Is your payroll system prepared for changes in the upcoming tax year?

We are getting ever closer to the 2025/26 tax year, when changes to payroll regulations announced last year will come into effect.

Employers need to stay informed and adjust their payroll systems accordingly to ensure compliance.  

New National Minimum Wage rates 

Effective from 1 April 2025, the National Minimum Wage (NMW) rates will increase as follows: 

These adjustments aim to reflect the cost of living and ensure fair compensation for workers across all age groups.  

New employer National Insurance contribution rate 

From 6 April 2025, there will be changes to the Employer’s National Insurance Contributions (NICs): 

Changes to Employment Allowance 

To support employers, particularly smaller businesses, the Employment Allowance will undergo the following modifications from 6 April 2025: 

Changes to statutory pay rates 

As of April 2025, the UK Government has confirmed the following updates to statutory pay rates: 

Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP), Statutory Shared Parental Pay (ShPP), and Statutory Parental Bereavement Pay (SPBP) will all have their weekly rates increased from £184.03 to £187.18.  

Statutory Sick Pay (SSP) will increase from £116.74 to £118.75.  

Additionally, the earnings threshold for these statutory payments will rise from £123 to £125 per week.  

Preparing for the changes 

Employers should take the following steps to prepare for these upcoming changes: 

Need help managing your payroll and these updates as we enter the new tax year? Contact us today for professional advice.