HM Revenue & Customs (HMRC) has released the February 2026 edition of its Employer Bulletin, providing important updates and practical guidance for employers as the tax year-end approaches. The publication covers several significant developments that will impact payroll processes, compliance obligations, and workforce planning.
Below is a summary of the key points and what they mean for employers.
Reporting Expenses and Benefits for 2025/26
Employers are reminded to prepare for reporting expenses and benefits for the tax year ending 5 April 2026. This includes:
- Ensuring accurate submission of P11D and P11D(b) forms
- Reviewing benefits provided to employees, including company cars, medical insurance, and reimbursed expenses
- Considering payrolling benefits where applicable
Early preparation is essential to avoid errors, penalties, and last-minute administrative pressure.
End-of-Year Reporting Obligations
With the tax year-end approaching, HMRC highlights the importance of completing all payroll reporting requirements accurately and on time. Key actions include:
- Finalising Full Payment Submissions (FPS) and Employer Payment Summaries (EPS)
- Providing employees with P60s by the statutory deadline
- Reconciling payroll records to ensure consistency with submissions
Failure to meet deadlines or inaccuracies in reporting can result in compliance issues and potential penalties.
State Pension Age Changes
Upcoming changes to the State Pension age will have a direct impact on payroll operations. Employers should:
- Review employee age profiles
- Update payroll systems to reflect revised pension eligibility thresholds
- Communicate changes clearly to affected employees
These adjustments are particularly relevant for workforce planning and retirement-related benefits.
Employment Rights Act 2025 Implementation
The introduction of the Employment Rights Act 2025 brings significant changes to employment law. While implementation details are still evolving, employers should begin preparing for:
- Enhanced employee protections
- Potential updates to contracts and HR policies
- Increased compliance and documentation requirements
Proactive planning will be key to ensuring a smooth transition.
Statutory Sick Pay (SSP) Changes
Updates to Statutory Sick Pay (SSP) are also highlighted in this issue. Employers should:
- Review eligibility criteria and payment structures
- Ensure payroll systems are updated accordingly
- Train HR and payroll teams on any procedural changes
These updates may affect both cost management and employee support policies.
Tax Code Changes for Winter Payment Recovery
HMRC has introduced tax code adjustments to recover overpaid winter fuel payments. Employers need to:
- Monitor tax code notices issued to employees
- Apply changes correctly through payroll
- Address employee queries regarding adjustments
Clear communication will help minimise confusion among employees affected by these changes.
How Parker Russell UK Can Assist
At Parker Russell UK, we understand that keeping up with evolving HMRC guidance can be challenging. Our team of payroll and tax specialists can support your business by:
- Managing end-of-year payroll processes and submissions
- Reviewing and advising on expenses and benefits reporting
- Ensuring compliance with SSP and tax code changes
- Supporting implementation of new employment legislation
- Providing strategic advice on workforce and pension-related changes
By partnering with Parker Russell UK, you can ensure compliance, reduce administrative burden and focus on running your business with confidence.
