Employer Bulletin: August 2026

HMRC have published their Employer Bulletin for August 2026. Key content includes information and deadline reminders for PAYE, Benefits In Kind, mandatory payrolling and Employment-Related Securities (ERS), as well as confirming the recent update to mileage payment rates and providing information for those employing short-term business visitors.

employer bulletin

P11D and P11D(b) for tax year 2025-26

P11D and P11D(b) filing and payment deadlines:

  • The deadline for telling HMRC online about any Class 1A National Insurance contributions owed for the tax year ending 5 April 2026 was 6 July 2026.
    • If you still have not done this, you need to submit a P11D(b) online without delay to avoid any further Penalties that may be issued.
    • You also need to send P11D forms online for any employees, unless you registered before 6 April 2025 to tax their expenses and benefits through the payroll.
  • Any Class 1A National Insurance you owe must have been paid by 22 July 2026.
  • There are a number of live webinars available covering submitting your P11D and P11D(b). 

How to submit P11D and P11D(b) online:

What to file:

  • If you provided any benefits and/or non-exempt expenses to your employees, you need to file a P11D(b).
    • Include the total benefits liable to Class 1A National Insurance Contributions, even if you taxed some or all of them through your employees’ pay.
  • You need to submit a P11D for each employee in receipt of benefits and/or non-exempt expenses unless you registered with HMRC before 6 April 2025 to tax them through your payroll.
    • If you payrolled your employees’ expenses and benefits, it is important you do not complete P11D’s; only a P11D(b) is required.

Nothing to declare:

See P11D and P11D(b): Index

Company Car tax Calculator:

See Company cars

Phased roll-out for mandatory payrolling benefits in kind: actions for you to take now

Employers should be preparing for reporting Benefits In Kind (BIKs) in real time, as outlined in the Mandatory payrolling of benefits in kind and expenses - interim guidance and legislation.

Communicating to employees:

  • You must make employees aware of these changes. Early communication is key to enabling them to understand how this might affect their tax codes and take-home pay.
  • You should explain how:
    • Employees who currently pay tax in arrears on BIKs will not do so from April 2027 onwards for BIKs payrolled in phase 1. Many employees may not realise this is how they are paying tax on BIKs, and that next year they will pay tax on their BIKs for cars, vans, fuel (for both cars and vans) and medical benefits in the year they receive them.
    • They may currently have a deduction in their tax code so they pay tax on an estimated benefit. This will no longer be the case from April 2027.
    • Tax on phase 1 BIKs must be paid in real time in the year they are received.
  • Where your employee is also repaying an underpayment of tax on a benefit provided in a previous year, it will be helpful for you to explain why it might feel from April 2027 that they are ‘paying tax twice’ on the BIKs. However, that is not the case in reality.
  • You should act now, well ahead of the changes, and will need to:
    • Explain how your employees will be paying tax in real time on the cars, vans, fuel (for both cars and vans) and medical BIKs they receive for the 2027-28 tax year, while they may also be catching up with payments for any BIKs from the previous tax year once mandatory payrolling applies.
    • Use clear and accurate wording or terminology in any communications to explain this very important distinction. Avoid terminology such as ‘double taxation’ that could imply additional tax is being collected, which is not correct.
    • Be prepared for instances where your employee is paying tax in the current year as well as underpayments for previous years which may be related to BIKs.
    • Advise your employee to contact HMRC to discuss options based on their circumstances if this overlapping taxation causes hardship.

Your preparations for mandatory payrolling BIKs for phase 1:

  • It is now time for you to take steps in Getting ready for mandatory payrolling in phase 1. You should:
    • Make a list of all the BIKs you offer and would ordinarily report to HMRC on a P11D form.
    • Make sure your payroll software can handle real-time reporting of BIKs for phase 1 and that it complies with HMRC’s requirements. The software may not be ready now, but this functionality will need to be in place by April 2027.
    • Plan out how you will manage employees who leave or join during the tax year, or benefits that change in value
    • Read more information on Mandatory payrolling of benefits in kind and expenses - interim guidance and legislation, including sections on communicating to employees and preparing for the transition to real-time reporting of BIKs.
    • Understand the process for dealing with any underpayment or overpayment and support employees.

Voluntary payrolling:

See Payrolling of benefits and Mandatory payrolling of benefits from 2027: Briefing

Make your PAYE Settlement Agreement (PSA) payment

A PAYE Settlement Agreement (PSA) allows you to make one annual payment to cover all the tax and National Insurance due on small or irregular taxable expenses or benefits for your employees.

  • Any electronic payments for a PSA for the tax year 2025-26 must clear into HMRC’s account by 22 October 2026. If your payment is received late, you may have to pay interest and a late payment penalty.
  • To pay, you will need to use the PSA reference number, for example, XA123456789012 from the payslip HMRC sent to you. If you do not have this, contact the Employer helpline for advice.
    • Do not use your PAYE Accounts Office reference, for example 123PA12345678, to make your PSA payment. Payments received with your PAYE Accounts Office reference are allocated to your normal PAYE account and you will continue to receive reminders for the PSA even though you have paid.

See PAYE Settlement Agreements

Electronic payment deadline falls on a weekend

In August 2026, the electronic payment deadline fell on Saturday 22 August 2026. To make sure your payment for this month reached HMRC on time, you needed to have funds cleared into HMRC’s account by 20 August 2026, unless you were able to arrange a Faster Payment.

  • It is your responsibility to ensure your payments are made on time and, if your payment is late, you may be charged a penalty.
  • Check your bank or building society’s single transaction daily value limits and cut-off times well in advance of making your payment. Make sure you know when to initiate your payment, so it reaches HMRC on time.
  • Further information on how to Pay employers’ PAYE is available.

See Calendar of tax deadlines and new tax measures

To ensure payments reach HMRC on time when the deadline falls on a weekend day, employers need to ensure that funds have cleared into HMRC's account before the weekend, unless using Faster Payment.

Mileage payment changes for tax year 2026-27

Approved Mileage Allowance Payments (MAPs) have been updated for the 2026-27 tax year. Rates have:

  • Increased to 55p per mile for the first 10,000 miles.
  • Remained at 25p per mile after 10,000 miles.

The National Insurance contributions disregard for Relevant Motoring Expenses (RME) has also increased to 55p per mile.

  • These changes are backdated to 6 April 2026.
  • If you reimburse your employees at or below the approved MAP rate, you may want to increase the amount you reimburse your employees for business mileage in line with the new approved MAP rates.
  • If you paid your employees mileage payments or RME above the old rates, Income Tax and/or Class 1 National Insurance contributions may have been deducted, which may no longer be due. You may need to correct payroll for previous months in 2026-27, so that overpaid tax and both employers' and employees’ Class 1 National Insurance contributions can be refunded. To update payroll, you should follow the PAYE guidance as if you had made an error using Fix problems with running payroll.
  • If you do not reimburse mileage, or if you reimburse at less than the new approved MAPs rate, your employees can follow advice on How to claim tax relief for their job expenses.

See Authorised mileage rates (own vehicle)

Employment-Related Securities: penalties for missed end of year return deadline for employee share schemes

Gifts and awards of shares in companies, often referred to as Employment-Related Securities (ERS), are commonly used by employers to reward, retain or incentivise employees.

  • If you operate an ERS scheme, you are required to submit an End-of-year ERS return, including nil returns, for every scheme registered on the ERS online service against your PAYE scheme.
    • If your scheme has closed, you must enter the final event date online and submit any annual returns for the tax year in which the date of the final event falls.
    • For the 2025-2026 tax year, the deadline for submitting an end-of-year ERS return was on or before 6 July 2026.
    • If you missed the deadline, a £100 late filing penalty will have now been issued to the address associated with the PAYE account.
    • Additional automatic penalties of £300 will be charged if the return is not submitted three months after the original deadline of 6 July 2026. A further £300 will then be charged if it is still outstanding six months after this date.
    • The charge description for Penalties relating to employee share schemes will be referred to as Employment Related Securities.
    • If you appeal against an ERS late-filing penalty, you must ensure you have submitted your outstanding end-of-year returns. An end-of-year return must be submitted to prevent further penalties.
    • More information on How to deal with an Employment-Related Securities penalty is available.

Accessibility improvements to ERS end of year templates from April 2027:

  • To ensure that HMRC documentation is compliant with accessibility regulations, the ERS end-of-year return templates, guidance and technical notes are being reviewed with the aim of making them consistent, clear and more user-friendly.

See Employment-Related Securities: Reporting

Aligning National Insurance Contributions recovery time limits with Income Tax: consultation launch

HMRC is consulting on proposals to align the time limits and processes for recovering National Insurance Contributions (NICs) with those that apply to Income Tax.

  • The Consultation may be relevant to employers and agents who deal with PAYE Income Tax and NIC liabilities.
  • Currently, National Insurance contributions and Income Tax operate under different recovery frameworks.
    • For Income Tax, behavioural time limits apply to the assessment of liability, with no fixed limit on recovery once an assessment has been made.
    • For National Insurance contributions, there are no equivalent assessment time limits. Recovery is generally limited to six years by the Limitation Act 1980, unless action is taken to protect the debt either through the courts or by HMRC entering into a standstill agreement with the taxpayer.
    • This can create complexity where PAYE Income Tax and National Insurance contributions liabilities arise from the same income but are handled through different processes.
  • The consultation seeks views on proposals to:
    • Remove National Insurance contributions from the scope of the Limitation Act 1980.
    • Align the time limits for recovering National Insurance contributions debts with those for tax.
    • Align the time limits for National Insurance contributions repayments with those for tax.
  • The government would like to hear views on whether the proposals would be workable in practice, whether there are any disadvantages or practical constraints, and whether there are further improvements that could be made to the National Insurance contributions recovery process.
  • Aligning the time limits for recover of National Insurance contributions with Income Tax provides further details on the consultation, including how to respond. This consultation closes at 11:59 pm on 12 October 2026.

See Time limits for tax assessments, claims and refunds

Proposals to tackle lower value tax debts in government consultation

As part of the Tax Update package announced on 23 June 2026, the government launched a Consultation on proposals to tackle lower-value tax debts from taxpayers who can afford to pay but persistently choose not to engage with HMRC.

  • Each year, more than 750,000 such debts, worth over £2 billion, remain uncollected after nine months and more than 10 contact attempts. The proposals would extend an existing HMRC enforcement power, enabling HMRC to recover these debts through affordable monthly deductions from a taxpayer’s UK bank or building society account.
  • The consultation outlines a proposed process and stringent safeguards, and HMRC would welcome industry insight and feedback that will help to inform the policy’s development.
  • The consultation on Tackling lower value tax debts closes on 28 August 2026. Details on how to respond are set out in the consultation document.

See Direct Recovery of Debts (enforcement by deductions from accounts)

Guidelines for Compliance (GfC): Help with short-term business visitors (GfC19)

HMRC has recently published new Guidelines for Compliance (GfC) - Help with short-term business visitors. Short-Term Business Visitors (STBVs) are individuals who normally work overseas but come to the UK for short periods to carry out employment duties.

  • These guidelines are primarily for UK employers with overseas employees working in the UK on a short-term basis. However, they will also be useful to overseas employees, professional advisers and representative bodies supporting taxpayers in this area.
  • They provide practical support by:
    • Explaining the Income Tax, National Insurance contributions  and PAYE treatment for STBVs.
    • Highlighting common errors and areas of risk identified by HMRC.
    • Helping taxpayers get their tax right first time.
    • Advising what records and evidence should be retained.
    • Explaining what to do if a mistake is made.
  • GfC products are part of HMRC’s ongoing commitment to publishing practical support for taxpayers. These products complement existing HMRC guidance by clarifying HMRC’s view in complex, widely misunderstood or novel areas of the tax rules.
  • More information on GfC, including other publications, can be found on the Guidelines for Compliance collection page.

See Globally mobile employees: Short-Term Business Visitors

Voluntary National Insurance Contributions abroad

At Budget 2025, the government announced there would be changes to Voluntary National Insurance contributions abroad.

  • As of 6 April 2026, for tax years 2026-27 onwards, the option to pay voluntary Class 2 National Insurance Contributions  (NICs) for periods abroad has been removed and new Class 3 NICs applications for periods abroad will require 10 years’ continuous UK residency or paid at least 10 years of NicS. If you have workers abroad, inform them of the changes that came into effect from April 2026.
  • Taxpayers affected by the change will have received a letter in July or August 2026 outlining the next steps. If you pay voluntary Class 2 NICs on behalf of your employees, you may also be contacted by letter during the same period.
  • The changes do not affect the ability of anyone to purchase voluntary NICs for tax years before 2026-27.
  • HMRC encourages employers to review the latest Voluntary National Insurance guidance.
  • The Voluntary National Insurance contributions for periods abroad from 6 April 2026 tax impact and information note provides further information.

See Globally mobile employees: National Insurance

UK and India Double Contributions Convention

In the February 2026 Employer Bulletin, HMRC informed you of a new National Insurance Double Contributions Convention (DCC) between the UK and India.

  • The DCC formally entered into force on 15 July 2026 and affects employees and their employers moving between the UK and India. The DCC also contains specific rules for government employees, mariners and aircrew.
  • The UK and India have agreed to extend the detached worker provision in the DCC from three to five years.
    • This means that employees from one country who are sent to work temporarily in the other country for up to five years will continue to pay contributions only in their home country. For UK employees sent by their UK employers to work temporarily in India for up to five years, they will continue to pay UK NICs during their period of work in India. They will not have to pay contributions into the Indian scheme.
  • HMRC has also now published technical guidance in the National Insurance manual at NIM33250, giving their view of how the provisions of the DCC work, which employers should consider ahead of any employee movement between the UK and India.
  • Employees who will remain liable to pay UK National Insurance contributions whilst working in India, or their employers, can now Apply to HMRC for certificates of coverage using the online CA9107 form. These certificates confirm that an employee will continue to pay National Insurance contributions in the UK and will not be liable to pay social security contributions in India.

See Globally mobile employees: National Insurance

Changes to the multi-year tax refund process  

HMRC are changing how repayments are issued for the majority of employees who make a multi-year P800 tax refund request.   

  • Employees who make a claim for a multi‑year tax refund will now need to request their repayment through HMRC’s digital services, rather than automatically receiving a cheque.   
  • This change aligns multi‑year claims with the wider P800 repayment process introduced in May 2024, where taxpayers must take action to receive any money they are owed.     

What this means for your employees:

  • There are no changes to the process for employees requesting multi-year claims.  
  • Once their claim has been processed, they will receive a P800 Tax Calculation letter and be asked to request their repayment.  
  • Repayments are no longer issued automatically by cheque. 
  • The quickest way to receive payment is through HMRC’s digital services. 
  • We may contact employees during the process to explain how to claim their repayment.   

How employees receive their repayment:  

  • Once a claim has been agreed, employees can request their repayment through the HMRC app or their Personal tax account.  
  • Employees do not need to be fully set up for HMRC online services to request a tax refund.  
    • They can request their refund through the Tax overpayments and underpayments page using the unique reference number in their P800 letter and their National Insurance number, rather than signing in with Government Gateway credentials. 
  • Repayments requested digitally are normally made by bank transfer within one week.    
  • Those who prefer a cheque or are digitally excluded can still choose to request a cheque, but this will take longer. Further information and options for receiving payment are available by contacting Income Tax enquiries.

Tax fraud warning for employment agencies and employers: schemes claiming to reduce liabilities using tax credits

HMRC have published a Tax fraud warning for employment agencies and employers brief to raise awareness of new fraudulent models which are being marketed to employers and recruitment agencies offering ‘cheaper’ payroll services.

  • Organised crime groups are particularly active in the temporary employment agency and recruitment sector.
  • HMRC want to help you stay clear of fraudulent arrangements that could lead to significant financial risk to your business.
  • HMRC are aware that businesses are being approached by organisations offering models which falsely claim to be able to reduce employment costs through ‘tax credits’ offset from third-party businesses they have acquired.
    • The organisations offering these models may call themselves, but not exclusively, payroll providers, intermediaries, umbrella solutions or back-office providers.
    • These organisations falsely claim they can acquire businesses that have tax credits on file with HMRC, which may include businesses in pre-administration.
    • They claim to use the tax credits to offset employment taxes, such as PAYE and National Insurance due to HMRC, by operating the payroll and, as a result, can reduce the amount you need to pay.
    • Often in these arrangements, none of the taxes due to HMRC is being paid. They do this by simply not paying the taxes over to HMRC or creating false documents to give the impression that the appropriate returns are made to HMRC and the taxes paid over.
  • To find out more about how these models are marketed, why they should not be used and what you should do to protect yourself, read: Tax fraud warning for employment agencies and employers brief.
  • You can Report tax fraud and tax avoidance arrangements, schemes and the person offering them to HMRC by using the online form to report tax fraud.
  • A separate tax fraud warning article has been issued on Bills of Exchange. Further information on this is below.

See Tax fraud warning for employment agencies and employers

Tax fraud warning: attempts to use Bills of Exchange to pay HMRC 

HMRC has published a Tax fraud warning to raise awareness of a new fraudulent payment model using Bills of Exchange as a way to pay a tax liability.  

  • A Bill of Exchange is defined in the Bills of Exchange Act 1882. It is a note from one person to another, requiring that person to pay a certain sum of money to them or to a third party. However, it is up to the recipient to decide whether or not to accept the Bill of Exchange as a form of payment. Even when the bill has been drawn up according to the legislation, the recipient has no legal obligation to accept it. HMRC does not accept Bills of Exchange against a tax liability.  
    • Further information on Bills of Exchange is available on the legislation.gov website. 
    • It is currently being marketed to employers, recruitment and temporary labour agencies, but any business could be approached as it is not tax or sector-specific.  
    • Organised crime groups are particularly active in the temporary employment agency and recruitment sector, but HMRC wants to raise awareness to all businesses.  
    • Promoters claim that a Bill of Exchange can be used to wipe out HMRC debt. They offer to manage the process for businesses, particularly payroll providers, and act on the business’s behalf of drawing up any affidavits and engaging with HMRC.  
    • In addition to Bills of Exchange, other forms of wording in promotional material may include reference to money orders, public trusts, merchant law or negotiable instruments.  
    • Promoters may also claim that using Bills of Exchange can avoid the new Umbrella company legislation that was introduced from April 2026. HMRC states that this is not true. Details of the changes to Income Tax rules to tackle non-compliance within umbrella companies is available. 
    • In some cases, promoters may claim that the use of these arrangements are accepted or unchallenged by HMRC, or that the arrangements have been approved by Kings Counsel. This is not the case.  
    • Using these arrangements could significantly cost your business, not only through paying the promoter to use or facilitate their payment model, but also additional interest, penalties or fees that may be charged by HMRC where a debt is not fully paid on time.  
  • HMRC sets out How to pay different taxes and duties, including what to do if you have difficulties paying and What will happen if you do not pay your tax bill. 
  • If you are concerned about an individual or organisation offering you a tax saving arrangement, avoidance scheme or fraud arrangement, you can report it to HMRC using the Report tax fraud or avoidance online form.  
    • You can submit this form anonymously and do not have to give your name, address or your email. If you cannot use the online form, you can phone HMRC to report tax fraud or avoidance on 0800 788 887. 
  • A separate tax fraud warning article has been issued on tax credits reducing employers’ liabilities. Further information on this is available above.

See Tax fraud warning on Bills of Exchange

Look again to spot bad tax advice

HMRC’s Don’t get caught out campaign is helping contractors working through umbrella companies to spot bad tax advice and watch out for tax avoidance schemes.

  • Employers can help HMRC protect contractors from tax avoidance by sharing HMRC’s campaign resources in newsletters, websites and across social media.
  • Contractors can use HMRC guidance, interactive tools and personal stories to get help to identify, leave or report a tax avoidance scheme. A short YouTube video on umbrella companies and what the risks are to contractors explains how they can check their pay arrangement to make sure they are not in a tax avoidance scheme.   
  • Whether your contractor already works through an umbrella company or is thinking of signing up, they should check the Named tax schemes, promoters, enablers and suppliers report. It is not a complete list of all tax avoidance schemes and if a scheme is not shown, this does not mean that it works. HMRC never approves tax avoidance schemes.

 See Agency workers: Umbrellas & anti-avoidance PAYE rules

Help your parent or carer employees receive the Child Benefit payments they are entitled to 

Parents and carers whose children remain in full-time education can continue to receive Child Benefit through the HMRC app or online.

  • This includes those who:
    • Will study at home due to illness or disability.
    • Start approved training.
  • If the child is starting the second year of a full-time non-advanced education course, they do not need to contact HMRC.  
  • Parents and carers can update their claim in minutes, whether they are at home or on the go. Extending Child Benefit online means parents or carers do not need to call HMRC.  
  • Anyone who wants to continue receiving Child Benefit needs to act before 31 August, or their payments will stop.  
  • Any parent or carer who extends their Child Benefit, and they or their partner has an income of more than £60,000, will still be liable to pay the High-Income Child Benefit Charge, which can now be paid through their PAYE tax code.  
  • Share this message with your employees to encourage them to extend their Child Benefit online.

Low earner’s pension payment: what employers need to know

In the June Employer Bulletin, HMRC advised that from August 2026 they would begin contacting around one million eligible individuals directly about the low earner’s pension payment, previously referred to as the low earner’s anomaly.

  • There has been a small delay to the delivery of the scheme. Payments for contributions made in 2024-2025 will now begin in the coming months, with HMRC taking a phased approach and gradually expanding the rollout over the remainder of the year and into early 2027. HMRC will keep you updated on progress in future bulletins.

What this means for employers:

  • No action is required for employers or payroll teams. There is no requirement to apply, assess eligibility, amend payroll records, or contact HMRC on behalf of employees. HMRC will contact eligible individuals directly. If employees ask you about this payment, you can reassure them that HMRC will be in touch with those who qualify.

Help improve GOV.UK guidance for employers

HMRC are looking for people involved in running employee payrolls to help shape GOV.UK guidance for employers.

  • If you would like to take part in user research, email This email address is being protected from spambots. You need JavaScript enabled to view it. with your name, email address and role title.
  • You may be invited to take part in a research session online using Microsoft Teams, and HMRC offer a voucher as a thank you for taking part.
  • Any information you give will be:
    • Anonymised.
    • Confidential.
    • Used for research purposes only.
    • Held securely at all times in line with data protection law.

Report Fraud advice on ransomware attacks 

Ransomware remains one of the biggest threats to businesses and organisations across the UK. Report Fraud received 323 reports of ransomware attacks in 2025 to 2026, with over half of these coming from small and medium enterprises. 

  • Ransomware is a type of malware which prevents you from accessing your device and the data stored on it, usually by encrypting your files. A criminal will then demand a ransom in exchange for unlocking the files or data held.
  • To help protect your business, you should:  
    • Make regular backups of your most important files 
    • Use tools and techniques to prevent malware being delivered, such as mail filtering, to only allow certain file types, and blocking malicious websites
    • Take steps to prevent malware running on devices, such as centrally managing devices and considering antivirus and anti-malware products.
    • Prepare for a potential incident by identifying your critical assets and determining how you would respond to a ransom demand.
  • If you are a small or medium-sized business and experience a ransomware attack, Report Fraud advises you to:
    • Report it to the police immediately by calling Report Fraud on 0300 123 2040 if you are in England, Wales or Northern Ireland.
    • Report it to the police by calling 101 if your organisation is based in Scotland, the Isle of Man or the Channel Islands.
    • Do not pay the ransom, as the National Cyber Security Centre and UK law enforcement do not recommend paying ransom demands and there is no guarantee of regaining data access or that devices will no longer be infected.
  • If you are a large organisation experiencing a ransomware attack, use this Cyber Incident Signposting Service for Guidance on where to report a cyber incident.
  • For more information on Protecting your business against ransomware, see the guidance from the National Cyber Security Centre website.  

Employment Rights Act 2025: actions to take now 

As part of the ongoing implementation of the Employment Rights Act 2025, employers should start getting ready now for changes from October 2026 onwards.  

Important changes from October 2026:

  • Workplace sexual harassment protections. 
  • Reforms to trade union law.
    • A new legal right for independent trade unions to access workplaces and engage with workers.  
    • A new duty on employers to tell workers about their right to join a union.  
    • For more information, read  ‘Trade Union right of access - new rules from October 2026’  below.
  • Prepare for unfair dismissal reforms.
    • Unfair dismissal changes will come into effect from 1 January 2027, when the qualifying period is reduced from two years to six months. Employees who have completed 6 months’ service by that date will gain unfair dismissal protection immediately and will have the right to make a claim.
      • If an employee is recruited after July 2026, they will gain protection six months after their start date.
      • Given the scale of this change, employers should be preparing now.  
    • Acas has published new guidance on probation periods as part of Acas’s advice on hiring someone. This guidance will help businesses understand how to prepare a fair process, set clear expectations and support people in their new roles.    
    • Plan to Make Work Pay and Employment Rights Act timeline update provides a full list of the reforms and when they will take effect.   
  • Engage with HMRC on consultations.    
    • The Department for Business and Trade are currently seeking views on a number of employment law reforms, including reforms to zero-hours and similar contracts.  
    • All current consultations, plus details of closed consultations and published outcomes, can be found at Make Work Pay.  

See Making Work Pay: At a glance

Trade Union right of access: new rules from October 2026 

The Employment Rights Act 2025 introduces a new legal right for independent trade unions to access workplaces and engage with workers, either in person or virtually.    

  • Employers and unions will be able to agree access arrangements under a statutory framework. If they cannot reach agreement, either party will be able to apply to the Central Arbitration Committee (CAC) for a decision.   
  • The key changes coming into force in October 2026 are:  
    • Independent trade unions will be able to formally submit a request to employers to access their workplaces.  
    • Access can be physical, digital or a combination of both.
    • If agreement cannot be reached, either party will be able to apply to the CAC.
    • Employers who employ fewer than 21 workers across all of their workplaces will be exempt from these provisions.
    • The CAC will be responsible for overseeing and enforcing statutory access agreements and can issue fines for breaches of an agreement.
  • A statutory code of practice will provide guidance and further information on how access should operate in practice.  

October 2026 implementation:

Getting conflict competent 

Healthy workplace relations are not a soft aspiration; they are a business essential. When people trust one another, feel able to raise concerns early, and are taught the skills to resolve disagreements constructively, organisations perform better.  

  • Workplace conflict which is avoided, allowed to harden, or formalised too quickly impacts wellbeing, retention, productivity and profit.   
  • The good news is that employers can act by:  
    • Investing in the confidence and capability of your line managers.  
    • Creating a culture where early, informal resolution is supported.  
    • Encouraging leadership, employees and unions to work in partnership.  
    • Making mediation part of the process and formal grievances or tribunal claims a last resort.  
  • The Advisory, Conciliation and Arbitration Service (Acas) is the independent public body providing free, impartial advice and practical support to both employers and workers. It can help prevent problems with free advice and guidance and prepare for changes in the Employment Rights Act.   
    • The Acas website has more information , including courses and other learning and development offers.

External link

HMRC: August 2026 issue of the Employer Bulletin