What the 2025/26 Payroll Changes Mean for Employers

by | Jun 16, 2025 | Accounting | 0 comments

New tax year. New rules. More admin. Sound familiar?

Welcome to the 2025/26 payroll season – and if you’re an employer, brace yourself. There’ve been some big shifts this year, from higher employer NICs to updated statutory payments. If you’re running payroll in-house, it’s time to make sure you’re still compliant… and not accidentally overpaying (or underpaying) your team or the taxman.

Here’s what you need to know – and how AD Accountancy can take it off your plate, so you can get back to actually running your business.

What’s Changed in Payroll for 2025/26?

1. Employer National Insurance Contributions (NICs) Have Gone Up

The big one. Employer NICs have increased, meaning it now costs more to employ staff – particularly those earning over the secondary threshold (£9,100 annually).

This change affects your overall payroll bill, and if you’re not forecasting correctly, it could leave a dent in your budget.

💡 Tip: Recalculate your employer contributions now to avoid a nasty surprise down the line.

 

2. Statutory Payment Rates Have Been Updated

From Statutory Sick Pay (SSP) to Maternity, Paternity, and Adoption Pay, the 2025/26 rates have all been adjusted.

Here’s a quick overview of the new weekly rates:

  • SSP: £116.75
  • SMP/SPP/SAP/ShPP: £192.40 (or 90% of the employee’s average weekly earnings if lower)

Failing to update your payroll software with these figures? That could land you in hot water with HMRC – and leave staff short-changed.

 

3. Real-Time Information (RTI) Reporting: Tighter Timelines

HMRC is cracking down on late or incorrect RTI submissions. More penalties are being issued for missed deadlines, and small errors are getting flagged faster.

Whether you’ve got one employee or twenty, make sure your payroll is:

  • Filed on time, every time
  • Accurate to the penny
  • Backed up with records

It’s the admin headache no one asked for – but that’s where we come in.

 

Why This Matters to You

If you’re a small business owner, you’re already spinning enough plates. Between staffing, stock, sales, and staying profitable, the last thing you need is more compliance complexity.

The 2025/26 updates might look minor on paper – but if they’re not handled right, they can cause:

  • Overpayment of NICs
  • Staff underpayment claims
  • HMRC penalties for non-compliance

 

Let AD Accountancy Handle It

We know payroll like the back of our hand – and we’ve helped businesses across Manchester and beyond get it right every time.

With AD Accountancy Payroll Services, you get:

  • Full compliance with all 2025/26 change
  • Automated, timely submissions to HMRC
  • Accurate payslips for your staff
  • Advice on payroll reliefs and employment allowances
  • More time to focus on growing your business

Outsource your payroll to us, and we’ll keep you sorted, compliant, and stress-free.

Let’s chat. We’ll run through your setup, handle the boring bits, and make payroll painless.

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