Now that the 2025/26 tax year is underway, look ahead to the various end-of-year employer reporting obligations your business may be required to comply with. To support you in this regard, we have compiled below a summary of these obligations. If you wish to speak with an expert or have any questions, please contact one of our employment tax specialists listed below.
P11D / P11D(b)
P11D / P11D(b) are required to report employee benefits in kind (e.g. company cars, private medical insurance, etc). Even if employers have applied to payroll their benefits in kind, a requirement to submit a P11D(b) remains.
- What do employers often overlook?: Outstanding director current accounts (which can give rise to a “beneficial loan” BIK)
- What is the deadline?: 6 July 2026
PAYE Settlement Agreement (“PSA”)
PAYE Settlement Agreement (“PSA”) are required to settle the tax and NIC associated with certain employee benefits and expenses (e.g. staff gifts).
- What do employers often overlook?: Staff entertaining, e.g. employee lunches, drinks etc. (these costs are often taxable benefits)
- What is the deadline?:
- 5 July 2026 to apply for a new PSA
- 22 Oct 2026 to pay the tax/NIC
Short term business visitor agreement (“STBVA”) report
A STBVA is an agreement with HMRC to relax PAYE withholding on remuneration paid to non-UK employees carrying out duties in the UK. The annual report provides HMRC with relevant information of such activity in the tax year.
- What do employers often overlook?: If employers have employees outside the UK, occasionally carrying out duties in the UK, and don’t have a STBVA, UK PAYE will usually be payable
- What is the deadline?: 31 May 2026
Employee share plan return
Employee share plan returns are required to report to HMRC any employee share plan activity (e.g. grants of share options, exercises of share options, transfers/issues of shares or loan notes to employees/directors etc).
- What do employers often overlook?: One-off acquisitions of securities by employees/directors are also reportable (they don’t need to form part of a wider “plan”)
- What is the deadline?: 6 July 2026
Appendix 5 Year End Reporting
Appendix 5 arrangements enable real time relief for foreign taxes to be claimed in the UK payroll. All employers that operate such an arrangement are required to report final details of foreign taxes deducted and paid.
- What do employers often overlook?: Employers should have included any net UK tax deducted on their employees Full Payment Submissions throughout the year and any errors should have been corrected before the end of the tax year.
- What is the deadline?: As soon as possible after end of tax year.
Internationally mobile employee self assessment tax returns
If you have internationally mobile employees, it is likely that self assessment tax returns may be required (both in the UK and elsewhere). The employees residency position should also be reviewed.
- What do employers often overlook?: The social security position is often overlooked – it is important to review and understand any potential exemptions.
- What is the deadline?: 31 Jan 2027, but important to start earlier and establish residency position.
In addition, below are a few other important matters to keep in mind going forward:
| Subject area |
What is changing |
Things to consider |
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National minimum wage
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For over 21s, the hourly rate is £12.21 (from 1 April 2025) this will increase again from April 2026 (rate not yet announced).
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Employers need to be careful if they are operating any salary sacrifice schemes.
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Payrolling of benefits
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HMRC has said compulsory payrolling of benefits will be introduced from 6 April 2027.
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Employers may wish to consider the merits of introducing earlier. To start on 6 April 2026 employers need to have registered by 5 April 2026.
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Holiday pay
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Commission, overtime, bonuses, and allowances should now be included when calculating the appropriate rate of holiday pay for employees.
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The look back period is capped at 2 years in GB – no such cap applies in NI.
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