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
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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
For the third year running, Christmas Day and New Year’s Day don’t fall on weekends and there are no substitute days. However, this year Scotland has a substitute day for St Andrews. England and Wales So when are the Christmas and New Year Bank holidays? For England Wales and Northern Ireland matches: Scotland In Scotland … Continue reading Christmas 2025 and New Year 2026 – when are the Bank Holidays and what about paying early?
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
The government is taking steps to simplify and modernize parts of the tax system. They plan to use digital services to increase public sector productivity and are looking for more ways to make the tax system simpler and fairer. PALS Request Form – UK Knowledge for Pay and HR Mandating the payrolling of benefits in … Continue reading Get ready to payroll benefits
The House of Commons committee has published its new report on the Employment Rights Bill, with additional announcements anticipated later today. The Fair Work Agency, which is set to enforce labour market compliance will need “strong powers to inspect workplaces and take action against exploitation,” as well as the ability to bring civil proceedings to … Continue reading Superficial Official?
With the upcoming rise in Employers National Insurance in April, salary sacrifice schemes are poised to become increasingly attractive for employers. However, these schemes come with hidden complexities that need careful consideration. Below we explore the pros and cons of salary sacrifice: Pros: Starting in April, employers can save up to £15 for every £100 through salary … Continue reading Worth the Sacrifice?
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 2024/2025 Tax Year
HM Treasury has recently consulted on changes to Statutory Payment policies that will impact payroll software and employer reimbursements. These changes are set to take effect from 6 April 2025 and will bring significant updates to the compensation rates for various statutory payments. Current Reimbursement Rates Currently, employers can reclaim 92% of the following statutory … Continue reading Statutory Rate Shake-up
The UK government has announced that employers will no longer be required to provide more detailed employee hours data through Pay As You Earn (PAYE) Real Time Information (RTI) returns from April 2026. This decision follows feedback from businesses, which highlighted the potential administrative burden of the proposed changes. The draft Income Tax (Pay As … Continue reading Record time gone in record time
The calculation The UK Living Wage for outside of London has been announced on Wednesday 22nd October 2025 as £13.45 per hour. The London Living Wage as £14.80 per hour. This covers all boroughs in Greater London. The rates are calculated annually by the Living Wage Foundation and overseen by the Living Wage Commission, based on the best available evidence about … Continue reading How SD Worx Supports Real Living Wage Implementation
The Employment Rights Bill is currently headed through parliament and set to change holiday pay in 2026. We recommend that employers check their holiday pay scheme compliance now before it is too late. What is set to change? The Bill introduces a new agency, the 'Fair Work Agency' (FWA), with a remit which includes investigating … Continue reading Make way for Holiday Pay
The Bank of England’s Monetary Policy Committee has announced a reduction in the base rate from 5.0% to 4.75% as of 7 November 2024. Consequently, HMRC will adjust its interest rates for late payments and repayments. Key Changes: Effective Dates: Quarterly Instalment Payments: New rates apply from 18 November 2024. Non-Quarterly Instalment Payments: New rates apply from … Continue reading HMRC Rate Cut
The government plans significant investments in the NHS, living standards, infrastructure, and business support while implementing tax reforms to enhance economic stability.
The recent UK budget, presented by Chancellor Rachel Reeves, introduces significant changes to employers’ National Insurance contributions. Here are the key points: Increase in Contribution Rate From April 2025, the rate of employers’ National Insurance contributions will rise from 13.8% to 15%. This increase is part of a broader strategy to raise additional revenue for … Continue reading Employer’s NI rise
The UK Government will raise the National Living Wage to £12.21 per hour from April 2025, following Low Pay Commission recommendations. Rates will also increase for younger workers and apprentices. This move aims to align wages with median earnings, promote economic growth, and enhance the financial well-being of low-paid workers.
The new Employment Rights Bill introduced today aims to boost economic security and growth across the UK by addressing key issues in the labour market. Here are some of the main points: Unfair Dismissal Protections: The two-year qualifying period for protection from unfair dismissal will be removed, giving all workers these rights from day one. … Continue reading Employment Rights Bill: Job Done?
Laws to ensure workers keep all of their hard-earned tips comes into effect Changes expected to boost wages by putting £200 million back in the pockets of workers Comes ahead of employment rights bill which will go further to strengthen workers’ rights and make work pay From 1st October, workers across various industries shall benefit … Continue reading Tipping the balance
Reports have come out that Chancellor Rachel Reeves is to tone down the 'doom and gloom' messaging of the 30th October budget. However, with a proclaimed £22 billion budget deficit left by the previous government, there is likely little room for manoeuvre. Join the PALS team on the 1st November for our free Preparing for … Continue reading Reeves’ Squeeze?
The Employment Tribunal has upheld an employee's disability discrimination claim that a previously served resignation should be subsequently rescinded at their request. Mrs Bradley worked in a senior position at the Royal Mint and was displeased with her level of remuneration. She served notice of her resignation, which was accepted and then publicly announced. The … Continue reading Impulsive Resignation and Disability Discrimination: Lessons for Employers
With three English bank holidays left this year, check out our guide to bank holidays below. Does a bank holiday mean individuals can have the day off work? This is a matter for discussion between individuals and their employer. There is no statutory entitlement to time off for bank holidays, but employers may include bank … Continue reading Bank Holiday FAQ – Check your contracts
Lees of Scotland Ltd, the confectionery producer of teacakes, meringues and snowballs, has lost an Employment Appeal Tribunal decision in relation to National Minimum Wage (NMW). Lees had provided workers with a voluntary holiday savings scheme over 30 years, it operated a “holiday fund”, where workers could choose to have a regular sum deducted from … Continue reading Have your cake and eat it?
The new government has indicated that as part of it ‘Make Work Pay’ – ‘And through our changes to the Low Pay Commission, we’ll make sure the minimum wage is a genuine living wage’. There is also a commitment to remove what some may see as an age discrimination by removing age differentials. National Minimum Wage … Continue reading Wage before age?
Emma Hand, our legal intern, has conducted a comprehensive review of Labour's policies, providing insights into the potential trajectory of workers' rights in the coming months. Below is a summary of their findings, offering clarity on the implications for the workforce: What are Labour’s policies around worker’s rights? In the past, Labour have been known … Continue reading Correcting the balance?
Following Labour’s win in the General Election, the King has delivered a speech to the nation to mark the beginning of a new political session. The purpose of the speech is to reveal the new government's agenda and to address new policies that will be worked on by them. Delivery is always in a ‘neutral’ tone, to maintain the apolitical nature of the monarch.
The government delivered over 35 proposed bill as part of the Kings Speech 2024. "My Government is committed to making work pay and will legislate to introduce a new deal for working people to ban exploitative practices and enhance employment rights" [Employment Rights Bill] Make work pay So what does the Kings speech mean … Continue reading Kings Speech – New employment rights proposed
The new Labour government plans to introduce changes, including a universal minimum wage, fair work agency, and trade union updates.
HMRC has sent GEN notifications to employers regarding National Minimum Wage - NMW. If you have an NMW issue, you must act now. Use our Q&A below to assess your NMW situation: Do you pay exactly (or close to) the NMW rate to your employees? By paying exactly the NMW rate, you are operating at … Continue reading Have you received an HMRC Minimum Wage GEN notification?
Are you looking for a reliable and experienced professionals to handle your employment law & HR needs? SD Worx has partnered with JMA HR & Legal Ltd, who have a team of qualified and dedicated lawyers who can help you with any employment and HR issues, from contracts and policies to disputes and litigation. If … Continue reading April Employment Changes – A message from our partner
On the 6th March, the Chancellor of the Exchequer Jeremy Hunt announced the March 2024 Budget. In line with predictions, National Insurance will be reduced by 2% from April. See the main points below: Employee National Insurance tax cut from 10% to 8% in April for 27 million working people. 2 million self-employed also get … Continue reading March 2024 Budget