Articles and information in relation to UK Payroll for business, employers and employees.
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
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 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
Aim to deliver 5,000 new walking, wheeling and cycling routes and 10,000 safer crossings over the next 5 years. more than half (55%) of short journeys in towns and cities to be walked or cycled by 2035 £4.5 billion projected to be invested over 5 years for thousands of new routes and safer crossings connecting homes with schools, high streets, workplaces and local … Continue reading Cycling and walking boom with thousands of new routes and safer crossings
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
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
(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
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
£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
The Electric Car Grant will make owning an electric car cheaper and easier for people across the UK. thirteen models from Nissan, Renault and Vauxhall now qualify for major discounts as part of the Electric Car Grant scheme drivers to save £1,500 on these latest electric cars, in addition to 4 Citroën models announced earlier … Continue reading Electric car prices slashed as grant scheme expands to 13 more models
HMRC encourages parents to register for Tax-Free Childcare to help towards the cost of their childcare bills. Working families are encouraged to sign up for Tax-Free Childcare to save on their childcare bills. Working families can save up to £2,000 annually when paying for childcare in 75,000 childcare settings across the UK. Supporting the government’s … Continue reading Tax Free Child Care
Salary sacrifice EV schemes Electric Vehicles (EV) are an increasing Salary Sacrifice arrangement that works being offered by employers enabling the expansion EV usage across the UK. Unlike some salary sacrifice arrangements which may not work as stated such as childcare and groceries which may not meet exemption qualifying conditions, EVs are not captured by … Continue reading Boost for Britain’s electric vehicle revolution
In March 2023, HM Revenue and Customs (HMRC) commissioned IFF Research to undertake research to understand the experiences, motivations, and attitudes of employers towards using salary sacrifice arrangements for pensions. The research also explored whether hypothetical changes to tax reliefs (such as reform of NICs relief) on pension salary sacrifice arrangements may impact employers’ motivations and attitudes … Continue reading Salary sacrifice pension attitudes
The Department of Business and Trade (DBT) has indicated that the largest reason for the May 2025 named employers breaching National Minimum Wage regulations was because of pay deductions. Paying National Minimum Wage is not about an employees original hourly rate, but about the rate actually received for all working time. Minister for Employment Rights, … Continue reading Deductions remain a common cause of minimum pay breach
With the significant increases to National Minimum and National Living Wage, a number of questions are being raised by employers on their options with regards to pre-existing salary sacrifice arrangement where the operation of the sacrifice now takes the employees earnings for National Minimum Wage (NMW) below the employees associated hourly NMW rate. For those … Continue reading Can I change a Salary Sacrifice to a net deduction?
Promotion of salary sacrifice grocery schemes With the recent cost of living challenges and measures to improve employee retention, a number of questionable arrangements are being promoted by a small number of providers with statements such as ‘no brainer’! One such scheme being actively pushed are grocery salary sacrifice schemes. One of the promoters misleadingly … Continue reading Salary sacrifice grocery schemes! Do they work?
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
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
As part of the October 2024 Employer Bulletin, the HMRC has reminded employers of the impacts that salary sacrifice (salary exchange, smart schemes, flex benefits) have in relation to National MinimumWage regulations. Being compliant with minimum wage law is not about the starting rate of pay, but about the rate received across all working hours … Continue reading How salary sacrifice affects National Minimum Wage
HMRC have issued the October 2024 edition of the Employer Bulletin which brings the latest HMRC updates and guidance to support employers, payroll professionals and agents. Introduction In this month’s edition of the Employer Bulletin there are important updates and information on: PAYE introduction of a new statutory allowance from April 2025 — Statutory Neonatal Care Pay … Continue reading October 2024 Employer Bulletin
Lees of Scotland are another retailer caught out by the complex National Minimum Wage regulations and their efforts to help employees via a salary deduction savings scheme which they operated for over 30 years. Well known for their manufacture of teacakes, snowballs and macaroons, Lees operated a savings scheme where its workers voluntarily paid contributions … Continue reading Minimum wage and the Payroll Savings scheme dilemma!
Clarifying the workplace nursery partnership requirement rules at section 318 ITEPA As part of the July 2024 agent update 121, HMRC have confirmed the suspicion of PAYadvice that some of the actively promoted new salary sacrifice arrangements claiming to be workplace nurseries do not work as the employer has too little involvement or responsibility and … Continue reading Workplace nursery – really!
PAYadvice author Simon Parsons is a contributor to the new GPA magazine 04:05 Global Payroll, in this months edition he covers the increasing use of Tax Planning and Tax Avoidance measures which appear to be expanding in use in the current cost of living crisis. However, where some may work, other don’t and HMRC are … Continue reading GPA – UK Payroll – Tax Planning and Tax Avoidance Measures Becoming Prevalent
Salary sacrifice schemes have become increasingly popular, often generated by employer efforts to save secondary National Insurance contributions with employers saving 13.8% in employment on costs. They have become a popular vehicle for offering various employment related reward strategies with popular use for: Pensions Cycle to Work Schemes Childcare Vouchers (although restricted with no new … Continue reading Salary Sacrifice and Minimum Pay : benefit or a risk too far
524 businesses have been named for failing to pay the minimum wage Employers ordered to repay workers nearly £16 million, plus an additional financial penalty, after breaches left over 172,000 workers out of pocket. Comes as the National Living Wage is set to increase by 9.8% to £11.44 an hour on 1st April, as announced … Continue reading Shamed for not paying minimum wage
With the governments Autumn Statement reduction of 2% in the standard rate of National Insurance Contributions from the current 12% to a new 10% from 6th January 2024, it’s all good news for those who pay National Insurance. Salary Sacrifice arrangements have remained popular with employees often able to benefit by the reduction of the … Continue reading Reduction in NI = reduction in employee salary sacrifice benefit
Employers may need to review their reward strategies! With the proposal of the Low Pay Commission (LPC) for a significant rise in the National Living Wage (NLW) and National Minimum Wage (NMW), low paid employees are set to see rises exceeding 9%! And the future prospect of seeing the NLW starting point drop to 21 … Continue reading Significant minimum pay rise may impact employer reward strategies
An employer who provides childcare vouchers to employees are required to undertake an annual Basic Earnings Assessment (BEA) prior to the start of a new tax year to define the tax and NIC free amount of ChildCare Vouchers (CCV) allowed. The rates and limits available are set by the Westminster parliament and apply across the … Continue reading Child Care Vouchers – 2023/2024 Basic Earnings Assessment Calculator
From Wednesday 6th April 2022, the Health and Social Care Levy will begin to raise billions to tackle the Covid backlogs and reform adult social care From Wednesday 6th April 2022, the Health and Social Care Levy comes into effect and begins to raise billions to help tackle the Covid backlogs and reform the adult … Continue reading Health and Social Care Levy to raise billions for NHS and social care
HMRC have published the Real Time Information (RTI) Rules and Interface Management (RIM) artefacts and supporting technical specifications for software developers RTI 2022/2023 PAYadvice.UK 11/8/2021
BEIS and HMRC held a Joint National Minimum Wage (NMW) virtual Stakeholder Forum on 29th April 2021 with employer and Minimum pay industry experts. They have kindly shared the presentation slides from the day. The government department responsible for employment law including National Minimum Wage is the Department for Business Energy and Industrial Strategy (BEIS). … Continue reading BEIS-HMRC Joint National Minimum Wage Stakeholder Forum
HMRC have added further clarification to the furlough guidance in relation to salary sacrifice arrangements and the calculation of the reference salary for the Job Retention Scheme. They clarify that: You cannot include the following when calculating wages: payments made at the discretion of the employer or a client - where the employer or client … Continue reading Salary Sacrifice and furlough reference salary
HMRC have applied further updates (4th February 2021) to the guidance for the Coronavirus Job Retention Scheme. Page titleChangesCheck if your employer can use the Coronavirus Job Retention Scheme (Employee Page)To update the contact HMRC paragraph and include there is no right of appealCheck if you can claim for your employee's wages through the Coronavirus … Continue reading Coronavirus Job Retention Scheme guidance updates 4th February 2021