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.
Employers' NIC rates and thresholds.
Postgraduate loans.
Class 1A NIC.
Employment allowance.
Scottish earnings arrestment bands.
New thresholds
The following thresholds are updating in the 2026/27 tax year:
PAYE Scottish starter and basic rate bands increased.
LEL thresholds are increasing from £125 to £129.
Sick pay rate increased to £123.25; the earnings threshold has been removed. A new 80% lower rate has been added.
Parental pay increased to £194.32, earnings thresholds increased to match LEL.
Student loan thresholds increased.
NMW rates increased, and bandings remain the same.
Company car fuel benefit increased from £28,00 to £29,200.
Company car tax increased by 1%.
Small employers' NIC compensation relief increased to 9%.