June’s HMRC Employer Bulletin is packed with updates that payroll professionals can’t afford to miss. With critical deadlines looming, evolving legislation, and economic shifts visible in real-time payroll data, it’s a month that demands attention and precision.

The PAYE Settlement Agreement (PSA) submission deadline for the 2024–25 tax year is set for 31 July. Even if you’re filing a NIL return, it must be submitted. For regular monthly payrolls, the electronic payment for June PAYE needs to clear HMRC’s account by 20 June—late payments can result in interest or penalties.

Significant changes are underway in pensions and lump sum reporting. Since the abolition of the Lifetime Allowance, payroll systems must now capture and report lump sum payments using new RTI fields. If your software hasn’t yet integrated these fields, an urgent review is essential. Employers hiring seasonal or temporary workers should also re-check auto-enrolment eligibility with every payroll—eligibility can change quickly, and non-compliance carries risks.

The employer National Insurance relief for hiring veterans has been extended until April 2026, giving businesses an added incentive to support veteran employment. Meanwhile, the introduction of Statutory Neonatal Care Leave and Pay from April 2025 offers up to 12 weeks’ paid leave for parents whose newborns require neonatal care. Payroll teams should prepare for the policy’s rollout, including system updates and leave tracking processes.

HMRC has issued a clear warning about the rising risks associated with umbrella companies and labour intermediaries. Due diligence and careful supply chain management are more important than ever, especially in light of increased organised fraud activity in this space.

On a forward-looking note, the mandatory shift to payrolling Benefits in Kind (BiKs) has been pushed back to April 2027. While the extra time provides breathing room, early planning will help ensure a smooth transition. The latest version of HMRC’s Basic PAYE Tools is also now available and should be installed promptly to avoid compliance issues.

Recent figures from HMRC and ONS show a marked decline in the number of payrolled employees—down 109,000 in May alone. This represents the sharpest fall since the pandemic period in 2020 and is closely linked to the recent rise in employer National Insurance costs. Businesses are responding with a mix of job cuts, price increases, and hiring freezes.

Payroll is more than just processing numbers—it’s a reflection of business health and national economic trends. Staying ahead of legislative changes, ensuring system accuracy, and preparing for what’s coming next are key to running an efficient and compliant payroll operation in 2025.