Articles and information in relation to UK Payroll for business, employers and employees.
Pat McFadden: 28th October 2026 I have concluded my statutory annual review of state pension and benefit rates under the Social Security Administration Act 1992. The new rates will apply in the tax year 2027-28 and will mainly come into effect from 12 April 2027. I am pleased to announce that the basic and full … Continue reading State Pension and Benefit Rates 2027-28: Statutory Review
The HM Revenue and Customs (HMRC) have updated the draft guides on Mandating Payrolling Benefits in Kind (MPBiKs) on the evening of Friday 31st July 2026. 31st July 2026 update: The default operation of mandatory payrolling Benefits in kind that come under mandatory payrolling from April 2027 have been listed. Reporting requirements The guidance has … Continue reading Mandating Payrolling of Benefits in Kind (MPBiKs) – July/August 2026 update and the revised draft RTI Data Items
People who have stopped receiving benefits but still refuse to repay money owed to the Department for Work and Pensions (DWP) could be banned from driving under sweeping new powers that have come in. Fraudsters and debtors who refuse to pay face tough new consequences including direct deductions from bank accounts, as new laws come into force. Debtors will begin receiving updated letters from Tuesday 24th June 2026, warning them to get in touch and pay up. This is part … Continue reading Driving bans for those who refuse to repay benefit debts
As part of the Employers Bulletin June 2026, the HMRC is reminding employers on changes and deadlines for PSA reporting. PAYE Settlement Agreement (PSA) — agreements and mailbox closure The deadline for applying for a PAYE Settlement Agreement (PSA) or making any amendments to an existing PSA is 5th July following the first tax year it applies to. For example, … Continue reading PSA deadlines and timing
The HM Revenue and Customs (HMRC) have confirmed a phased approach to the implementation of Payrolling for April 2027 and a further phase in April 2028. Originally it had been proposed to mandate the payrolling of all benefits in kind excepting accommodation and loans, from April 2026. This was then delayed until April 2027. This … Continue reading Payrolling Benefits April 2027 phasing (MPBiKs)
HMRC have indicated that benefits in kind must be payrolled from April 2027. This is being referred to as Mandatory Payrolling Benefits in Kind (MPBiKs). They had already issued two sets of draft documents with more information issued on Monday 15th June 2026 proposing a new phased approach for April 2027 and a further phase … Continue reading Get ready for your 2027 (MPBiKs) Payrolling project
Families face financial penalties when young people take up apprenticeships. A new report from the Social Security Advisory Committee (SSAC) finds that the benefit system is influencing post‑16 choices regarding education and training. The perverse effects risk undermining other government policy aims, in particular to reduce the number of young people not in education, employment … Continue reading Families face age 16 apprenticeship penalty
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%
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%
Largest welfare reforms … to help sick and disabled people who can and have the potential to work into jobs - backed by a £1 billion investment, unveiled by the Work & Pensions Secretary Tuesday 18th March 2025 Work Capability Assessment to be scrapped and “right to try” work guarantee to be introduced Changes to … Continue reading Biggest shake up to welfare system
Universal Credit payments due on Christmas Day and New Year’s Day will be paid on Christmas Eve and New Year’s Eve. Additional support for struggling families also available from the government’s extended Household Support Fund. Part of the Government’s commitment to put more money into people’s pockets through the Plan for Change. Some Universal Credit … Continue reading Universal Credit payments – Christmas 2024 and New Year 2025
Unveiling the biggest reforms to employment support for a generation, Work and Pensions Secretary, Liz Kendall has published the Get Britain Working White Paper, marking the Government’s first major intervention to achieve an ambitious 80 per cent employment rate. White Paper on biggest reforms to employment support for a generation published today, backed by £240 … Continue reading Get Britain Working again
Cold Weather Payments take effect from 1st November 2024 as low-income households set to get £25 during cold snaps. Alongside the £150 Warm Home Discount to support eligible customers with energy bills and extension to Household Support Fund Pensioners urged to check eligibility for Pension Credit to claim the Winter Fuel Payment From 1st November … Continue reading Check your eligibility for winter support schemes
Half a million people claiming old benefits will be invited to claim Universal Credit, unlocking all the work support it offers.DWP Expansion of move to Universal Credit will help 500,000 more people unlock the employment support on offer. Letters will be sent to people on certain benefits notifying them of the action they need to … Continue reading Half a million set to benefit from back to work support
HMRC originally issued updated guidance on the Benefit in Kind treatment of double cab pick-ups on Tuesday 12th February 2024. EIM23150 Car benefit: double cab pickups and the new EIM23151 Car benefit: double cab pickups 1 July 2024 onwards to clarify the new rules which will take effect from 1st July 2024. What is a double cab pickup? A … Continue reading Double cab pickup benefit tax status change cancelled
"to make the tax system simpler and fairer" The government announced Tuesday 16th January 2024 as part of a package of measures that supports its ambition to simplify and modernise parts of the tax system. They claim to be doing this by using the efficiencies of digital service to drive public sector productivity and exploring … Continue reading Compulsory Payrolling of benefits on the table for April 2026
Many employers provide benefits, whether as part of standard reward packages or via flexible reward choice programmes utilising Salary Sacrifice or other Optional Remuneration Arrangements (OpRA). The resulting benefits may have implications for Tax, Class 1 NICs and Class 1A with P11D and P11Db obligations. Many of these arrange,ents have developed over long periods of … Continue reading Want to payroll benefits – plan and register soon for 2024/2025
HMRC are raising awareness of how vehicles should be classified for benefit in kind purposes. On 20th July 2020 the Court of Appeal handed down its decision in respect of appeals by HMRC and Coca-Cola European Partners Great Britain Ltd. The case considered 3 different vehicles and whether they should be classified as vans or … Continue reading Benefits – Classifying Cars versus Vans
The Department for Work & Pensions have confirmed adjustments to the Christmas season related payment date adjustments. If there is a problem the DWP suggest they be contacted. Contact Jobcentre Plus PAYadvce.UK 20/12/2022
The government has confirmed that payments of benefits normally due in accounts on Monday 19th September 2022 will be made early. Those expecting to receive benefits and credits on Monday 19th September 2022 will be paid early Benefits and credits will be paid on Friday 16th September 2022, the last working day before the recently … Continue reading Benefits and credits to be paid early ahead of Her Majesty Queen Elizabeth II’s State Funeral