Tax relief for employee pension contributions to pensions schemes is given in two different ways: The Net Pay Arrangement This is where contributions are deducted from an employee’s pay and tax relief is given to the employee at source, applied at their marginal rate. Relief at Source Contributions are deducted after tax and NIC and […]
From August 2026, payroll teams should expect employee queries about the new Low Earner’s Pension Payment. HMRC will contact around one million eligible individuals directly, addressing the long-standing difference in pension tax relief between net pay arrangement and relief at source schemes. The change matters because two employees can make the same workplace pension contribution […]
Read articleThe June 2026 Employer Bulletin from HMRC, published on 17 June 2026, brings urgent reminders on payroll compliance, benefits reporting changes, and major employment law reforms under the Employment Rights Act 2025. With key deadlines approaching and new duties on the horizon, employers should act promptly to maintain compliance and support their teams. PAYE Compliance […]
Read articleThe UK Government’s pilots to replace the traditional “tick-box” fit note with personalised stay-in-work and return-to-work plans (launched in May 2026) are designed to get employers involved much earlier in an employee’s sickness absence. This is part of the same broader package that already introduced Statutory Sick Pay (SSP) from day one on 6 April […]
Read articleIn a boost to encourage nursey school teachers to obtain degree level qualifications the government announced they will pay bonuses of £4,500 to any qualified teacher taking up a position in England’s most ‘deprived communities’, in a bid to provide expert support in the development of children in the early stages. Government educational statistics show […]
Read articleThe Department for Business and Trade has launched the latest round of consultations under the government’s manifesto to Make Work Pay. This recent consultation is seeking views on ongoing proposals to end one sided flexibility by ensuring that all jobs provide a baseline of security for workers. The focus of the consultation seeks views on […]
Read articleThe UK Government’s pilots to replace the traditional “tick-box” fit note with personalised stay-in-work and return-to-work plans (launched in May 2026) are designed to get employers involved much earlier in an employee’s sickness absence. This is part of the same broader package that already introduced Statutory Sick Pay (SSP) from day one on 6 April […]
Read article6 April was a major payroll date, but it was not the finish line. The Employment Rights Act 2025 received Royal Assent on 18 December 2025, which means the legal framework is now in place. The real challenge for payroll teams is that several provisions are being phased in, so compliance does not stop with […]
Read articleThe Fair Work Agency is now the UK’s new executive agency for enforcing workers’ rights. For payroll professionals, this is not just a policy update. It is a practical reminder that pay accuracy, holiday records, agency worker processes and statutory payments must be audit-ready. The agency was formed in April 2026 and is sponsored by […]
Read articleWith UK payroll compliance tightening, accountants are increasingly advising clients on the choice between a traditional payroll bureau and full outsourcing. New umbrella company rules, effective from 6 April 2026, have intensified the debate by introducing joint and several liability across supply chains. This change is forcing bureaus, recruitment agencies, and end clients to reassess […]
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