Category: Payroll change April 2025

Electric Company Car Tax increased by a third from April 2026 and more increases for the future

When the New Tax Year day 6th April 2026 arrived, so did a plethora of changes to taxation. For those who have Electric Cars through employer schemes, the company car tax is increasing by a third. A salary sacrifice car is, for taxation purposes, treated as a company car Whether provided as a normal company … Continue reading Electric Company Car Tax increased by a third from April 2026 and more increases for the future →

Where are October 2025 shamed employer minimum pay breaches happening?

The National Minimum Wage (NMW) audit teams from HM Revenue and Customs (HMRC) have caught and fined another 491 employers across the United Kingdom for underpaying their workers for a variety of reasons. Some are well known household brands. Large numbers of employers are struggling to understand their obligations to their workforces to pay them … Continue reading Where are October 2025 shamed employer minimum pay breaches happening? →

NHS not exempt from 15% employers NIC

When the hike in employers National,Insurance was announced and with some subsequent publications and also debate in the House of Commons and Lords, there were expressions of the NHS and potentially other social care groups being exempt from the National Insurance rise to 15%. some indicating that employers NICs would continue at 13.8% for some … Continue reading NHS not exempt from 15% employers NIC →

518 employers named for breaching minimum wage

518 Employers who have left workers over £7.4 million out of pocket by failing to pay the National Living and National Minimum Wage named. More money put into the pockets of hardworking people, as government delivers the biggest upgrade to worker’s rights in a generation, as part of the Plan for Change Workers will be … Continue reading 518 employers named for breaching minimum wage →

NHS workers awarded real terms pay rises

NHS workers, including doctors and nurses, will receive real terms pay rises after the Health Secretary accepted the pay review bodies’ pay recommendations All NHS staff to be awarded above-inflation pay rises for second year in a row to recognises the hard work in rebuilding the NHS The Department of Health and Social Care endorsement … Continue reading NHS workers awarded real terms pay rises →

Operate PAYE on a proportion of a globally mobile employee’s income and changes to Overseas Workday Relief

From 6th April 2025 previous rules for non-domicile status have ended and replaced by a system based on tax residence.    Operating PAYE on a reduced percentage of an employee’s earnings   The process known as Section 690 has changed. This allowed an employer to apply for a direction to only operate PAYE on a proportion of income paid to a … Continue reading Operate PAYE on a proportion of a globally mobile employee’s income and changes to Overseas Workday Relief →

Freeport and Investment Zones – report the postcode on FPS

Freeport and Investment Zone special tax sites — employer National Insurance contributions relief guidance update From 6th April 2025, eligible employers operating in a designated special tax site who wish to claim the employer National Insurance contributions relief will be required to provide the workplace postcode for each eligible employee within the RTI (Real Time Information) Full … Continue reading Freeport and Investment Zones – report the postcode on FPS →

NI letters B, E, I, T – gender and birth date matching (Married Women’s and Widows reduced rate)

Check if you need to amend your payroll for female employees who pay less National Insurance Married women’s and widows’ reduced rate of National Insurance HM Revenue and Customs (HMRC) as part of the April 2025 employer bulletin has provided reminders and further details to guidance to help employers check the eligibility of employees who … Continue reading NI letters B, E, I, T – gender and birth date matching (Married Women’s and Widows reduced rate) →

Has Statutory Sick Pay (SSP) changed?

A number of articles published via a news agencies and news outlets have implied that there were significant changes to the UK statutory sickness scheme from April 2025. However, this is not the case. Period of Incapacity to Work (PIW) Under current rules which continue, only periods of sickness lasting 4 or more calendar days … Continue reading Has Statutory Sick Pay (SSP) changed? →

The National Minimum Wage in 2025 – LPC

On 1st April 2025, minimum wage rates have increased. This short report from the Low Pay Commission looks at the impact of those changes and the change to National Insurance. Increases in all rates of the National Minimum Wage (NMW), including the National Living Wage (NLW), come into effect for pay periods starting on or … Continue reading The National Minimum Wage in 2025 – LPC →

Employment allowance guides updated for April 2025

The HM Revenue and Customs have updated and issued its guidance on claiming the uplifted £10,500 employment allowance which can be offset against qualifying employers Secondary Class 1 Bational Insurance liabilities. For payment from 6th April 2025, employers saw the secondary NIC starting threshold drop to £5,000 and the secondary NIC rate increase to 15%. … Continue reading Employment allowance guides updated for April 2025 →

Electric Company Car Tax increases +50%

As the New Tax Year day 6th April 2025 arrives, so does a plethora of changes to taxation. For those who have Electric Cars through employer schemes, the company car tax is increasing by 50% today. Whether provided as a normal company car or via a car purchase scheme, EV scheme, Salary Sacrifice, or other … Continue reading Electric Company Car Tax increases +50% →

New minimum wage rates for pay periods starting from 1st April 2025

Over 3 million eligible workers are to receive a pay rise of up to £1,400 a year as new National Minimum Wage and National Living Wage rates take effect during April or May. Pay rise worth an extra £1,400 per year for an eligible full-time worker delivered. New rates put more money back into the … Continue reading New minimum wage rates for pay periods starting from 1st April 2025 →

National Insurance Tables published for 2025/2026

With the increase to employers secondary National Insurance to 15% and the lowering of the Secondary Threshold to £5,000 per annum for all payments of wages and earnings from Sunday 6th April 2025, HM Revenue and Customs (HMRC) have published the revised National Insurance Contribution (NIC) tables to be operated. Payroll software will have been … Continue reading National Insurance Tables published for 2025/2026 →

Payroll and the importance of postcodes

UK Postcodes The UK postcode is a combination of between five and seven letters and numbers which define four different levels of geographic unit. It is part of a coding system created and used by the Royal Mail across the United Kingdom for sorting mail. The postcodes are an abbreviated form of address, which enable … Continue reading Payroll and the importance of postcodes →

Loan benefit – rate increases to 3.75%

The Official Rate of Interest (ORI) from 6th April 2025 Where you provide loans to employees that exceed £10,000 during a tax year. If so then the individual has been provided with a benefit in kind (BIK) which is required to be reported on form P11D. Payrolling is planned to become an option for employers … Continue reading Loan benefit – rate increases to 3.75% →

Issue 129 of Agent Update – March 2025

Dear PAYadvice.UK Agent Update: Issue 129 is available now.Get the latest guidance and information including: the Official Rate of Interest Lifetime Allowance (LTA) abolition – lump sum reporting HMRC’s new campaign helps customers 'take the hassle out of their hustle' advanced electronic signatures for R40, P87, and Marriage Allowance transfer claim form (MATCF) print and post … Continue reading Issue 129 of Agent Update – March 2025 →

Taxation of non-UK domiciled individuals change 6th April 2025

The United Kingdom are changing how it taxes non-UK domiciled individuals with new guidance issued by HM Revenue and Customs (HMRC). Out with the old, in with the new From 6‌‌‌th April‌‌‌ 2025, rules for the taxation of non-UK domiciled individuals will end for all new foreign income and gains (FIG). These will be replaced with: an … Continue reading Taxation of non-UK domiciled individuals change 6th April 2025 →

Isle of Man – April 2025 minimum wage rise confirmed

The Isle of Man’s Minimum Wage rates will increase from 1st April 2025, following Tynwald approval at the February sitting, with the Single Hourly Rate increasing to £12.25, and the Youth Rate increasing to £9.55. The Accommodation Offset will remain unchanged. (c) PAYadvice 2025 In addition, the Department for Enterprise (the Department) confirmed that work … Continue reading Isle of Man – April 2025 minimum wage rise confirmed →

Isle of Man – minimum wage rate proposal changed

On 4th February 2025 and following feedback from industry and a range of representatives, the Isle of Man Department for Enterprise (The Department) and Treasury have revised the Minimum Wage proposals originally set out on 17th January 2025. The new proposals will see Tynwald asked to approve a single initial increase to the main rate … Continue reading Isle of Man – minimum wage rate proposal changed →

Isle of Man Budget 2025 changes tax and National Insurance

Treasury Minister Dr Alex Allinson MHK presented his third Isle of Man Budget in Tynwald on Tuesday, 18th February 2025, outlining key measures to support working families, protect businesses, and drive government efficiency. Describing it as a Budget for 'stability, progress, and fairness,' the Minister said it reflects the needs of the community while laying … Continue reading Isle of Man Budget 2025 changes tax and National Insurance →

HMRC starts to issue new tax year 2025/2026 guides and documents

HM Revenue and customs have started to issue guides, tables and documents in readiness for the new tax year starting 6th April 2925. Taxable Pay Tables Taxable pay tables manual method guidance for 2025 to 2026 has been added These tables are used to manually work out Income Tax on pay. CWG2: further guide to … Continue reading HMRC starts to issue new tax year 2025/2026 guides and documents →

February 2025 Employer Bulletin

HMRC have issued the February 2025 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. In this month’s edition of the Employer Bulletin there are important updates and information on: PAYE    end of year reporting employers PAYE and Construction Industry Scheme repayments basic PAYE Tools — new release … Continue reading February 2025 Employer Bulletin →

April 2025 payrise boost to pockets of over 3 million workers

Government lays legislation confirming that the new National Living Wage and new National Minimum Wage will take effect from 1st April 2025 Millions of workers set for significant pay increase in April to improve living standards and drive growth   Pay boost worth £1,400 a year for an eligible full-time worker as Government takes significant step … Continue reading April 2025 payrise boost to pockets of over 3 million workers →

Scottish Earnings Arrestment Change 2025

Photo by Pixabay on Pexels.com Schedule 2 of the Debtors Scotland Act 1987 sets out the amount that can be deducted from an individual's wages when they are subject to diligence against earnings (more commonly referred to as earnings arrestment).  The tables within the schedule have been reviewed and as a result, the Diligence against Earnings … Continue reading Scottish Earnings Arrestment Change 2025 →

Statutory payment small employer compensation increase to 8.5%

HM Revenue and Customs have issued a notification to software developers on Tuesday 28th January 2025 of an increase compensation payment for statutory payments. Apparently HM Treasury had recently consulted on an area of Statutory Payment policy which will impact payroll software. Who they consulted with is not clear and any consideration of developer needs … Continue reading Statutory payment small employer compensation increase to 8.5% →

Payroll Technical Specification – Income Tax

The HM Revenue and Customs (HMRC) have published on 20th January 2025 the 'Specification for PAYE tax table routines' updated to version 23.0 (January 2025). This confirms the parameters and sets out the guidance and calculation rules for payroll software developers in relation to the calculation of Income Tax. Within payroll. Payroll technical specifications: Income … Continue reading Payroll Technical Specification – Income Tax →

Regulations for Neonatal Care Leave and Pay laid

Monday 20th January 2021, the government has laid regulations to implement Neonatal Care Leave and Pay. Subject to parliamentary approval, the regulations will come into force on 6th April 2025. The regulations implement the main provisions of the new entitlement. Specifically:  The Neonatal Care Leave and Miscellaneous Amendments Regulations  implement a new entitlement for employed parents … Continue reading Regulations for Neonatal Care Leave and Pay laid →

Isle of Man minimum wage change proposals 2025

The Isle of Man Tynwald (Parliament) is being asked to approve increases to the Isle of Man’s Minimum Wage at the February 2025 sitting which, if approved, will see the rate achieve parity with the current Living Wage of £13.05 during 2025. The new rates, proposed by both the Department for Enterprise and Treasury, will … Continue reading Isle of Man minimum wage change proposals 2025 →

Torsten Bell appointed Minister for Pensions

Torsten Bell MP has been appointed Parliamentary Secretary in HM Treasury and Parliamentary Under Secretary of State in the Department for Work and Pensions on 14th January 2025 replacing Emma Reynolds, who was promoted following the resignation of Tulip Siddiq. He is the Labour MP for Swansea West, and elected as an MP on 4th July 2024.  He … Continue reading Torsten Bell appointed Minister for Pensions →

Welsh Income Tax April 2025

Income tax is partially devolved to Wales, which means that while the Welsh Government is able to vary the three income tax rates (basic, higher and additional) for Welsh taxpayers4, all other aspects of the tax remain the responsibility of the UK Government, and HMRC continues to administer income tax in Wales. As part of … Continue reading Welsh Income Tax April 2025 →

2025/2026 P60 design

HMRC have issued the RD1 Specification for employers substitute forms P60 for the new 2025/2026 tax year. The RD1 guide gives information on how to design substitute forms P60, ‘End of Year Certificate’ which employers may use at the end of the tax year. It also includes information on how to adapt the substitute form … Continue reading 2025/2026 P60 design →

December 2024 Employer Bulletin

HMRC have issued the December 2024 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. In this month’s edition of the Employer Bulletin there are important updates and information on: PAYE employer National Insurance contributions and Employment Allowance changes announced at Autumn Budget 2024 automatic enrolment … Continue reading December 2024 Employer Bulletin →

Scottish Budget 2025/2026 – Income Tax

Income Tax The Scottish Parliament has the power to set the Income Tax rates and bands for the non‑savings, non‑dividend income of Scottish taxpayers. Responsibility for the remainder of the Income Tax system, which includes all reliefs and exemptions, as well as setting the UK‑wide Personal Allowance and its associated taper rate, are reserved to the UK Parliament. … Continue reading Scottish Budget 2025/2026 – Income Tax →

Apprenticeship Levy and Employment Allowance – connected entities

With the increase in employers National Insurance to 15% and the increased Employment Allowance to £10,500 alongside the removal of the employers £100,000 test, employers will be looking to see how they can reduce their secondary NI liabilities and qualify for the Employment Allowance. The number of enquiries of how to claim especially for multiple … Continue reading Apprenticeship Levy and Employment Allowance – connected entities →

April 2025 Postgraduate loan repayment threshold frozen

As anticipated by PAYadvice.UK, the Department for Education (DfE) and Welsh Government has confirmed (Thursday 14th November 2024) the Postgraduate Income Contingent Student Loans repayment threshold to apply from 6th April 2025. From 6th April 2025 the repayment threshold for Postgraduate loans will continue to be frozen at: £21,000. (c) PAYadvice.UK 2024 Part of Tax … Continue reading April 2025 Postgraduate loan repayment threshold frozen →

Student Loan Plan 4 (Scotland) threshold for April 2025 confirmed

HMRC Software Developers Support Team (SDST) has confirmed (Wednesday 13th November 2024), the student Plan Type 4 (Scotland) threshold applicable from 6th April 2025 The threshold is to rise to: £32,745 The only remaining value to be confirmed is the Postgraduate Threshold, although some may predict that the threshold will again remain frozen.  The thresholds … Continue reading Student Loan Plan 4 (Scotland) threshold for April 2025 confirmed →

Double cab vehicles are cars!

Another blow from the budget to the farming community who rely on these vehicles for their regular work, following a Court of Appeal judgement, the government is to treat double cab pick-up vehicles (DCPUs) with a payload of one tonne or more as cars for certain tax purposes. From 1‌‌‌st April‌‌‌ 2025 for Corporation Tax, … Continue reading Double cab vehicles are cars! →

Veterans employer NI relief extended

As part of the Autumn Budget 2024 announcements, the government has confirmed that it is extending the employer NICs relief for employers hiring qualifying veterans for a further year from 6‌‌‌th April‌‌‌ 2025 until 5‌‌‌th April‌‌‌ 2026. NI letter V to continue for a further year This means that businesses will continue to pay no … Continue reading Veterans employer NI relief extended →

Beneficial loan interest change point revised

As part of the Autumn Budget 2924 changes, the HMRC have confirmed a change to the operation of the Official Rate of Interest which is used when calculating certain benefits in kind and used for form P11D reporting. In-year increases in the official rate of interest (ORI) may take place, where appropriate, from 6th April 2025. … Continue reading Beneficial loan interest change point revised →

Company Car Tax goes up – April 2025

As part of the Autumn Budget 2024 documentation Annex A, the company car tax rates for April 2025 have confirmed a +1% rise from 6th April 2025. For those with Electronic Vehicles (even via salary sacrifice schemes), the company car tax (yes it is a company provided car even via a lease company) applicable rises … Continue reading Company Car Tax goes up – April 2025 →

Autumn Budget 2024 – HMRC

Dear PAYadvice.UK Yesterday [Wednesday 30th October 2024], the Chancellor of the Exchequer, the Rt Hon Rachel Reeves MP, made her Autumn Budget speech and set out the government’s fiscal plans. This [communication] provides you with information on the key measures announced in the Autumn Budget 2024 that will be relevant to you as an agent. Tax related … Continue reading Autumn Budget 2024 – HMRC →

Payroll 2025-26: changes to NICs rates and thresholds and to Employment Allowance

The HMRC SDST has issued the following confirmation information to the software developer community on the changes to National Insurance which apply from 6th April 2025. On 30 October, the Government announced changes to the National Insurance contributions (NICs) Secondary Threshold, Secondary Class 1 rate, an increase in Employment Allowance (EA), and the removal of … Continue reading Payroll 2025-26: changes to NICs rates and thresholds and to Employment Allowance →

Autumn Budget 2024 – Employer National Insurance costs increase

As part of the Autumn Budget 2024, the government have confirmed that employment costs on employers are increasing from 6th April 2025 with: The introduction of a lowered Secondary Threshold reduced from the current £175 per week to around £96 Per week. An increase in the employers National Insurance contribution rate from the current 13.8% … Continue reading Autumn Budget 2024 – Employer National Insurance costs increase →

National Living Wage to increase to £12.21 in April 2025

(c) PAYadvice Ltd 2024 Low Pay Commission recommendations accepted in full The Government has announced Tuesday 29th October 2024 its acceptance of the Low Pay Commission’s (LPC) recommendations on the rates of the National Minimum Wage (NMW), including the National Living Wage (NLW). The rates which will apply from 1st April 2025 are as follows: … Continue reading National Living Wage to increase to £12.21 in April 2025 →

Autumn Budget 2024 – Pay boost for millions with National Minimum Wage increases

Chancellor announces pay rise for over 3 million workers next year, as National Living Wage rises by 6.7%. Chancellor Rachel Reeves announces pay rise for over 3 million workers next year, as National Living Wage rises by 6.7% Pay boost worth £1,400 a year for an eligible full-time worker – a significant move towards delivering … Continue reading Autumn Budget 2024 – Pay boost for millions with National Minimum Wage increases →

Real Living Wage increases to £12.60 in UK and £13.85 in London

Almost half a million people working for more than 15,000 real Living Wage Employers throughout the country are set for a vital cost-of-living pay boost, as the real Living Wage rates rise to £12.60 an hour across the UK (60p or 5% increase), and £13.85 an hour in London (70p or 5.3% increase).  Recent research … Continue reading Real Living Wage increases to £12.60 in UK and £13.85 in London →

PAYE RTI 2025-2026: technical pack published

Issued Wednesday 25th September 2024 Dear PAYadvice.UK,  I am pleased to advise that the 2025-26 RTI technical pack for internet submissions is now available on GOV.UK at Real Time Information support for software developers. Software Developer Support Team HMRC CDIO EPS | Enterprise Integration Services So what are the changes? The changes for the April 2025 tax … Continue reading PAYE RTI 2025-2026: technical pack published →

April 2025 RTI changes latest

The HMRC Software Developers Support Team (SDST) have issued an update on the RTI changes for April 2025. The following is a brief summary based on the information issued: Statutory Neonatal Care Pay (SNCP) As indicated on 3rd June 2024, to support SNCP there will be one new data item in the Full Payment Submission … Continue reading April 2025 RTI changes latest →

Statutory Neonatal Care Pay (SNCP) and Leave – April 2025

HMRC have issued further policy information on the new Statutory Neonatal Care Pay and Leave (SNCP&L, SNCL and SNCP). These new rights apply from 6th April 2025 where a baby needs neonatal care within the 28 days from their birth. The leave and pay entitlements are in addition to any other statutory parental leave and … Continue reading Statutory Neonatal Care Pay (SNCP) and Leave – April 2025 →

Make Work Pay first steps

British workers are set for better working conditions as the Government takes its first steps towards its Plan to Make Work Pay. Businesses and workers are to get a bigger voice at the table as Government takes the next steps in its mission to Make Work Pay Deputy Prime Minister and Business Secretary host senior … Continue reading Make Work Pay first steps →

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 … Continue reading Legislation updates 2025 for payroll →

Student Loan Plan 1 and 2 threshold increases April 2025

The Department for Education on 13th August 2024 confirmed annual updates to repayment thresholds for undergraduate Income Contingent Student Loans. Income Contingent Student Loans for Plan 1 (1998-2012) undergraduate loans The repayment threshold for Plan 1 loans will rise to £26,065 from 6th April 2025 to 5th April 2026. Income Contingent Student Loans for Plan … Continue reading Student Loan Plan 1 and 2 threshold increases April 2025 →

Minimum Wage changes

We’re changing the way the Minimum Wage is set so it keeps in line with the cost of living. What changes are being made to the Minimum Wage? The government are changing the way the Minimum Wage is set so it keeps in line with the cost of living.   For the first time, the Low … Continue reading Minimum Wage changes →

Budget set for 30th October 2024

As part of Chancellors statement on public spending inheritance, Rachel Reeves announced the Autumn budget date. I am announcing today that I will hold a Budget on October 30th alongside a full economic and fiscal forecast from the Office for Budget Responsibility. She went on to state that ‘I have to tell the House that … Continue reading Budget set for 30th October 2024 →

Minimum Wage Revolution – is it about to happen?

As part of the new Labour governments proposed 40 bills which formed part of the Kings Speech delivered on Wednesday 17th July 2024, was the inclusion of proposed changes to National Minimum Wage, forming part of the first 100 days commitment. My Government is committed to making work pay….Kings Speech 2024 The new government has … Continue reading Minimum Wage Revolution – is it about to happen? →

Labour win – payroll and HR impacts

With the Labour party winning with a significant majority and forming a new UK government, changes to employment and payroll law will be easier than experienced by prior governments. Tax and NICs Whilst there is an aim for stabilising the UK economy, Labour promised to not increase existing PAYE income tax rate or National Insurance. … Continue reading Labour win – payroll and HR impacts →

Statutory Neonatal Care Pay (SNCP) is on its way – April 2025

The new statutory allowance (SNCP) is planned to be introduced in April 2025; this is for parents who have a child that requires neonatal care in the first 28 days following birth. Payment is made for a maximum of 12 weeks. This statutory payment is expected to follow the same administration process as other statutory … Continue reading Statutory Neonatal Care Pay (SNCP) is on its way – April 2025 →

National Minimum Wage 2025 – what will it be?

The Low Pay Commission (LPC) has been given the remit for 2025 by the UK government. They have asked the LPC to keep the National Living Wage at two-thirds of median hourly pay. Though the final recommended rate is agreed by Low Pay Commissioners through a negotiated process,  they provide guidance on what kind of … Continue reading National Minimum Wage 2025 – what will it be? →

Mandating postcode provision for Freeports and Investment Zones – April 2025

The government has announced that it intends to bring forward a legislative change to mandate employers operating in a Freeport or Investment Zone special tax site to provide their employee’s workplace postcode to HMRC if they are claiming the relevant secondary Class 1 National Insurance contributions (NICs) relief through their payroll, in due course. The relief is … Continue reading Mandating postcode provision for Freeports and Investment Zones – April 2025 →

HMRC to collect worked hours paid data

The government is legislating to require businesses to change the information they provide to HMRC through Pay As You Earn (PAYE) Real Time Information (RTI) returns completed by employers. The Finance Act 2024 introduced powers to enable the collection of additional data and for HMRC to specify, through Statutory Instruments, the particular information required. The draft regulations published on … Continue reading HMRC to collect worked hours paid data →