Articles and information in relation to UK Payroll for business, employers and employees.
If you provide payroll or PAYE services and communicate with HMRC on behalf of clients as part of your business, you may need to register under HMRC’s mandatory tax adviser registration requirements. The registration window for payroll agents opens on 18th November 2026. You do not need to register yet, but now is a good … Continue reading Mandatory tax adviser registration for payroll agents opens 18th November 2026
Budget 2026 announced that the government will introduce legislation in Finance Bill 2026-27 to make changes to the Company Share Option Plan (CSOP) and Enterprise Management Incentives (EMI) schemes. The CSOP individual option limit will be increased to £120,000 (previously £60,000). The interaction between the CSOP and EMI individual options limits will be removed. The CSOP exercise period will be extended to 15 … Continue reading Budget 2026 – Changes to Employee Share Schemes
Income Tax (England and Northern Ireland) Income tax rates and rate limits for Scottish taxpayers are set by the Scottish Parliament. The UK rates are reduced by 10p in £1 for Welsh taxpayers, and the Welsh rates of income tax are set by the Senedd and added to the UK rates. Income tax for England and Northern Ireland remain … Continue reading Budget 2026 – Tax and National Insurance – limited to no payroll change
As part of the Budget 2026 announcements, the government is increasing the van benefit charge and the car and van fuel benefit charges in line with the September 2026 Consumer Prices Index (CPI). The original announcement appears to have confused amounts between the different charges. PAYadvice.UK have reviewed and amended to what is more likely … Continue reading Budget 2026 / Payrolling 2027 – Annual Uprating of the Van Benefit Charge for 2027-2028 and the Car and Van Fuel Benefit Charges for 2027-2028
Employers are being reminded that for the HMRC payment for November 2026, the electronic payment deadline falls on Sunday 22nd November 2026. Employers who pay via BACs or other payment methods which do not transact on weekends need to make sure their payment for the October 2026 (6th October through 5th November 2026) tax month … Continue reading Pay HMRC on-time
Payroll compliance rarely comes down to one person. But when the rules change, the questions multiply, and the pressure is on, having the right answers matters. On the latest episode of Payroll Question Time, Steve Yardley is joined by Mathew Akrigg MCIPPdip MAAT, Jeni Morris - NMW Specialist, Karen Thomson ChFCIPP MSc FHEA Dip, P … Continue reading Payroll Question Time – Payroll Podcast
If you, as an employer, provide any of the mandated benefits, including those offered via salary sacrifice or other Optional Remuneration Arrangements (OpRA) being: Company Cars including salary sacrifice cars Car fuel Company Vans Van fuel Medical benefits Then you need to start your Payrolling plans now. Does mandation affect those who have voluntarily payrolled … Continue reading Payrolling 2027 – it’s time to get ready
HMRC provide new guidance on errors HMRC have issued new promotional information on help to prevent RTI errors on HMRC systems. Although they state it as ‘Help to prevent payroll errors’, often there are no errors in the payroll yet the employers account at HMRC does not balance leading to what may be termed a … Continue reading HMRC – Help to prevent payroll errors and PAYE RTI disputed charges — GfC22
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 the Employer Bulletin brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. The October 2026 edition of Employer Bulletin includes articles on: PAYE Payrolling … Continue reading Employer Bulletin: October 2026
Voluntary registration for non-mandatory payrolling of benefits in kind HMRC have confirmed that from November 2026, employers can register to voluntarily payroll non-mandated benefits for the 2027 to 2028 tax year, using the payrolling benefits and expenses online service. Class 1A applies to voluntary Payrolling From 6th April 2027, employers who voluntarily choose to payroll … Continue reading Payrolling 2027 – non-mandated benefit registration
The HMRC Software Developers Support team have provided some further detail for developers in relation to the BIK Class 1A National Insurance Contributions (NICs) rounding rules as part of the MPBiKs measure. These rounding rules will apply to all payrolled benefits in kind which attract Class 1A from 6th April 2027 and align with the existing Class … Continue reading Payrolling 2027 – BIK Class 1A calculation rounding
Originally started in readiness for 2021, PAYadvice.UK are constructing its popular PAYadvice Series Legislation Update 2027 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 2026 changes, even to … Continue reading Legislation updates 2027 for payroll
The government has now confirmed that Employers will have the option to voluntarily except Globally Mobile Employees (GMEs) from mandatory payrolling from 6th April 2027. In these cases, employers may continue to use existing year-end reporting arrangements through forms P11D and P11D(b). HMRC indicate that this will be managed through a separate exception process. What are … Continue reading Payrolling 2027 – Globally Mobile Employees can be exempted
Another piece of the mandatory payrolling changes is confirmed by the government: From 6th April 2027 the position on applying real time Class 1A calculation in year is to be applied to all benefits in kind that have been payrolled. April 2027 brings into play two different payrolled benefit treatments: Mandatory Payrolling (excepting globally mobile … Continue reading Payrolling 2027 – Class 1A to apply to both mandatory and voluntary items
HM Revenue and Customs is encouraging people to check their State Pension forecast using the HMRC app during Pension Awareness Week. Research shows 45 to 54-year-olds are more likely than any other age group to have never checked their State Pension, despite it being a key time for retirement planning. One in eight adults have … Continue reading 7 million in the dark about their State Pension
Around £4 million has been repaid to 27,000 workers. Latest list of employers who have underpaid workers revealed as Government hands enforcement powers to new dedicated body. 658 employers named for failing to pay staff the National Minimum Wage, with £4 million returned directly to workers. Thousands of workers given more room to breathe as … Continue reading 658 employers shamed for illegally “Short-changing staff”
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 the Employer Bulletin brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. The August 2026 edition of Employer Bulletin includes articles on: PAYE Tax … Continue reading Employer Bulletin: August 2026
HMRC has opened the second phase of mandatory tax adviser registration, with eligible advisers required to register by 18th November 2026. Phase two of the new online registration requirement for tax advisers rolls out. Advisers with Self Assessment or Corporation Tax accounts, but without an agent services account (ASA), now need to register. Advisers who … Continue reading Second tax adviser registration window now open
Get ready for mandatory payrolling of benefits in kind (BiKs) For employers who offer any of the mandatory benefits: Cars and Fuel Medical benefits Vans and Fuel It is important that employers start planning on both the payroll implementation aspects and how they will obtain and apply the required benefit data from their benefit providers. … Continue reading Payrolling Benefits and registration
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
HMRC is urging those who receive a Simple Assessment letter this summer to check it carefully and pay any tax owed by the deadline. HMRC will send Simple Assessment letters for the 2025 to 2026 tax year this summer. The letters are sent to those who have tax to pay on income that has not been … Continue reading Do not to ignore Simple Assessment letters
You may be able to claim tax relief if you use cars, vans, motorcycles or bicycles for work. This does not include travelling to and from your work, unless it’s a temporary place of work. How much you can claim depends on whether you’re using: a vehicle that you’ve bought or leased with your own … Continue reading Claim tax relief for your job expenses – Vehicles you use for work
The Prime Minister has launched the biggest transfer of power from Westminster in a generation, giving communities greater control over the decisions that shape jobs, transport, housing and public services in their area. Biggest transfer of power, funding and responsibility from Westminster in a generation Mayors to keep a share of income tax and business … Continue reading Prime Minister Burnham to hand mayors a share of income tax
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
The Chancellor has confirmed that the date of the Budget will be Wednesday 28 October 2026. In a video message, the Chancellor of the Exchequer, John Healey MP said: This government is working fast to restore hope and back Britain’s communities. In the past two weeks, we have begun to kickstart growth in every postcode. We … Continue reading Budget to move “power and money out of Westminster, and into every postcode
The estimated provisional UK tax gap for the 2024 to 2025 tax year is 6.4% or £59.2 billion. The largest share of the 2024 to 2025 tax gap estimate is from small businesses’ non-compliance. The government has already announced plans to raise a further £10 billion a year by 2029 to 2030 through its measures … Continue reading Tax Gap 2024-25 at 6.4%
Correction to some Plan 2 student loan balances. The Student Loans Company (SLC) is contacting some Plan 2 repayment employees about corrections to their balances. Around 71,000 (approximately 1.3% of current Plan 2 debts) have been affected by technical issues. SLC and HM Revenue and Customs (HMRC) are very sorry that this happened. Those affected … Continue reading The Student Loans Company (SLC) is contacting some Plan 2 customers about corrections to their balances
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
It’s that time of year to get ready to pay the Class 1A 15% charge on benefits for the 2025/2026 tax year Class 1A on benefits is not currently part of the payroll operation of PAYE. The realtime payroll related Class 1A capabilities currently present relate only to termination payments and sporting testimonials. P11D(b) Employers … Continue reading Get ready to pay Class 1A for benefits
As part of the employers bulletin June 2026 articles, the HM Revenue and Customs (HMRC) has issued information on the Low Earners Pension Payment (LEPP). Contact imminent From August 2026, HMRC will be contacting around 1 million eligible individuals directly about the low earner’s pension payment, previously referred to as the low earner’s anomaly. This … Continue reading Low earner’s pension payment
As part of the HMRC June 2026 Employer Bulletin, there is an article that highlights that the Low Incomes Tax Reform Group (LITRG) made HMRC aware of an error in the August 2023 issue of the employer bulletin and a corrected reissued article. Tax relief on employee contributions to registered pension schemes The text below is based on a replacement for … Continue reading Pension tax relief – still getting it wrong
HMRC publishes the Employer Bulletin 6 times a year, giving employers and agents the latest information on topics and issues that may affect them. Some of these topics have already been covered by PAYadvice.UK in articles and blogs and further articles and blogs may now additionally be published. The June 2026 edition of Employer Bulletin … Continue reading Employer Bulletin: June 2026
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)
Company Cars and Vans are are part of mandatory Payrolling On Monday 15th June, HMRC have confirmed a simplification to their original Payrolling mandation (MPBiKS) by phasing its introduction. So what does that mean for April 2027 preparation. It has been confirmed that mandatory Payrolling of benefits and introduction of Class 1A applies to: Company … Continue reading Payrolling 2027 (MPBiKs) – mandatory items confirmed
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
HMRC crackdown targets criminals exploiting the high street. HMRC will carry out more than 30,000 interventions this year to tackle tax fraud and illegal activity on the high street. Action targets organised crime groups and others exploiting vape shops, barbers and convenience stores in hotspot areas. HM Revenue and Customs (HMRC) made unannounced visits to six … Continue reading Dodgy shops: “We are coming for you”
HM Revenue and Customs (HMRC) has seen an increase in attempts to use ‘Bills of Exchange’ to pay a tax liability. HMRC are aware that there are promoters, particularly in the recruitment and temporary labour sector, marketing their use. Organised Crime Groups are also particularly active in these sectors. HMRC have set out their position … Continue reading Tax fraud warning: ‘Bills of Exchange’
From Monday 18th May 2026, a new registration requirement for tax advisers will roll out. New mandatory tax adviser registration requirements is claimed to protect customers and raise standards in tax advice. Online registration will roll out in stages between 18th May 2026 and 31st March 2027. Registration is free, and step-by-step guidance is available … Continue reading Check if you need to register as a Tax adviser – that includes payroll
HM Revenue and Customs (HMRC) are indicating that they are aware of concerns raised by representative bodies about tax payers receiving Self Assessment (SA) notices to file linked to savings income, and in some cases receiving multiple or conflicting HMRC letters. HMRC indicate that they recognise that this has caused confusion and concern, and apologise. What happened? … Continue reading Self Assessment confusion: Bank and Building Society Interest
As part of the HMRC April 2026 Employers Bulletin, the HMRC are again blaming employers for problems with the HMRC RTI system. Employers create duplicate employments! They state that: Employers continue to create duplicate employments when a payroll ID is changed but the payroll ID change indicator is not used. This typically occurs when the … Continue reading RTI submission problems — incorrect handling of payroll ID
HMRC publishes the Employer Bulletin 6 times a year, giving employers and agents the latest information on topics and issues that may affect them. Some of these topics have already been covered by PAYadvice.UK in articles and blogs and further articles and blogs may now additionally be published. The April 2026 edition of Employer Bulletin … Continue reading Employer Bulletin: April 2026
Winter Fuel Payments paid in winter 2025 will be recovered from pensioners with income above £35,000 Check if your payment will be reclaimed at GOV.UK - you don’t need to contact HM Revenue and Customs (HMRC) Scammers may try to trick customers into handing money over Pensioners are being warned to be on high alert for scams … Continue reading Winter Fuel Payment scams targeting pensioners
Statutory Sick Pay: record sheet (SSP2) has been updated to reflect changes brought in by the Employment Rights Act 2025, to remove the waiting period before SSP can be made. Employers can use form SSP2 to record details of an employee’s sickness absences for Statutory Sick Pay (SSP) and monitor the use of the 28 … Continue reading Statutory Sick Pay record sheet update
The HMRC Software Developers Support Team (SDST) have notified software developers on a difference in this year Department for Work and Pensions (DWP) uprating order to prior practice and original expectations. Under a notice issued to developers ‘Payroll 2026-27: Correction to uprating dates for certain Statutory Parental Pay entitlements’, the SDST have provided the following: … Continue reading Statutory Payments uprating error
Here it is again, the start of a New Tax Year. Often when meeting with payroll and tax professionals from overseas, they wonder why the United Kingdom tax year commences on 6th April annually. Why is that when so many countries around the world celebrate both the new year and the tax year on 1st … Continue reading Happy New (Tax) Year 2026
(c)2025 PAYadvice Ltd New minimum wage rates come into force [for pay reference period starting{ from 1st April [2026], following Low Pay Commission recommendations. Increased rates of the National Minimum Wage, including the National Living wage came into force for pay reference period from 1st April 2026. These rates bring into effect recommendations made by the … Continue reading National Living Wage rises to £12.71
Families encouraged to use Tax-Free Childcare to save thousands on their childcare bills. Working families encouraged to cut the cost of Easter childcare by signing up to Tax-Free Childcare Latest figures show 542,700 families saved on their childcare bills in December 2025 More than £46 million in government cash helped with childcare costs for almost … Continue reading Save on Easter childcare egg-spenses with Tax-Free Childcare
Millions of drivers who claim motoring expenses could benefit from a review of approved mileage rates. Millions of drivers who claim motoring expenses from their employer will see approved mileage rates reviewed ahead of a future Budget. Approved mileage allowance payment rates have not changed since 2011, despite motoring costs evolving significantly. Part of a plan to help keep prices down … Continue reading Mileage rates review to support working people
HMRC launches Tax Confident, a new website to help people understand tax in plain, simple terms. HMRC launches ‘Tax Confident’ website designed to fill tax knowledge gaps. It covers tax essentials from setting up a business to retirement. Improving customer experience is key to HMRC’s Transformation Roadmap and supports the government’s Plan for Growth. HM Revenue and Customs (HMRC) has launched a new ‘Tax Confident’ website and is encouraging people to use it to help fill their tax knowledge gaps. It … Continue reading Get ‘Tax Confident’
Jobseekers and those starting new jobs encouraged to download the HMRC app for essential job-related information. With National Careers Week under way, jobseekers are reminded to use the HMRC app for essential information when applying for or starting a new job More than 7 million people started new jobs in 2025, an increase of 300,000 from the … Continue reading New figures reveal 7 million started a new job in 2025
HMRC are introducing the requirements to register in stages. From 18th May 2026, HMRC will introduce an online registration system for agent services accounts to register as tax adviserz. If a payroll service already has an agent services account, they will not need to register again. However, HMRC will contact them through the agent services … Continue reading Payroll services to register as Tax Advisers and have AML responsibilities
As part of the February Employer Bulletin, the HMRC are reminding employers that the regular electronic payment deadline of 22nd of both February and March 2026 fall on weekends. The electronic payment deadlines fall on a Sunday on 22 February 2026 and 22 March 2026. To make sure your payment for these months reaches us on time, you need to have … Continue reading HMRC electronic payment deadline for February and March 2026
The 'Specification for PAYE tax table routines' has been updated to version 24.0 (February 2026). HM Revenue and Customs have issued, on Wednesday 11th February 2026, the updated specification for Income which reflect the adjusted parameter values for Scottish Income Tax. The values for England, Northern Ireland and Wales remain frozen. PAYErout-v24-0Download Part of Tax … Continue reading Payroll technical specifications: Income Tax April 2026
The February edition of the HMRC Employers Bulletin out lines the changes to Statutory Sick Pay which applies from 6th April 2026 and forms one of the measures from the Employment Right Act 2025. PAYadvice.UK has published a series of articles and resource pages (see below links) on the changes which are to soon come … Continue reading Statutory Sick Pay (SSP) changes — what employers need to know
HMRC publishes the Employer Bulletin 6 times a year, giving employers and agents the latest information on topics and issues that may affect them. Some of these topics have already been covered by PAYadvice.UK in articles and blogs and further articles and blogs may now additionally be published. The February 2026 edition of Employer Bulletin … Continue reading Employer Bulletin: February 2026
Millions filed their Self Assessment tax return for the 2024 to 2025 tax year by the deadline. 97.25% of tax returns were filed online. 11.48 million people filed their Self Assessment tax returns by 31st January 2026. Anyone who missed the deadline should file their return and pay any tax owed as soon as possible. … Continue reading 11.48 million beat the Self Assessment deadline
HMRC have issued the following (edited) information on Wednesday 21st January 2026, effective for payments from 6th April 2026. Dear PAYadvice.UK, Change to Small Employers Relief rate Employers can currently reclaim 92% of employees’ Statutory Maternity, Statutory Paternity, Statutory Adoption, Statutory Parental Bereavement, Statutory Neonatal Care and Statutory Shared Parental Pay. If a business has … Continue reading Small Employers Relief increased to 9%
(c)2025 Photo by PSP The HMRC issued the following (edited) information on Friday 16th January 2026 confirming the U.K. tax rates applicable from 6th April 2026 (some aspects subject to final parliamentary approval). Dear PAYadvice.UK Following the Scottish Budget announcement, we can provide the following Income Tax information for 2026-2027. Details for Wales, England and … Continue reading Payroll 2026-2027: Allowances, Rates and Thresholds – updates on Income Tax
Majority of [Scottish] taxpayers will pay less income tax than in rest of the UK. Changes to the basic and intermediate rate income tax thresholds will protect lower-income households in 2026-27, Finance Secretary Shona Robison has announced. She also confirmed there would be no changes to rates or the number of tax bands in the … Continue reading Scottish Budget 2026 – Income Tax
Over 4.2 million HMRC app downloads in 2025. More than 136 million logins, a 20% increase on 2024. Older and retired people are the biggest growth area for app engagement. Millions more people are choosing to make managing their tax easier and simpler, with use of the HM Revenue and Customs (HMRC) app continuing to accelerate nationwide. … Continue reading HMRC app surge on those taking control of their tax
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 New Statutory Sick Pay (SSP) – what is the 80% rate?
HMRC interest rates for late payments will be revised following the Bank of England interest rate cut to 3.75% on 18th December 2025. The Bank of England Monetary Policy Committee announced on 18th December 2025 to reduce the Bank of England base rate to 3.75% from 4.00%. HMRC interest rates are linked to the Bank of … Continue reading HMRC revises interest rates
The HMRC have issued the RD1 Specification for employer substitute form P60 and e P60 for the tax year 2026 to 2027. In addition to changing the tax year, the reference to tax credits has been removed and reference to Pension Credit has been added. April 2026 sees the introduction of Statutory Parental Bereavement Pay … Continue reading 2026/2027 P60 & eP60 substitute adjustments
As part of the December 2025 Employer Bulletin, information on Labour supply change responsibilities have been issued: From 6th April 2026, significant changes to PAYE responsibilities will come into effect for labour supply chains, that include umbrella companies. An agency or end client are responsible for making sure PAYE is operated correctly when an umbrella company employs their workers. … Continue reading New PAYE responsibilities in labour supply chains – Umbrellas
As part of the December 2025 Employer Bulletin, HMRC have shared information on promoted Salary Sacrifices Grocery Schemes. They confirm that they are neither approved or promoted by HMRC and are unlikely to qualify for the savings that the promoters indicate. There is no 8% employee NI saving. The following has been issued as part … Continue reading Grocery Salary Sacrifice! Buyer beware
HMRC publishes the Employer Bulletin 6 times a year, giving employers and agents the latest information on topics and issues that may affect them. Some of these topics have already been covered by PAYadvice.UK in articles and blogs and further articles and blogs may now additionally be published. The December 2025 edition of Employer Bulletin … Continue reading Employer Bulletin: December 2025
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 2026/2027 New Starter Checklist – getting prepared
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
Payroll 2026-27: Allowances, Rates and Thresholds from April 2026 Dear PAYadvice.UK Following the Autumn Budget of 26 Ltd November 2025, we can confirm the following information for payroll 2026-27. Where details are not currently known, these are marked as TBA. We will provide a further update as soon as we can. We will also provide … Continue reading HMRC confirm most of the 2026/2027 values for software
As part of budget 2025 announcements have been progressed in relation to collective money purchase schemes. What a CMP The Pension Schemes Act 2021 introduced CMP schemes (also known as collective defined contribution (CDC) schemes) as a new type of trust based occupational pension scheme. Currently CMPschemes are only available to single or connected employers. However, the Department … Continue reading Budget 2025 – Collective money purchase schemes
This measure is about bringing Employee Car Ownership Schemes (ECOS) within the scope of the benefit in kind rules as company cars from 6th April 2030, with transitional arrangements. What is an ECOS scheme An ECOS is something more organised than the employer simply ceasing to provide a company car and (normally) increasing taxable pay … Continue reading Budget 2025 – Changes to Employee Car Ownership Schemes (ECOS)
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 2026/2027 Welsh Rate of Income Tax
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
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
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
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
(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
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
Guidance for employers on making employees’ student loan and postgraduate loan deductions in different circumstances has been updated with a correction (21st October 2025). The change made: Information about what to do if an employee dies has been corrected. Student loan and postgraduate loan repayment guidance for employers Previously the guidance implied that student loan … Continue reading Student Loan deduction guidance corrected
As part of the October 2025 shaming list of employers who have been named and fined for National Minimum Wage regulations breaches, 11 of the 491 related to various types of deduction from wages which reduce the average pay rate below National Minimum Wage rates which act as minimum legal amounts to pay for time … Continue reading Pay deductions can cause minimum wage breaches
(c)2025 PAYadvice.UK Direction about the approved method of electronic communication to give an employee notice of a tax code. The HMRC Commissioners’ Direction has been updated. HM Revenue and Customs (HMRC) give the following direction about the approved method of electronic communication which may be used to give an employee a notice of a tax … Continue reading Employee Notice of Tax Code – Commissioners’ Direction
(c)2025 PAYadvice Ltd HM Revenue and Customs have shared that they are aware that users of their web and app services have been having problems accessing online services. This is due as part of global issues affecting Amazon Web Services. HMRC are now pleased to confirm that the earlier global outage affecting Amazon Web Services … Continue reading HMRC impacted by Amazon internet problems
Although employers may have set payment rates at or above the National Minimum Wage for their workers and employees, some even using the higher Living Wage (the voluntary living wage foundation rate), many appear to also get their workers to do extra time for free or count certain work activity as unpaid. All work time … Continue reading Another 103 employers caught not paying for time worked!
£6 million repaid to workers as Government cracks down on employers underpaying their staff Nearly 500 employers fined over £10 million for failing to pay the National Minimum Wage. £6 million put back into the pockets of working people as Government delivers the biggest overhaul of workers’ rights in a generation, as part of its … Continue reading Another 491 employers fined £10million+ for National Minimum Wage breach
HMRC publishes the Employer Bulletin 6 times a year, giving employers and agents the latest information on topics and issues that may affect them. Some of these topics have already been covered by PAYadvice.UK in articles and blogs and further articles and blogs may now additionally be published. The October edition of Employer Bulletin includes … Continue reading Employer Bulletin: October 2025
HMRC have added a practicing barrister, Setu Kamal, to the HMRC tax avoidance promoters list for the first time. Practising barrister added to GOV.UK tax avoidance promoter list for the first time HM Revenue and Customs (HMRC) finds senior legal professional designed four schemes that aimed to avoid Income Tax and National Insurance A practising … Continue reading HMRC name tax avoidance barrister
575,200 people on a low income have opened a Help to Save Account. They can save up to £50 a month and get a 50% bonus on top. Part of Government’s mission to grow the economy and deliver on our Plan for Change. Help to Save users have received more than £220 million in bonus … Continue reading £220 million boost for the Help to Save club
(C)2025 PAYadvice Ltd Simon Parsons of SD Worx, PAYadvice and representing the BCS Oayroll Group (part of the Chartered Institute for IT) was in attendance at the annual HM Fevenue and Customs (HMRC) annual conference. The following is the recently appointed Exchequer Secretaries speech to the conference. The Exchequer Secretary made a speech at the … Continue reading Exchequer Secretary speech to the annual HMRC Conference
Since the introduction in April 2012, an employer who is within Real Time Information (RTI) had the ability to request, for up to 100 new employees only, a NINO Verification Request (NVR) via RTI to allow them to either verify a National Insurance Number (NINO), or to obtain a NINO for the Employee when it … Continue reading National Insurance Verification (NVR) withdrawn
Originally started in readiness for 2021, PAYadvice.UK are constructing its popular PAYadvice Series Legislation Update 2026 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 2025 changes, even to … Continue reading Legislation updates 2026 for payroll
For the third year running, Christmas Day and New Year’s Day don’t fall on weekends and there are no substitute days. However, 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 there are … Continue reading Christmas 2025 and New Year 2026 – when are the Bank Holidays and what about paying early?
On Wednesday 3rd September 2025, the Chancellor Rachel Reeves confirmed that the date of the Budget will be held on Wednesday 26th November 2025 and has commissioned the Office of Budget Responsibility (OBR) to prepare an economic and fiscal forecast. Budget to address economy that’s “not working well enough for working people” In a video message, … Continue reading Autumn 2025 budget date announced
The HMRC Collection of Student Loan - consultation group meeting held on Tuesday 2nd September 2025, has shared and confirmed the student Plan Type 4 (Scotland) threshold applicable from 6th April 2026. This information will be additional announced at a later point by the Scottish Parliament, they have confirmed that there is no restriction in … Continue reading Student Loan Plan 4 (Scotland) threshold for April 2026 confirmed
