Each year the UK and devolved governments announce changes to the rules and values for various statutory deductions and change. These changes generally take effect in April, with the United Kingdom tax year commencing on 6th April. The Payroll Advisory Legislation Service team ran a series of 6 webinar which covered the changes for this next … Continue reading 2026 Payroll Workout – Getting ready for the new tax year and beyond
Category: 2026 Legislation Update
Introduction The following information is to help you ensure that your payroll is kept up to date each month in readiness for finishing the Tax Year. It also gives useful advice on what may cause issues and how to avoid them. Tax Reference Reconciliation Summary The tax reference reconciliation summary outlines the values that are … Continue reading Preparing to Finish the 2025/2026 Tax Year
Following the passing of the Employment Rights Bill and the Royal Ascent of the Employment Rights Act on Thursday 18th December 2025, one of the major changes are the new rights to Statutory Sick Pay (SSP) from Monday 6th April 2026 (Easter Monday). The Statutory Sick Pay measures include: Removing the Lower Earnings Limit to … Continue reading SSP – what is the 80% rate from April 2026?
SSP Transitional Protection Following the passing of the Employment Rights Bill and the Royal Ascent of the Employment Rights Act on Thursday 18th December 2025, one of the major changes are the new rights to Statutory Sick Pay (SSP) from Monday 6th April 2026 (Easter Monday). The Statutory Sick Pay measures include: Removing the Lower … Continue reading Statutory Sick Pay (SSP) Transitional Protection April 2026
The automatic enrollment earnings trigger determines at what point an eligible person gets automatically enrolled into a workplace pension. The qualifying earnings band sets minimum contribution levels for money purchase pension schemes. The minimum of the band is also relevant for defining who can opt in if they earn under the earnings trigger. The government … Continue reading Pension AE – Freeze continues for 2026
As part of the budget 2025, the £12,570 tax free allowance freeze has been extended from the current freeze until April 2028 to a new three year freeze extension to April 2031. This will see an increase in tax income as more individuals through fiscal drag are placed into higher and additional tax rates. The … Continue reading Budget 2025 – Tax free pay freeze extended
The chancellor is ‘asking everyone to make a contribution’. She has confirmed that there will be no changes to Income Tax and National Insurance. This will see an increase in tax income as more individuals through fiscal drag are placed into higher and additional tax rates. The tax rates were confirmed as frozen for the … Continue reading April 2026 rUK Tax (England / Northern Ireland)
As part of budget 2025, Rachel Reeves announced a freeze of National Insurance thresholds and rates until April 2031. Well not everything was frozen, it was after confirmed that the National Insurance Contributions (NICs) Lower Earnings Limit (LEL), the point where individual start accruing state benefit rights, would rise by +£4 to a new £129 … Continue reading April 2026 – National Insurance freeze! Well almost
Following the UK budget on 26th November 2025 which applied a freeze of tax bands and rates, potentially until 5th April 2031, it’s time to catch-up on what is happening with the Welsh Income Tax applicable from 6th April 2026 for the 2026/2027 tax year. As part of the Welsh draft budget preparation announced on … Continue reading April 2026 Welsh Rate of Income Tax
The HMRC Software Developer Support Team have kindly issued the new adjusted HMRC ‘New Starter Checklist’ to software developers to aid preparation for the 2026/2027 tax year. This new format comes into operation for payroll paying from 6th April 2026. Many years ago these were referenced as a P46 and that name continues to sometimes … Continue reading April 2026 Starter Checklist changes
Student Loan deductions The student plan threshold applicable from 6th April 2026 for Plans 1 and 5 were confirmed on Tuesday 19th August 2025. The threshold for Plan 4 (Scotland) was shared by the HMRC CSL Consultation Group on Tuesday 2nd September 2025, and was more formally confirmed by the Scottish Parliament. The Department for … Continue reading April 2026 Student Loan Repayment Thresholds confirmed
I have concluded my statutory annual review of …. benefit rates under the Social Security Administration Act 1992. The new rates will apply in the tax year 2026-27, with most increases coming into effect from 6 April 2026. …. benefit rates covered by my statutory review will be increased by 3.8%, in line with the … Continue reading Statutory Parental Leave Rates for April 2026 confirmed
The government are progressing the Employment Rights Bill through Parliament. Although some elements are being ping ponged between the commons and the Lords, a number of measures are agreed. One such measure is the change to Statutory Sick Pay from 6th April 2026. Statutory Sick Pay Reform As part of a number of initiatives to … Continue reading Day 1 sick pay for all going ahead
I have concluded my statutory annual review of …. benefit rates under the Social Security Administration Act 1992. The new rates will apply in the tax year 2026-27, with most increases coming into effect from 6 April 2026. …. benefit rates covered by my statutory review will be increased by 3.8%, in line with the … Continue reading April 2026 Statutory Sick Pay SSP rate change
The Chancellor of the Exchequer Rachel Reeves has announced on the day before her 26th November 2025 Autumn Budget the acceptance of the Low Pay Commission recommendations on increases to the National Minimum Wage and National Living Wage. These uplifts are predicted in benefit 2.7 million U.K. workers with a significant increase in pay. (c)2025 … Continue reading April 2026 National Minimum and Living Wage
Dear SD Worx and PayHR.UK, HMRC publishes the Employer Bulletin 6 times a year, giving employers and agents the latest information on topics and issues that may affect them. The October edition of Employer Bulletin includes articles on: Making your PAYE Settlement Agreement payment Guidance for labour supply chains featuring umbrella companies New Advisory Electric … Continue reading October 2025 – Employer Bulletin
Half a million workers are set for a pay boost as over 16,000 employers are signed up to pay the real Living Wage, including IKEA, Everton FC and Aviva. Popular high-street retailer Uniqlo is the latest to announce it is joining the Living Wage movement. The real Living Wage is the only UK wage rate independently calculated based on what is needed to cover living … Continue reading 2025 Living Wage and London Living Wage Rates confirmed
At the HMRC Collection of Student Loan (CSL) consultation group,held on Tuesday 2nd September 2025 the following was shared. If has been confirmed that the student Plan Type 4 (Scotland) threshold applicable from 6th April 2026, this information will be additionaly announced at a later point by the Scottish Parliament who have confirmed that there … Continue reading Student Loan Plan 4 (Scotland) threshold for April 2026 confirmed
Dear SD Worx and PayHR.UK, HMRC publishes the Employer Bulletin 6 times a year, giving employers and agents the latest information on topics and issues that may affect them. The August edition of Employer Bulletin includes articles on: P11D and P11D(b) for tax year 2024 to 2025 PAYE Settlement Agreement (PSA) – calculations and payment … Continue reading August 2025 – Employer Bulletin
As part of the August 2025 Employer Bulletin, HMRC have confirmed changes to the raising of charge resolution cases, now referred to as Disputed Charges. Employers PAYE accounts become misbalanced with their payroll records for a number of reasons. Whether duplicates have been applied by HMRC or incorect information has been reported. Sometimes employers inadvertently … Continue reading HMRC Dispute Charge process changed
The Department for Education on 19th August 2025 confirmed annual updates repayment thresholds for Plan 1 and Plan 5 Income Contingent Student Loans. Income Contingent Repayment Student Loans Undergraduate loans Income Contingent Student Loans for Plan 1 (1998-2012) undergraduate loans The repayment threshold for Plan 1 loans will rise to £26,900 from 6 April 2026 to 5 … Continue reading April 2026 – Student Loans Repayment Threshold confirmed for Plan 1 and 5
The UK Government have confirmed that reforms to Statutory Sick Pay will be progressed for sickness absence from Monday 6th April 2026. The governments plan to 'Make Work Pay' is intended to tackle poor pay, poor working conditions and poor job security so that people across the UK feel the benefits. Strengthening Statutory Sick Pay is seen … Continue reading Important Changes to Statutory Sick Pay Effective April 2026
Dear SD Worx and PayHR.UK HMRC have issued the June 2025 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. The June edition of Employer Bulletin includes articles on: PAYE Settlement Agreement calculations 2024 to 2025 organised labour fraud — the supply of labour through Employment … Continue reading June 2025 Employer Bulletin