For employers and employees, one of the most notable changes in 2025/26 is the increase in Employers’ National Insurance Contributions (NICs), which will rise from 13.8% to 15%.
This change means businesses will pay more in NICs for each employee earning above the threshold, increasing payroll costs across various sectors.
Alongside this, a new secondary threshold has been introduced, set at £5,000 per year, which will impact the way contributions are calculated for lower-earning employees.
Statutory payments are also increasing in line with inflation. Statutory family-related leave, such as maternity and paternity pay, will rise to £187.18 per week, providing slightly higher financial support for eligible employees.
Similarly, statutory sick pay is increasing from £116.75 to £118.75 per week, which employers must factor into their payroll calculations.
Company car tax is another area seeing an adjustment, with a 1% increase across all users, making it slightly more expensive for businesses and employees with company-provided vehicles.
These changes will require careful payroll planning to ensure compliance and budget adjustments for businesses that offer company cars as part of their employee benefits.