Payroll Changes for 2026/27: What Employers Need to Know

3rd of June, 2026

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Payroll Changes for 2026/27: What Employers Need to Know

The 2026/27 tax year brings several important payroll changes that could affect your business costs and compliance obligations.

Key Changes for Employers

Employer National Insurance

Employer National Insurance Contributions (NICs) remain at 15%, with contributions payable on earnings above the £5,000 annual secondary threshold. Businesses should review payroll budgets to ensure employment costs are accurately forecast.

Employment Allowance

Eligible employers can continue to benefit from the Employment Allowance, which provides up to £10,500 of relief against employer National Insurance liabilities.

National Living Wage Increase

From April 2026, the National Living Wage for workers aged 21 and over increased to £12.71 per hour. Employers should ensure payroll systems and employee pay rates are updated accordingly.

Statutory Sick Pay Reform

Significant changes to Statutory Sick Pay (SSP) came into effect from April 2026, including the removal of waiting days and broader eligibility for employees. Employers should review absence management and payroll procedures to remain compliant.

Payroll Compliance

With increasing HMRC scrutiny and ongoing employment law reforms, maintaining accurate payroll records and submitting Real Time Information (RTI) returns on time remains essential. Businesses should regularly review payroll processes to minimise compliance risks.

How We Can Help

Our payroll specialists can help ensure your business remains compliant with the latest legislation while managing payroll efficiently and accurately. Whether you need ongoing payroll support or advice on the latest changes, we're here to help.

Contact us today to discuss your payroll requirements.