Articles and information in relation to UK Payroll for business, employers and employees.
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 Budget 2025 – National Insurance freeze!
A new measure is introduced that will affect employers who notify HMRC through a PAYE-notification, often referred to as a Section 690 application, that they will operate Pay As You Earn (PAYE) on a proportion of the employment income of a qualifying new resident employee that will be eligible to claim Overseas Workday Relief (OWR). The … Continue reading Section 690 – Overseas Workday Relief
What are umbrella companies? Umbrella companies are employment intermediaries that employ workers on behalf of agencies and end clients. Many umbrella companies operate diligently, supporting their employees and providing convenience and administrative benefits for agencies. Some appear to be involved in tax avoidance However, too many are used to facilitate non-compliance including tax avoidance and … Continue reading Umbrellas — rules to tackle non-compliance
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 payment rates announced
Billpayers to benefit from an average of £150 off the costs of energy bills. The government have announced in the Autumn Budget that they will cut the cost of living, including by taking an average of £150 off the costs of household energy bills from April next year. This energy bill support is on top of extending the £150 Warm Home Discount to around a further 2.7 million of the poorest … Continue reading Budget 2025 – Energy Bills
Agreement reached with key stakeholders on the unfair dismissal elements of the Employment Rights Bill. The Government convened a series of conversations between trade unions and business representatives. On the basis of the outcome of these discussions, the Government will now move forward on the issue of unfair dismissal protections in the Employment Rights Bill … Continue reading Employment Rights Bill – Dismissal agreement reached
This working paper seeks views on different options to reform non-compete clauses in employment contracts. Non-compete clauses are inserted into employment contracts to restrict an individual’s ability to work for, or establish, a competing business after they have moved on from a job. The government is interested in views on different options to reform non-compete clauses in employment contracts to support the … Continue reading Reform of non-compete clauses in employment contracts
Tax advisers who interact with HMRC on behalf of clients will be legally required to register and meet minimum standards before doing so. This begins in May 2026, with a transitional period of at least 3 months for all tax adviser groups. A digital registration process will be available, with a non-digital alternative for those … Continue reading Tax advisers to register with HMRC and meet minimum standards
Extend employer National Insurance contributions veteran’s relief In April 2021, a National Insurance contributions (NICs) relief for employers that hire former members of the UK regular armed forces was introduced. This brought in an NIC category of ‘V’. The veteran’s relief was due to end on 5th April 2026 but the government have announced that it … Continue reading Budget 2025 – Veterans NIC relief extended
Employees who are required to work from home to perform the duties of their employment are entitled to tax relief on their actual costs under section 336 ITEPA2003. Section 336 ITEPA allows for a deduction from earnings for allowable expenses that meet certain criteria that is set out within legislation. As an administrative easement, HMRC allowed eligible employees … Continue reading Budget 2025 – Working from home relief abolished
Tax avoidance arrangements seeking to avoid Corporation Tax, Income Tax and National Insurance contributions by using unfunded pension arrangements. HMRC is aware of tax avoidance arrangements used by owner managed companies and their directors. These arrangements are used to reward one or more directors for the services they provide to a company, in a way … Continue reading Disguised remuneration: tax avoidance using unfunded pension arrangements
(c)2023 PSP The Department for Education… (26th November 2025) confirmed annual updates to repayment thresholds for Plan 2 and Plan 3 [Postgraduate] Income Contingent Student Loans. Income Contingent Student Loans for Plan 2 (2012-2023) undergraduate loans The income threshold and the lower interest rate threshold for repayment of Plan 2 loans to apply from April … Continue reading Student Loans Repayment Threshold Announcement for Plan 2 and Post Graduate loans for April 2026
The independent loan charge review and government response were published Wednesday 26th November 2025 following Budget 2025. At Autumn Budget 2024, the government committed to an independent review of the Loan Charge to help bring the matter to a close for those affected whilst ensuring fairness for all taxpayers. On 23rd January 2025, the Exchequer … Continue reading Independent Loan Charge review and response
Budget 2025 speech as delivered by Chancellor Rachel Reeves - 26th November 2025 Madame Deputy Speaker. It is my understanding that the Office for Budget Responsibility’s Economic and Fiscal Outlook was released on their website before this statement. This is deeply disappointing and a serious error on their part. The Office for Budget Responsibility has … Continue reading Budget 2025 speech
It’s the kids that have paid the price As part of the Budget 2025, the chancellor Rachel Reeves stated that she came into politics because every child ‘deserves an equal chance’. Fully costed and fully funded, the Two child benefit cap has been scrapped from April 2026. This is claimed to be ‘the biggest reduction … Continue reading Budget 2025 – Two Child Benefit limit removed April 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 allowance freeze extended 3 years
As part of the Budget 2025, changes are being progressed with ISAs. The annual limit will remain at £20,000 but with a new requirement for those under 65, for £8,000 of that to relate to investments. For those who have reached 65, the full ISA £20,000 amount may continue to be put into a cash … Continue reading Budget 2025 – ISA changes announced
As part of budget 2025, the Chancellor of the Exchequer Rachel Reeves has announced that earnings sacrificed for increased employer pension contributions will now be subject to National Insurance contributions. Any contributions over an annual £2,000 threshold will be subject to NIC from April 2029. So no immediate impact but significant change for employers to … Continue reading Budget 2025 – Pension Salary Sacrifice to be subject to National Insurance April 2029
The Red Budget Box According to information published by Parliament, the word Budget comes from an old French word ‘bougette’ meaning little bag. It was customary to bring the statement on financial policy to the House of Commons in a leather bag. The modern equivalent of the bag is the red despatch box or Budget … Continue reading Budget 2025 – The Red Box
As the festive season approaches, many businesses rely on staff working longer hours, picking up extra shifts or staying late to meet demand. But are your clients confident they’re paying them correctly? Join HMRC’s National Minimum Wage (NMW) team, for a live webinar designed to help employers and their payroll advisers to understand what counts … Continue reading Extra Christmas working hours and minimum pay
Polling shows more than half of young people do not feel there is enough government support to help them get decent entry-level jobs This rises to more than two thirds of young disabled people and 60 per cent of young people from working-class backgrounds NEET figures show almost one million young people aged 16-24 are … Continue reading Not enough support to land decent entry-level jobs for young people
(c)2025 PAYadvice Ltd 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 … Continue reading April 2026 National Minimum and Living Wage increases confirmed
From 1st January 2026 if you provide cryptoasset services in the UK, you’ll have new responsibilities for collecting data and reporting it to HMRC. Failing to provide accurate info could mean a penalty, additional fines, and account restrictions. ❌ This is because the UK is introducing the Organisation for Economic Development (OECD) Cryptoasset Reporting Framework … Continue reading New Cryptoasset reporting rules – Jan 2026
Boiler Upgrade Scheme has been expanded to include air-to-air heat pumps and heat batteries giving families more choice in how they upgrade their home. Government expands successful heat pump scheme to technology that keeps homes warm in winter and cool in summer Heat batteries also included in expansion of Boiler Upgrade Scheme giving consumers more … Continue reading Discounts for families to keep warm in winter and cool in summer
Vulnerable claimants moved to Universal Credit with specialist help, as Government puts those who need it most at heart of delivery Over 9 in 10 Employment and Support Allowance [ESA] customers invited to move now on modern benefit system as historic transformation nears completion Minister for Social Security and Disability encourages people to make the … Continue reading 220,000 vulnerable claimants given personalised support to move to Universal Credit
Digital posters and leaflets are now available in three additional languages for regulated organisations, ambassadors, and charities to download and share. The Immigration Advice Authority (IAA) has updated its range of promotional materials to help advice seekers understand why regulated immigration advice matters, the risks of unregulated advice, and how to report poor or illegal … Continue reading New Resources to tackle unregulated immigration advice
The Government’s Make Work Pay plan is designed to help more people to stay in work, support workers’ productivity and improve living standards. One of the first significant delivery vehicles for this plan is the Employment Rights Bill which will introduce new legislation. Once implemented, it will represent the biggest upgrade in employment rights for … Continue reading Know your Rights – Good Employment Week 2025
From February 2026, visitors will not be able to travel to the UK without advance permission. Visitors from 85 nationalities, including the United States, Canada, and France, who do not need a visa will not be able to legally travel to the UK without an Electronic Travel Authorisation (ETA) from 25th February 2026. This is … Continue reading UK to enforce ETA scheme Feb 2026
Good Employment Week 2025 Good Employment Week is an annual week of activities, that aims to raise awareness of good employment across city-regions. Developed by the Greater Manchester Good Employment Charter, this year the Mayor's Good Work Standard are celebrating Good Employment Week in London with a range of events and social media campaigns: The Conflict … Continue reading Good employment week 24-28 November 2025
The Serious Fraud Office (SFO) launches first major cryptocurrency investigation into suspected fraud. The Serious Fraud Office (SFO) (20th November 2025) have issued an appeal for investors to come forward with any information they hold about the collapse of a $28 million cryptocurrency scheme called Basis Markets. The SFO launched an investigation into the suspected fraudulent scheme with two raids in West Yorkshire … Continue reading Investigation into $28 million crypto scheme
The Home Secretary's statement setting out significant reforms to the UK’s legal migration model. Oral statement to Parliament 20th November 2025 Madam Deputy Speaker, with your permission I will make a statement on a fairer pathway to settlement for migrants. The story of migration in this country is woven through my own. My father came … Continue reading A fairer pathway to UK settlement
The Chancellor is extending the freeze on NHS prescription charges next year to keep prescriptions under a tenner, saving patients around £12 million next year. Rachel Reeves announces cost of a single prescription will remain at £9.90, as she takes firm action to tackle the cost of living ahead of the Budget The move is claimed to be further evidence … Continue reading Prescription charges frozen
Rail fares frozen for the first time in 30 years in historic intervention to deliver real savings for millions of commuters. The move from the Chancellor and Transport Secretary is to keep household costs down for hardworking families and drive economic growth by limiting inflation by keeping travel costs down. No price increases for fares … Continue reading First rail freeze in 30 years to help commuters
HMRC is aware that businesses are being approached by organisations offering models which falsely claim to be able to reduce employment costs through ‘tax credits’ offset from third party businesses they have acquired. HMRC considers these arrangements tax evasion. HMRC is aware that businesses are being approached by organisations offering models which falsely claim to be able to reduce … Continue reading Tax fraud warning for employment agencies and employers
Side hustlers selling festive items need to tell HM Revenue and Customs (HMRC) online if earnings exceed £1,000 a year. HMRC’s Help for Hustles campaign supports people earning extra income during festive season to understand tax obligations. Online checker tool can clarify if and when side hustlers need to report their additional income. People making … Continue reading Christmas crafters – check the tax rules
Nine million pensioners are to benefit from vital support for energy costs during the colder months as Winter Fuel Payments start hitting bank accounts Nine million pensioners will benefit from Winter Fuel Payments Payments will be made automatically from now until the end of December 2025 DWP warns of surge in Winter Fuel Payment scams Pensioners … Continue reading Millions of pensioners to receive Winter Fuel Payments
Renters' Rights Act will kick in from 1 May 2026, benefitting 11 million renters across England. Countdown begins for the biggest increase to tenants’ rights in a generation New protections will also end in-year rent rises, bidding wars and discrimination against families receiving benefits Clear timeline will support landlords and letting agents to prepare for … Continue reading No-fault evictions to end by May 2026
60 major and many small employers are joining forces with government to tackle the rising tide of ill-health that is pushing people out of work Employers join forces with government to tackle ill-health and keep Britain working Employers and mayoral authorities back plans to support employees to keep people healthy and in work. A three-year partnership, led … Continue reading Tackling ill-health and keep Britain working