HMRC have published its Spring Tax Update 2025, which contains a number of tax simplification changes taking effect from the start of this tax year or in later months.

United Kingdom Employment and HR

Kathy Granby Your Author LinkedIn Connections

HMRC have published its Spring Tax Update 2025, which contains a number of tax simplification changes taking effect from the start of this tax year or in later months.

As part of this update HMRC have confirmed that, from 1 May 2025, employers no longer need to obtain pre-approval for their employer NICs joint election forms for employment-related securities, provided they use HMRC's published model template (either a one-part election for use for a single employee, or a two-part election for use for multiple employees).

Companies remain free however to use their own form of election should they wish, and the HMRC pre-approval requirement continues to apply in that case. Further HMRC guidance can be found here.

It has long been possible for an employer to transfer its liability to secondary (employer) Class 1 National Insurance contributions (NICs) arising on certain taxable events relating to employment-related securities to the employee concerned, via one of two methods:

1. Employer NICs joint election – the employer may formally transfer the relevant employer NICs liability away from itself and onto the employee; however, in practice the employer remains responsible for collecting the employer NICs from the employee and...

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