HMRC’s 2025 Christmas Warning: 5 Critical Payslip Mistakes Seasonal Workers MUST Check NOW
The festive season is the busiest time of year for temporary employment, but it is also when payroll errors and tax scams peak. As of today, December 19, 2025, HM Revenue and Customs (HMRC) has issued a fresh and urgent warning to the millions of people taking on seasonal roles—from retail and hospitality to logistics—to immediately check their payslips and confirm they are being paid correctly. This annual surge in hiring often leads to rushed payroll setup, resulting in costly mistakes that could see you overpay tax or, worse, be underpaid for your hard work.
The core message from HMRC is simple: 'Check Your Pay.' The warning is particularly critical for those juggling multiple jobs or entering the workforce for the first time, as they are most susceptible to being placed on an incorrect tax code. This detailed guide breaks down the five most common and expensive mistakes seasonal workers must look for before the Christmas period ends.
The 5 Critical Errors Seasonal Workers Find on Their Payslips
The fast-paced nature of Christmas hiring often means employers are onboarding staff quickly, which can lead to administrative oversights. These payroll errors are not minor; they can drastically affect your take-home pay. Here are the most critical mistakes HMRC is urging you to check for on your December 2025 payslip.
1. The Emergency Tax Code Trap (1257L X)
The single biggest issue for new or temporary staff is being placed on an Emergency Tax Code. This usually happens when an employer doesn't receive a P45 from your previous job in time, or if you have started a second job and HMRC hasn't been notified of your multiple sources of income.
- What to look for: Your tax code should generally be 1257L for the 2025/26 tax year. If you see '1257L X', 'W1', or 'M1' next to your code, you are likely on an emergency code.
- The Impact: An emergency tax code often taxes you as if you are not entitled to the full Personal Allowance (£12,570 for 2025/26), meaning you pay too much Income Tax immediately.
- The Fix: Contact your employer’s payroll department immediately. If they cannot resolve it, you must update your details via your Personal Tax Account on the GOV.UK website or by calling HMRC. The overpaid tax will be refunded, but only after the correct information is processed.
2. National Minimum Wage (NMW) and National Living Wage (NLW) Underpayment
HMRC is actively warning that some seasonal employers, particularly in the Retail, Hospitality, and Logistics sectors, may fail to pay the correct minimum wage. This can be due to errors like incorrectly deducting costs or failing to pay for all hours worked.
- What to look for: Check your hourly rate against the current NMW/NLW rates for your age group. Also, look for deductions labelled as 'admin fees' or 'uniform costs' that might illegally drop your pay below the minimum threshold.
- The Impact: You are entitled to be paid for every hour you work, including time spent on training, travel between sites, and working through breaks. Underpayment is illegal and should be reported to HMRC.
3. Incorrect National Insurance Contributions (NICs)
For the 2025/26 tax year, there have been changes to National Insurance Contributions (NICs). Seasonal workers, especially those with short contracts or multiple jobs, must ensure their contributions are calculated correctly.
- What to look for: Check the 'NI Category' letter on your payslip. The most common category is 'A'. If you have multiple jobs, you might be paying too much NICs because each employer is treating you as if you don't have another job.
- The Impact: Paying the wrong NICs can affect your future entitlement to benefits, such as the State Pension or Statutory Sick Pay (SSP). If you suspect an error, you must contact HMRC to ensure your contributions are consolidated correctly.
4. Missing or Incorrect P45/P60 Documentation
When you leave a job, you should receive a P45, which is vital for your new employer to set up your PAYE (Pay As You Earn) tax correctly. Seasonal work often ends abruptly, and workers may forget to secure this document.
- What to look for: If you started a new seasonal job and didn't hand in a P45, you were likely put on an emergency tax code (see point 1). When your seasonal job ends, ensure you receive a P45 from your employer.
- The Impact: If you don't have a P45, your next employer will continue to tax you incorrectly until HMRC updates your records. At the end of the tax year (April 5th), your final employer should issue you a P60, which summarises your total pay and deductions, essential for claiming any overpaid tax back.
5. The Heightened Risk of HMRC Tax Scams
The Christmas period is a prime time for fraudsters. HMRC has issued a specific warning about Phishing Scams, where criminals pose as the tax authority to steal personal and financial information. This is particularly dangerous for those expecting a small tax rebate after a short period of seasonal work.
- What to look for: Be extremely wary of unsolicited emails, texts, or phone calls claiming you are due a Tax Refund or threatening you with immediate legal action or arrest for unpaid tax.
- HMRC’s Policy: HMRC will never contact you out of the blue via email or text message to tell you about a tax refund. They will also never use threatening language or demand immediate payment via unusual methods like gift cards.
- The Fix: If you receive a suspicious email, forward it to phishing@hmrc.gov.uk. If it's a text, forward it to 60599. Do not click on any links or provide any personal details.
Your Action Plan: How to Fix Payslip Errors Immediately
If you have checked your payslip and identified one of the common errors above, the good news is that any overpaid tax is usually recoverable. The key is to act quickly. The longer you wait, the longer it will take to receive a refund.
Step 1: Contact Your Employer’s Payroll Department
In most cases, a simple payroll error, such as a wrong tax code, can be corrected immediately by your employer. They can adjust your code using the Real Time Information (RTI) system. If the error is regarding minimum wage, they are legally obliged to correct the underpayment immediately.
Step 2: Use Your Personal Tax Account (PTA)
If your employer cannot resolve the tax code issue, or if you have multiple jobs, you need to contact HMRC directly. The easiest way is to use your online HMRC Personal Tax Account. Here, you can check and update your tax code for the current 2025/26 tax year, see your estimated income, and check your Personal Allowance.
Step 3: Keep All Documentation
Retain every payslip, your P45 from your previous job, and your P60 from your current employer at the end of the tax year. This documentation is your proof of income and tax paid, which is essential if you need to claim a tax refund later.
Topical Authority Entities for Seasonal Workers (15+ LSI Keywords)
To navigate your rights and responsibilities during your Seasonal Employment, you must understand the key terms and entities involved:
- HM Revenue and Customs (HMRC)
- Pay As You Earn (PAYE)
- National Insurance Contributions (NICs)
- National Minimum Wage (NMW)
- National Living Wage (NLW)
- Personal Allowance
- Tax Code (e.g., 1257L)
- Emergency Tax
- P45 and P60 Forms
- Payroll Compliance
- Phishing Scams
- Tax Year (2025/26)
- Personal Tax Account (PTA)
- Retail Sector
- Hospitality Sector
- Logistics Sector
- Underpayment of Wages
- Zero-Hour Contracts
- Statutory Sick Pay (SSP)
- Umbrella Companies (if applicable)
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