The New Tax Year Has Begun!

As we embark into the new tax year, we want to inform you of a few updates in the payroll department that have taken effect from the 1st April 2025. The following outlines the upcoming changes that will be happening which you may notice on your payroll:

• The Secondary threshold for Employers National Insurance has decreased from £9,100 to £5,000 until 6th April 2028. This is the point at which employers become liable to pay NICs on an individual employee’s earnings.
• The Employer NIC rate increases from 13.8% to 15%.
• Employment Allowance increases from £5,000 to £10,500. This allows businesses with employer NIC bills to deduct £10,500 from their bills over the tax year.
• National Minimum Wage has increased. Click here to see our previous post regarding this. If you have a payroll scheme with us, we will action this on your first payslip in April.
• Statutory Maternity Pay has increased from £184.03 to £187.18 for the weekly rate. This is still dependent on the lower of 90% of the employees average weekly earnings or £187.18.
• Statutory Sick Pay has increased from £116.75 to £118.75.
• Student Loan employee earnings thresholds has increased for the 25/26 tax year. For Plan 1 – £26,065 per year. For Plan 2 – £28,470 per year. For Plan 4 – £32,745 per year.