United Kingdom: HMRC Employer Bulletin: August 2026 edition published

Impact

• The August Employer Bulletin highlights several changes relevant to UK employers and payroll teams. A key forward-looking item is the phased introduction of mandatory payrolling of benefits in kind. From April 2027, mandatory payrolling will initially cover company cars, car fuel, vans, van fuel and private medical benefits. Employers will be able to register from November 2026 to voluntarily payroll other non-mandatory BIKs, including employment-related loans and accommodation, from April 2027. Most other BIKs are planned to become subject to mandatory payrolling from April 2028.
• The mileage guidance increases Approved Mileage Allowance Payments to 55p per mile for the first 10,000 business miles and retains 25p per mile thereafter for the 2026–27 tax year. The changes are backdated to 6 April 2026, so employers may need to review and correct previous payroll calculations where relevant.
• The bulletin also highlights a consultation on aligning National Insurance contributions recovery time limits with Income Tax. The consultation closes on 12 October 2026. Employers should also prepare for Employment Rights Act 2025 changes, including new Trade Union right-of-access provisions expected to take effect from 30 October 2026, subject to parliamentary approval.
• The electronic PAYE payment deadline in August 2026 fell on Saturday 22 August. HMRC required funds to be cleared into its account by 20 August 2026 unless the employer was able to use a Faster Payment arrangement.