This page has been regularly updated with they changes when announced for 2025.
Resources for 2024
The 2024/2025 resource can be found at:
Resources for 2025
The PDF download is now available.
Guernsey (1st January 2025)
Class 1 Contributions
The changes from 1st January 2025 to Class 1 contributions were proposed on 9th September 2024 and approved on 23rd October 2024.
The 2025 increased contribution values align with the previously announced 10 year programme of change:
Minimum wage
The changes to minimum wage for Guernsey commencing 1st October 2024:
Jersey (1st January 2025)
The changes applicable from 1st January 2025 have been confirmed.
The Minimum Earnings Threshold have been frozen:
Jersey Minimum Wage
The Jersey minimum wage rose from April 2025
United Kingdom (6th April 2025 new tax year)
Autumn Budget 2024
The Chancellor Rachel Reeves, the first female UK Chancellor of the Exchequer in history delivered her first Budget Speech on Wendnesday 30th October 2024 announcing a number of changes to taxation, National Insurance and future spending plans for the UK.
The following articles relates to the budget speech and associated measures and announcements:
HMRC guidance to operate from 6th April 2025
With the Autumn Budget 2024 having taken place on Wednesday 30th October 2024, the trickle of government announced changed that impact payroll are becoming available and were updated on these resources soon after officially being made available.
Real Time Information (RTI)
The 2025/2026 technical guides to RTI were released on Wednesday 25th September 2024 at Real Time Information internet submissions: 2025 to 2026 technical specifications – GOV.UK (www.gov.uk).
The changes relate to the change in tax year, the new requirement to report:
- Tax year rolled forwards from 2024-2025 to 2025-2026
- New data item 215 – Value of Statutory Neonatal Care Pay recovered year to date
- New data item 216 – Value of NIC compensation on Statutory Neonatal Care Pay year to date
- New data item 217 – Value of Statutory Neonatal Care pay (SNCP) year to date
- New data item 218 – Employee workplace postcode for Freeports and Investment Zone NICs
- New data item 219 – Pension commencement excess lump sum
- New data item 220 – Stand alone lump sum
- New validations on NI letters:
- For ‘F’, ‘I’, ‘L’, ‘S’, ‘N’, ‘E’, ‘D’ or K’, workplace PostCodes must be present
- For ‘B’ or ‘E’ that the birth date is before 6th April 1961
Forms P60, substitute P60 and substitute eP60
The following article details the requirement for both the 2025/2026 tax year and the 2024/2025 tax year – The P60 and eP60 form for employees will reflect the addition of Statutory Neonatal Care Pay (SNCP):
Income Tax Personal Allowance
The Autumn Budget 2024 confirmed that the personal allowance for April 2025 is frozen and will continue to be until April 2028 when it is expected to rise in line with inflation:
General tax code uplifts are instructed by authority of form P9X to employers. As the personal allowance remain frozen, there is no general uplift of tax codes for April 2025. Other individual tax code updates will be issued as a P9 or P6 notification.
Rest of the UK Income Tax (England and Northern Ireland)
The tax rates are confirmed as frozen for the tax year commencing 6th April 2025, it is anticipated that these will remain unchanged in future years also until April 2028 although subject to confirmation at future government fiscal events (budgets and statements):
Scotland and Income Tax
At the Scottish Budget on 4 December 2024, the Cabinet Secretary for Finance set out the proposed Scottish Income Tax rates and bands for 2025 to 2026. These are operational from 6th April 2025:
Wales and Income Tax
The Welsh Draft Braft Budget 2025/2026 was held on Tuesday 10th December 2024 and confirmed the proposal for the Welsh government to continued to match the Income Tax Rates for the rest of the United Kingdom (England and Northern Ireland). :
Expenses and Benefits
Employers who want to introduce formal payrolling for the 2025/2026 tax year must plan and register with HMRC online in advance and at the latest 5th April 2025. Since May 2024, agents can also register their client PAYE schemes for payrolling.
As part of the Autumn Budget 2024 announcements, it was indicated that mandatory payrolling of benefit in kind was to be progressed for introduction from 6th April 2026 with the exception of Beneficial Loans and Accommodation which initially may be payrolled for the first time on a voluntary basis.
Also from April 2026, the application of Class 1A National Insurance will require to be applied in real time. Currently Class 1A for benefits is not permitted to be accounted within payroll but by the submission of form P11Db by applying an annual adjustment value.
On Monday 28th January 2025, the government confirmed that the proposal would be delayed one year to April 2027 to allow more time for the development of the change.
The P11D is heading for retirement.
| Compulsory Payrolling of benefits on the table for April 2026 – PAYadvice.UK |
| Beneficial loan interest change point revised – PAYadvice.UK |
Employer provided Childcare Vouchers – Basic Earnings Assessment
As the tax bands tax bands are indicated as not changing from 6th April 2025, the PAYadvice BEA tool for 2023/2024 remains suitable for continued annual use including the 2025/2026 tax year in the same way as it being suitable for 2023/2024 and 2024/2025..
Cars, Vans and Fuel
The following articles relate to changes in relation to Company Cars, Company Vans and the provision of fuel for private use.
Where a company car is provided either as a direct benefit or via a salary sacrifice scheme, there are liabilities to report the benefit to HMRC via P11D or payroll with car reporting on the FPS submission.
The company car taxation of electric vehicle is increasing from the current 2% charge to a new increased 3% charge, and the Autumn Budget 2024 announced further changes for the future.
National Insurance
Class 1 earnings bands
As part of the Autumn Statement 2024, Rachel Reeves announced changes to National Insurance Contributions, especially to the operation of Secondary employer National Insurance Contributions.
The thresholds and limits have been published and confirms changes to the Lower Earnings Limit (LEL) and the Secondary Threshold (ST):
Class 1 Contribution Rates from 6th April 2025
The National Insurance contribution rates applicable from 6th April 2025 are confirmed with employee contribution continuing to be frozen, but a 1.2% increase to employers secondary contribution and a reduced Secondary threshold:
And mariners
Class 1A and Class 1B contribution rates
Along with the announced changed to secondary National Insurance, the Employer contribution rates for Class 1A and Class 1B are increased by 1.2% to 15%
Employment Allowance
With the increase to employers National Insurance, there is a counter increase to the employment allowance which was announced as part of the Autumn Budget 2024:
Student Loan deductions
The student plan threshold applicable from 6th April 2025 for Plans 1, 2 and 5 were confirmed on Tuesday 13th August 2024.
The thresholds for Pan 4 (Scotland) was confirmed by HMRC on 13th November 2024.
The Postgraduate threshold was confirmed as frozen on 14th November 2024.
Although some ex-students may have Plan Type 5 loans, there is no repayment due until 6th April 2026:
Statutory Payments
The statutory payments for April 2025 were confirmed.
The Lower Earnings Limit rise to £125 also applies to judge qualification for statutory payment.
Statutory Parental Payments:
- Statutory Maternity Pay (SMP)
- Statutory Adoption Pay (SAP)
- Shared Parental Pay (ShPP)
- Statutory Paternity Pay (SPP)
- Statutory Parental Bereavement Pay (SPBP)
- Statutory Neonatal Care Pay (SNCP)
The Small Employers Compensation Rate increases to 8.5% (from the former 3%) on payments made on or after 6th April 2025. The Small Employers Relief (SER) Threshold is £45,000.
Statutory Neonatal Care Pay (SNCP)
The new statutory payments (SNCP) is being 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 in blocks of Tier 1 (during neonatal care) and Tier 2 (after neonatal care). For more details see:
Statutory Sick Pay (changes on 6th April 2025)
The weekly rate to be operated from 6th April 2025 are confirmed. The government are consulting on changes to SSP to remove the Earnings Threshold test, remove the requirement for 4 day PIW and implement a percentage earnings cap on the SSP payment rate. These changes are likely to not be progressed until at least April 2026.
The following are confirmed:
| Statutory Payment Rates 2025 increased by 1.7% – PAYadvice.UK |
| Has Statutory Sick Pay (SSP) changed? – PAYadvice.UK |
The weekly rate of SSP is confirmed, along with confirmed daily table values:
Pension AE thresholds
There is an intention to reduce the Lower Earnings to zero at some point in time, the Pension Minister already has powers to announce a decreased Lower Level of qualifying earnings. This Lower Level is already different and lower than the NIC LEL
The values to apply from 6th April 2025 was confirmed as frozen on 21st January 2026:
The Lower level of qualifying earnings is not the same as the National Insurance Lower Earnings Limit (LEL).
National Minimum Wage / National Living Wage
With the election of the new Labour government, a 100 day commitment was promised indicating an increase to reflect a genuine living wage. Also an intention to remove the age bands. Subsequent announcements have confirmed an additional remit to the Low Pay Commission to consider the cost of living in future recommendations of minimum wage, however, no change is indicated as occurring before 1st April 2025.
The UK government have confirmed the changes to National Minimum Wage and National Living Wage for operation for pay reference periods starting on or after 1st April 2025 on Tuesday 29th October 2024 as part of the lead in to the Autumn Budget 2024 on 30th October 2024.
A significant increase to the 18-20 year old rate is a step to progressing the Living Wage at some future point to apply to those aged from 18 years old.
Real Living Wage and London Living Wage
The uprated Living Wage rates were announced on Tuesday 23rd October 2024 by the Living Wage Foundation. Those who are accredited Living Wage employer have until 1st May 2025 to apply these rates.
| Real Living Wage increases to £12.60 in UK and £13.85 in London – PAYadvice.UK |
| Real Living Wage rise – what about the impact on Statutory Maternity Pay – PAYadvice.UK |
Scottish Earnings Arrestments (6th April 2025)
The Scottish Parliament have changed the table of dedutions for Earnings Arrestments which are to be applied from 6th April 2025. These new tables will apply to both new and pre-existing earnings arrestments.
The revised tables:
Isle of Man (6th April 2025)
The Isle Man Budget 2025 took place on Tuesday 18th February 2025.
Income Tax
The budget confirmed changes to Income Tax applicable from 6th April 2025:
National Insurance
The budget confirmed changes to National Insurance Contributions applicable from 6th April 2025:
Minimum Wage
The Isle of Man Tynwald has approved changes to Minimum Wage applicable from 1st April 2025:
| Isle of Man – April 2025 minimum wage rise confirmed – PAYadvice.UK |
| Isle of Man – minimum wage rate proposal changed – PAYadvice.UK |
| Isle of Man minimum wage change proposals 2025 – PAYadvice.UK |
PAYadvice.UK Legislation Update 2025
The download of the latest PDF version will be available here:
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DonateDonate monthlyDonate yearlyPAYadvice.UK – Started 25/4/2024 Last updated 26/6/2025