Every year, we commit to keeping SelectPay compliant with the HMRC legislative changes. We've updated SelectPay with the available changes, ready for the new tax year.
Thresholds not changing
The following thresholds are staying the same in the 2025/26 tax year:
Standard UK and Welsh PAYE.
Employees NIC rate.
Post graduate loans.
Auto Enrolment.
📌Note: HMRC no longer accept paper forms and you must complete any adjustment online.
New thresholds
The following thresholds are updating in the 2025/26 tax year:
PAYE Scottish starter and basic rate bands increased.
LEL threshold increasing from £123 to £125.
Employers NIC rate increased to 15% and Secondary Threshold reduced to £96 per week.
Class 1A NIC increased to 15% (benefits in kind and termination and sporting testimonials).
Company Car Fuel Benefit increases from £27.800 to £28,200.
Company Car tax increases by 1%.
Employment Allowance raised from £5,000 to £10,500 and eligibility threshold removed.
Student Loan thresholds increased.
Sick Pay rate increased to £118.75, and earnings thresholds increased to match LEL.
Parental Pay rate increased to £187.18, and earnings thresholds increased to match LEL.
Small Employers NIC Compensation Relief increased from 3% to 8.5%.
NMW rates increased (bandings remain the same).
Scottish Earnings Arrestment bands and rates changed.
Teachers and Local Government Pension Schemes (LGPS)
For customers using the Teachers’ Pension (TPS) or LGPS banding wizards, these parameters aren't yet available. We plan to include this in a separate update in March.
HMRC RTI schema changes
To ensure that SelectPay is ready to send and receive data to and from HMRC for the new tax year, we updated the RTI submissions. You can't see these changes in the front end, but they're fundamental to the submission of messages to HMRC.