Legislation updates 2025 for payroll

Originally started in readiness for 2021, PAYadvice.UK are constructing its popular PAYadvice Series Legislation Update 2025 for payroll.

We believe that PAYadvice was the first organisation in the UK to bring together the various resources needed by payroll professional and payroll software developers in preparation for the April 2021 through April 2024 changes, even to the extent of other organisation also republished PAYadvice.UK developed information and even copied PAYadvice.UK table formats within their own publications.

We were bold enough to take the resources that were publicly released and make predictions of values yet to be confirmed. Almost all predictions came to fruition with a few adjustments.

This is a compilation of the indicated and (when) confirmed changes due for 2025 for the United Kingdom, Channel Islands and the Isle of Man, along with proposals and some predictions. As more detail is announced and confirmed, updated versions will be issued.

As announcement are made, the guide will be updated and adjusted.

The following table indicates the current status of whether something is confirmed, waiting or predicted:

Legislation update item	Status
Real Time Information changes	Confirmed
P60, Substitute P60 and Substitue eP60	Confirmed
UK Income Tax Allowance	Confirmed frozen
Rest of the UK Income Tax (England and Northern Ireland)	Confirmed frozen
Scottish Income Tax	Confirmed
Welsh Income Tax	Confirmed
National Insurance	Confirmed
Employment Allowance	Confirmed
Statutory Payments (SSP, SMP, SAP, SPP, ShPP, SPBP, SNCP)	Confirmed
Statutory Neonatal Care Pay (SNCP)	Confirmed
Small Employer Relief compensation rate	Confirmed
Pension and Auto-Enrolment	Confirmed frozen
Student Loans and Postgraduate Loans	Plan 1, 2, 4, 5 & PGL confirmed
National Minimum Wage and National Living Wage	Confirmed
Living Wage and London Living Wage (Voluntary)	Confirmed
Scottish Earnings Arrestments	Confirmed
States of Guernsey Class 1 (1st Jan 2025)	Confirmed
States of Guernsey Minimum Wage (1st Oct 2024)	Confirmed
States of Jersey Social Security (1st Jan 2025)	Confirmed
States of Jersey Minimum Wage	Confirmed
Isle of Man Income Tax	Confirmed
Isle of Man National Insurance	Confirmed
Isle of Man Minimum Wage	Confirmed

For the latest edition: First live edition is coming soon.

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Update history

12/7/2024 Initial under construction page

14/8/2024 – Student loan threshold for Plan 1, 2 and 5 confirmed

26/9/2024 – Real Time Information updates for 2025/2026 confirmed

23/10/2024 – The Real Living Wage and London Living Wage announced

29/10/2024 – The National Minimum Wage and National Living Wage uplifts are announced

30/10/2024 – Autumm Budget 2024 changes to NIC and freeze of Income Tax

13/11/2024 – Student Loan Plan 4 (Scotland) confirmed

14/11/2024 – Statutory payment prediction on the basis of the 1.7% increase. Confirmation of Guernsey minimum wage.

26/11/2024 – Postgraduate Loan Threshold, Statutory Payment rates, Guernsey Class 1 confirmed.

30/11/2024 – Jersey Class 1 confirmed

4/12/2024 – Scottish Income Tax changes proposed

9/12/2024 – P60 RD1 specification published

10/12/2024 – Welsh Rate of Income Tax proposed

21/1/2025 – Pension AE Threshold frozen. IOM Minimum Wage proposed.

28/1/2025 – Small Employers Relief compensation rate increase announced

4/2/2025 – Scottish Earnings Arrestment changes

18/2/2025 – Isle of Man Budget 2025 announced changes to tax and NICs

27/2/2025 – Isle of Man confirm Minimum Wage changes

PAYadvice.UK 12/7/2024 last updated 27/2/2025