clear into HMRC’s account by 22 July 2025. 
• As a reminder, employers should send only one P11D(b) showing the total amount due. If a separate one is sent for employees and directors, HMRC may treat each separate P11D(b) as an amendment to any they have previously received. 
• Employers should ensure that their payments are correctly allocated by providing the correct payment reference, which is the 13-character accounts office reference followed by 2513. The reference should have no gaps between the characters. 
• See further information on how to pay your Class 1A National Insurance contributions.

Written off or released directors’ loans

• HMRC is writing to individuals who:
  • between April 2019 and April 2023 received a director’s loan that has been written off or released; and
  • may not have declared the amount as income on their self-assessment tax return.
• The loan amount is liable to income tax and so HMRC encourages individuals to make a disclosure using the digital disclosure service (DDS).
• Agents who have clients with loans that were written off or released before April 2019 can also use DDS to make a disclosure on their behalf. 
• For loans since 6 April 2023, tax returns will be within the amendments window which means that the individuals, or their agents, can make changes to their return by following the instructions online.  

PAYE Settlement Agreement (PSA) calculations

• PSA allows employers to make one annual payment to cover all income tax and NICs due on small or irregular taxable expenses or benefits provided to employees.
• As a reminder, the employer will pay Class 1B NICs on the earnings within PSA at a rate of 13.8% for benefits and expenses provided during 2024/25.
• HMRC recommend that PSA calculations for the 2024/25 tax year are sent to them by 31 July 2025, even if it is a nil return.
• Employers have to pay the total amount by 22 October 2025 where payments are made electronically (or 19 October 2025 otherwise). When paying, employers should quote their PSA reference number.

Taxed award scheme (TAS)

• TAS are schemes similar to PSAs, but are used where third party companies are engaged to provide non-cash incentive awards such as benefits or non-cash vouchers to employees on behalf of their employer.
• Income tax and Class 1A NICs are due on any such awards. 
• Employees must be provided with the grossed-up value of the award and the tax paid on it in order to report the award on their tax return. 
• A TAS for awards given in 2024/25 must be agreed with HMRC and filed by 6 July 2025. Class 1A NICs should be paid by 22 July 2025. 
• The Incentive Award Unit deals with all aspects of a TAS, including the valuation of awards and the type of contractual arrangement. Read further details on how to contact the Incentive Award Unit.

Employers PAYE and disputed charges

• HMRC is developing improvements to support disputed charges in PAYE for employers and will be introducing an online form which will enable employers to report disputes in relation to their PAYE liabilities. 
• Currently, employers can submit disputed charges by calling Employers Helpline on 0300 200 3200 or by writing to HMRC at: PT Operations North East England, HM Revenue and Customs, BX9 1BX. 

Pensions for seasonal temporary staff

• Employers who take on extra staff over the summer must:
  • check if these workers are eligible for automatic enrolment into a workplace pension; and
  • individually assess any seasonal or temporary staff every time they pay them. This includes staff with variable hours and pay, whether they are employed for a few days or longer.
• Employers who fail to comply with their workplace pensions’ duties may receive a warning notice with a deadline to comply. Continued non-compliance may result in a fine.
• If employers have staff who they know will be working for them for less than three months, they can use postponement to delay assessing those employees. This pauses the duty to assess those staff until the end of the three-month postponement period.