What HMRC's April Employer Bulletin Still Means Before the First Full May Payroll Run

The April Employer Bulletin from HMRC isn't just an April news item to file away. For small and medium employers heading into their first full May payroll run, the guidance and reminders issued in that bulletin remain operationally live. Treat it as a practical checklist: tax codes, statutory payments, benefits-in-kind administration and payroll software settings all need attention now, not later.

Why the April bulletin still matters now

HMRC’s employer bulletins typically bundle reminders for the start of the tax year with technical updates that affect routine payroll processing. Even if changes took effect on 6 April, they continue to influence month-on-month payroll activity — particularly for firms that process payroll monthly and run their first full May pay run after a partial April cycle.

Key operational reasons the bulletin remains relevant:

• Tax-code adjustments issued in April can still arrive as employee coding notices after your first pay of the year and need to be applied for the next run.
• Statutory pay and National Insurance thresholds updated for the new tax year continue to determine employee and employer deductions.
• Guidance on statutory sick pay (SSP) handling and SSP recovery processes remains the authoritative reference for employers making claims or reporting on SSP via the EPS.
• Instructions on benefits and expenses, including payrolling benefits-in-kind, affect whether you report via P11D or payroll.

Practical checks before your first full May payroll run

Use this checklist to turn the bulletin’s reminders into payroll-ready actions:

1. Confirm payroll software updates

• Ensure your payroll provider has applied the April tax-year updates. This includes new tax bands, National Insurance thresholds, statutory payment rates and student loan thresholds if changed. Vendors usually push updates automatically, but verify the release notes and the version in use.

2. Review tax code notices and starters/leavers

• Check HMRC coding notices as they can arrive at any point after 6 April. Action required: apply coding notices from the next payroll period and keep a record of the issued notice reference.
• Reconcile starters and leavers against the employer payment schedule and make sure you submit accurate FPS (Full Payment Submission) data for any changes.

3. Check statutory payments and SSP handling

• Confirm the statutory rates in use for SSP, SMP, SAP and SPP for the current tax year. Update payroll entries accordingly.
• If you expect to reclaim SSP (for example, for qualifying periods under current rules), prepare EPS submissions with the correct recovery information. Make sure you understand employer SSP waiting days and any relevant eligibility criteria recorded in the bulletin.

4. Revisit benefits-in-kind administration

• Decide whether to payroll benefits-in-kind (BIK) for affected employees and ensure those taxable amounts are set up correctly. Payrolling benefits can simplify P11D reporting but must be registered with HMRC in advance.
• If you’re still using P11D forms, confirm your records and deadlines (typically early July for P11D submissions and P11D(b) return), and check the bulletin for any technical clarifications on how to value benefits such as company cars, private medical insurance and employer-provided assets.

5. Pension contributions and auto-enrolment

• Verify that employer and employee pension contribution rates and earnings thresholds reflect any tax-year changes that took effect in April. Ensure contributions are calculated on the correct bases and reported accurately to the pension provider.

6. Run a rehearsal payroll

• Do a parallel test run of May payroll figures to highlight unexpected tax-code impacts, missing starter/leaver entries, or benefits misconfigurations. This reduces last-minute corrections that can complicate RTI reporting.

7. Reconcile year-to-date figures

• Compare your payroll software’s year-to-date totals with HMRC records if you have access via the business tax account. Discrepancies are easier to resolve before they become cumulative issues.

Handling SSP and absences: common employer concerns

SSP handling repeatedly appears in HMRC bulletins because sick pay often disrupts payroll flows. Practical points to remember:

• Accurate absence coding matters. Record SSP-related sickness periods correctly in your payroll system and submit the appropriate EPS entries where you’re reclaiming SSP.
• Check whether the bulletin clarifies any temporary or transitional rules — even if those rules were announced in April, they can still affect May payroll processing and ongoing record-keeping.

When to involve your adviser or HMRC

If you find inconsistencies between coding notices and PAYE records, or if you are unsure about SSP eligibility for particular cases, contact HMRC or your payroll adviser sooner rather than later. Waiting until after payroll runs can result in remedial submissions and possible correction demands.

Benefits-in-kind: payrolling vs P11D — which suits small firms?

HMRC encourages payrolling where appropriate because it collects tax on benefits in pay, reducing year-end P11D work. For small firms weighing the choice:

• Payrolling reduces admin if you have straightforward benefit arrangements and you can register employees to be payrolled before the payroll run.
• Keep in mind that some benefits have complex valuation rules — if you operate salary-sacrifice schemes or provide fluctuating benefits, P11D reporting may still be necessary.

Apply the bulletin’s clarifications to your chosen approach and ensure the payroll system applies the correct taxable values.

Practical record-keeping and audit trail

HMRC expects employers to keep clear records of coding notices, P11D elections, Occupational Sick Pay policies, and STP/RTI submissions. Keep digital copies of all HMRC correspondence and document the date you applied any tax-code or benefit changes in your payroll system.

Concluding paragraph

For SMEs, the April Employer Bulletin is best treated as live operational guidance rather than a historical announcement. Use it to verify software configurations, apply coding notices, confirm statutory payment rates and settle your approach to benefits-in-kind before the first full May payroll run. Acting on those points now will reduce correction work later and help keep your PAYE and benefits reporting straightforward and defensible.