Here are some key updates and reminders from HMRC’s latest agent update issue number 131:

Employment related securities (ERS) – end-of-year return deadline

The deadline for filing annual ERS returns is 6 July 2025. Missing the deadline will result in late filing penalties being charged to the employer.

Returns, including nil returns, must be submitted for every scheme that has been registered.

An ERS scheme needs to be linked to a live employer Pay as You earn (PAYE) scheme. If the PAYE scheme is being closed, you must advise the scheme employer to tell HMRC if they are closing any ERS schemes. As an agent, you do not have the function to enter the date of the final event and close an ERS scheme.

If a scheme has been registered in error or it is no longer required, you must advise the employer to cease the ERS scheme. Once a scheme is ceased, an annual return must still be submitted for the tax year in which the final event date falls.

Issuing of Unique Taxpayer References over the phone

As part of our ongoing commitment to keep our customer data secure, we are no longer providing Unique Taxpayer References over the phone.

Customers will be able to find their Unique Taxpayer Reference (UTR):

• in the HMRC app
• in their personal tax account
• on previous tax returns and other documents from HMRC (for example, notices to file a return or payment reminders)

If a customer cannot find their UTR online or on any documents, we will send it to them by post after they have successfully answered a series of security questions. 

Agents that call on behalf of their client will be advised where the UTR can be found. If they cannot find the UTR online or on any documents, we will send a letter direct to the agent’s client. This letter can take up to 2 weeks to arrive.

Mandating the reporting of Benefits in Kind and expenses through payroll software — an update

On 28 April 2025, following feedback from external stakeholders, the government announced that the mandatory reporting and paying of Income Tax and Class 1A National Insurance contributions on Benefits in kind (BiK) will be introduced from April 2027 instead of April 2026. This will provide more time for employers, payroll professionals, software providers, tax agents and other stakeholders to prepare for the change.

HMRC has published a technical note mandating the reporting of benefits in kind and expenses which provides more operational information on how businesses can adapt to these changes in time for April 2027.

Get ready for payrolling

It may be worth considering registering to voluntarily payroll your clients’ benefits in kind from April 2026. This will help you to familiarise yourself with the process of reporting benefits in kind using payroll software in readiness for mandatory payrolling. It will also provide an opportunity to test how your organisation’s payroll processes and systems work and adapt them for real-time reporting if required.

If you wish to do this, you must register for voluntary payrolling by April 2026 to be able to voluntarily payroll your clients’ BiK in the 2026 to 2027 tax year. You can only start to payroll benefits and expenses from the beginning of the new tax year.

Not all BiK can be reported through the current voluntary payrolling system for the 2026 to 2027 tax year. Interest free and low interest (beneficial) loans and employment-related living accommodation will still need to be reported on a P11D for Income Tax.

For the 2026 to 2027 tax year, you will still need to report the Class 1A National Insurance for all BiK by submitting a P11D(b) online form. You must still complete and submit P11D forms for any benefits and expenses which have not been payrolled.

Make sure employees are informed about moving from a P11D and P11D(b) reporting process to real-time reporting.

Read more information about how to report expenses and benefits provided to employees and directors through the voluntary payrolling system.

We will continue to engage with stakeholders to make sure that the mandatory reporting of BiK and taxable expenses through payroll software works for both HMRC and customers.