
Payroll tax changes for the 2025/26 UK tax year
by Intuit•4• Updated 2 months ago
Learn more about the latest payroll tax changes for the 2025/26 UK tax year.
This article is for customers who use QuickBooks Online Core Payroll, Advanced Payroll or Bureau Payroll. |
Investment Zone Employer NICs Relief
From 6 April 2025, QuickBooks Payroll will continue to support Investment Zone NIC category letters, with a key change: employers must now record the postcode where the employee works if their NIC category falls within an Investment Zone.
If an employee falls under one of the following NIC category letters: F, I, L, S, N, E, D, K, the employer must provide the postcode of the employee’s workplace.
Income tax rates and thresholds
Income Tax is the tax you pay to the government on your yearly earnings. If you're self-employed, this includes profits from online sales. The amount you owe depends on two main factors: how much you earn and your Personal Allowance, which you can find in your tax code.
- For detailed information about Income Tax, please refer to our article on understanding Income Tax.
- To accurately calculate your Income Tax, we recommend using the official HMRC online calculator.
Select the relevant heading to see the breakdown of tax bands and rates. The tax year runs from 6 April 2025 to 5 April 2026.
You can also find the income Tax rates and allowances for current and past years on the HMRC website.
Automatic enrolment earnings thresholds
Statutory weekly payments
Statutory neonatal care leave and pay
From April 2025, Statutory Neonatal Care Leave & Pay (SNCLP) is introduced to support employed parents of babies requiring neonatal care.
Statutory paternity pay (SPP) process
Student and postgraduate loans
Employment allowance
Employers may be eligible for the Employment Allowance, reducing National Insurance liability by up to £10,500. If eligible, update your payroll settings and notify HMRC via an EPS (Employer Payment Summary). Check your eligibility on the HMRC website.
Employer Payment Summary (EPS) and Construction Industry Scheme (CIS) Suffered
If you're a subcontractor, you can reclaim CIS tax deductions made by your clients. To do this, submit an EPS each month to HMRC, listing CIS deductions for the year.
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