Payroll & HR Annual Update 2026

Payroll Update 2026

The 2026 Budget

• A review of the changes and announcements from the government budget which affect the payroll and HR industry

Income Tax

• Tax and Allowances in England and Northern Ireland
  • Codes, Allowances, Bands and Thresholds
• Scottish Income Tax (SIT)
  • Codes, Allowances, Bands and Thresholds
  • The future path of Scottish Income Tax
• Welsh Income Tax (WRIT)
  • Codes, Allowances, Bands and Thresholds
  • Welsh plans around change
• Future Tax Expectations and government plans – what’s changing, and what’s remining frozen for 2026/27

Payroll Benefits

• Focus on the current voluntary process and registration remaining for 2026
• The change through mandation and challenges, issues, and areas of focus including:
  • Planning for 2027
  • Changes to reporting and RTI
  • The manual process and year end
  • Managing the payrolling calculation

Childcare

• What’s new in the workplace for supporting childcare – free childcare

Salary Sacrifice and Flexible Benefit

• Unravelling Salary Sacrifice, its rules and value
• Understanding the rules – the effects of salary sacrifice to pay and other calculations
• Schemes and Administration

National Insurance

• UK Rates and Thresholds including changes announced
• Has the National Insurance direction changed?
• Use of the Employment Allowance and changes
• National Insurance savings – updates and best practice
  • The future of Investment Zones, Veterans, and Freeports

Real Time Information and the future of Payroll

• Updates, changes and new data requirements for RTI in the future
• Impacts of changes to RTI including the implementation of mandatory payrolling benefits?
• Changes to the FPS
• Changes to the EPS
• Any other forms or changes including the Starter Checklist

Holiday Pay

• Updated 2026 guidance – their application for 2026 and beyond
• A review of case law

International Updates

• Reviewing key aspects of international change that affect payroll and HR

Statutory Payments

• Employment Law Payments and Awards
  • Great Britain
  • Northern Ireland
• Statutory Sick Pay (SSP) – rates and tables
  • The key Employment changes for sickness
  • Rule changes and calculation
  • Linking periods and transitional rules
• Further changes to Sickness and Absence including:
  • Outstanding consultations
• Parental payments and tables including maternity and other parental rates
  • Confirmed Parental Pay changes and new requirements
• Neonatal leave and Pay – one year on
• The Paternity Leave (Bereavement) Bill / Norther Ireland changes
• Updates to other forms of leave

Student and Postgraduate Loans

• New Rates 2026/27
• SL and PGL updates
  • The start of plan 5 for payroll

Employment Changes

• Flexible Working and hybrid working
• The Employment Bill and Making Work Pay
  • Understanding the content
  • Working through the delivery timeline
  • The effect on process and contract
• Working from home
• Future possible employment changes and what’s next on the bill

National Minimum Wage

• Changes to Age bandings and Rates
• The HMRC update on compliance including the most recent lists of naming and shaming
• The Voluntary Living Wage / the Real Living Wage
• Mileage Rates
• Loans
• Travel and Subsistence
• Company Cars
• The electric situation including charging
• Car Rates and Changes through to 2028
• What’s to come 2028/29
• Ultra-Low Emission Vehicles and WLTP
• Future expectations around fuel and the environment
• Company Van rates and charges

Expenses and Benefits

• Mileage Rates
• Loans
• Travel and Subsistence
• Company Cars
• The electric situation including charging
• Car Rates and Changes through to 2028
• What’s to come 2028/29
• Ultra-Low Emission Vehicles and WLTP
• Future expectations around fuel and the environment
• Company Van rates and charges

Pensions

• State Pension payments
  
• The Annual and Lifetime Allowance
• Auto Enrolment and Re-Enrolment Update
  • The Auto-enrolment changes and timelines
• State Pension Age and Retirement
• The Pension Dashboard
  • Position, implementation and live dates
  • What it means to payroll and pension savers