Install HMRC update to ensure correct NI deductions
The primary Class 1 NI threshold will increase on 6 July. How can employers using HMRC's Basic PAYE Tools ensure the change is reflected in their processing?
The Spring Statement included the announcement that the government was increasing the primary Class 1 NI threshold to £12,570. However, the change is convoluted as it will only take place from 6 July, meaning that the first three months of the payroll year had a lower (£9,880) threshold in place. We are just over a week away from the change date. If the employer uses third-party software to operater PAYE each month, their provider should have given them information on how to update the software to enact the increase. However, those that use HMRC’s Basic PAYE Tools (suitable for small employers, but not accountants) will need to remember to download the updated version on or after 6 July. The correct version will be 22.1 and will be available here.
Related Topics
-
Don’t overlook the partial exemption annual adjustment
As VAT year ends approach for many businesses, HMRC’s guidance highlights the need to carry out the partial exemption annual adjustment. This is often overlooked but can have a direct impact on recoverable VAT. What do you need to check?
-
MONTHLY FOCUS: USING YOUR COMPANY TO DIVERT INCOME TO FAMILY MEMBERS
Operating a business through a limited company is less tax-efficient than it used to be. However, it can still be a very useful way of diverting income to other family members. In this Monthly Focus, we look at the methods, and associated considerations, involved in doing this.
-
HMRC updates guidance on information notices
HMRC has updated its Compliance Handbook guidance on the use of information notices, with changes made on 18 March 2026. The revisions clarify how HMRC should request information during enquiries and place greater emphasis on proportionality. What does this mean in practice?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.