UK Payroll Updates For Employers - November 2025

For employers in the UK, understanding upcoming changes for the 2025-26 tax year is crucial to ensuring compliance and planning for the months ahead. The following focuses on key tax and payroll-related changes that may affect payroll operations with considerations for tax administration, employee benefits, and overall compliance.

GOV.UK One Login Security Update

• From 13 October 2025, access to Companies House WebFiling will require GOV.UK One Login, which has replaced the old Government Gateway sign-in system.
• Link your existing WebFiling account to GOV.UK One Login. Ensure your email address is up to date and matches across services
• Starting 18 November 2025, all directors and Persons with Significant Control (PSC) must complete identity verification. The verification can be done via GOV.UK One Login or through an authorised agent.
• This new method brings stronger security through two-factor authentication. Also facilitates single login for multiple government services.

Electronic payment deadline falls on a weekend in November

• In November 2025, the deadline for making PAYE electronic payment falls on Saturday, 22 November. To ensure the HMRC receives the payment on time, please initiate the online payment through your bank before 21 November.

Update on timing and deduction of employer pension contributions to claim tax relief

• Employer pension contributions to a registered pension scheme are generally deductible as a business expense. This reduces taxable profits, ultimately reducing the overall tax bill.
• The contributions must be wholly and exclusively for the trade or profession.
• The contributions must be actually paid (not just accrued) to be deductible. Hence, relief applies in the accounting period in which payment is made.
• For companies with investment business, contributions are deductible as management expenses.
• This rule applies to UK and international employers contributing to UK-registered schemes. This relief is also available for 'migrant member contributions'

Working time defined for minimum wage purposes

• The minimum wage is calculated based on an hourly rate, so HMRC has issued guidance on what counts as working time under National Minimum Wage (NMW) rules.
• Working time includes time spent:
  • At work and required to be working or on standby near the workplace (but do not include rest breaks).
  • In waiting at the workplace due to machine breakdowns or delays.
  • In waiting to collect goods, meet someone for work, or start a job.
  • In training, travel between work assignments or for training.
  • At work and under specific work-related responsibilities, even when allowed to sleep (e.g., sleep-in shifts).
• Working time excludes time spent:
  • In travel between home and work.
  • On rest breaks, holidays, sick leave, or maternity leave.
  • On industrial action periods.
  • When not working, but at the workplace workers are allowed to sleep.

A Reminder to employers about National Insurance calculation methods for directors

• Employers should check the National Insurance Contributions (NIC) due at the end of the tax year using the annual earnings period method to identify any shortfalls for all employees, including directors.
• Please review the submissions for the 2022 to 2023 tax years and subsequent years to ensure that no further NIC is due. If there are any underpayments, please self-correct through PAYE wherever possible. If the employer is unable to self-correct, then please make disclosure to HMRC.

No need to phone - online methods of contacting HMRC

• Employers can use of the PAYE Online services by registering with HMRC.
• Once registered for PAYE Online, the employer can check the balance owed to HMRC, receive important notices for late payments, access employees tax codes, appeal penalties, and check payment history. Now, there is no need to call HMRC to check if the payment has been received.
• Employers can submit requests online to claim repayments or correct errors on the PAYE bill. HMRC Replies can be checked online without having to call them.

Guidance on Real Time Information (RTI) reporting obligations for payments made early during Christmas

• If employers plan to pay their employees earlier than usual in December due to the festive season, they must report the expected or contractual payment date on Full Payment Submissions (FPS). For example, if payment is done early on 16 December and the excepted date is 31 December, then report the payment date as 31 December in FPS. This will help the employees to protect their eligibility for income-based benefits.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.