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Tax Year 2025-26 Updates

FastTrack360 Version 12 Online Help

Tax Year 2025-26 Updates

It is that all important time of year for you to get ready for the statutory changes from 6 April 2025.

The changes that have been implemented are summarized below. For further information, click on the expandable sections for the relevant subject matter.

Please ensure that you follow the Tax Year End Procedure before you start processing your final period of the current tax year.

Update

Short Description

Update

Short Description

Statutory Parameters for 2025/2026 tax year

The statutory parameters for tax year 2025 to 2026.

P60 version for 2024/2025 tax year

P60 layout has not changed from 2023 to 2024 tax year.

Scottish EA rates and thresholds

Scottish EA rates and thresholds have changed.

Workplace postcode

A workplace postcode must be submitted to HMRC on an FPS if payees work in a freeport or investment zone area.

Statutory Neonatal Care Pay/Leave

An additional statutory payment has been added to allow parents extra time and money if a child receives neonatal care.

Statutory Parameters for 2025/2026 Tax Year

The breakdown of all UK statutory parameters for each tax year can be found here.

Tax Bands/Tax Rates

The tax rates and bands for England/Northern Ireland, Wales have not changed from the previous tax year.

The tax rates and bands have changed for Scotland.

Threshold

2024/2025

2025/2026

Rate %

Threshold

2024/2025

2025/2026

Rate %

England/Northern Ireland/Wales

Basic

1-37700

1-37700

20

Higher

37701 - 125140

37701 - 125140

40

Additional Rate

125141 >

125141 >

45

Scotland

Starter Rate

1-2306

1-2827

19

Basic Rate

2307 - 13991

2827 - 14921

20

Intermediate Rate

13992 - 31092

14922 - 31092

21

Higher Rate

31093 - 62430

31093 - 62430

42

Advanced Rate

62431 - 125140

62431 - 125140

45

Top Rate

125141 >

125141 >

48

Emergency Tax Code

The Emergency Tax Code of 1257L has not changed.

Tax Code Uplift

There is no tax code uplift for 2025/26 tax year.

National Insurance Thresholds/Rates

The National Insurance Thresholds have been updated for the employer contribution whereby the Secondary Threshold now precedes the Lower Earnings Limit. Please refer to https://fasttrackservice.atlassian.net/wiki/spaces/FV1OH/pages/2553282761 page for details.

Student Loan/Postgraduate Loan

The percentage deduction rates have not changed. Plan Type 1, 2 and 4 threshold values have changed.

Loan Type

2024/2025

2025/2026

% Rate

Loan Type

2024/2025

2025/2026

% Rate

Student Loan Plan Type 1

24990

26065

9

Student Loan Plan Type 2

27295

28470

9

Student Loan Plan Type 4

31395

32745

9

Postgraduate Loan

21000

21000

6

Statutory Payments

Statutory Payments have changed.

Statutory Payment

2024/2025

2025/2026

Statutory Payment

2024/2025

2025/2026

Statutory Maternity Pay (SMP)

184.03

187.18

Statutory Adoption Pay (SAP)

184.03

187.18

Statutory Paternity Pay (SPP)

184.03

187.18

Shared Parental Pay (ShPP)

184.03

187.18

Statutory Parental Bereavement Pay (SPBP)

184.03

187.18

Statutory Neonatal Pay (SNCP)

 

187.18

Statutory Sick Pay

116.75

118.75

When you download the new tax year and import the statutory parameters, FastTrack360 will automatically up-rate existing statutory values against payees who have SMP/SAP/SPP/ShPP payments determined for the new tax year.  This is currently not available for Statutory Parental Bereavement Pay as these values are applied directly in the pay batch.

For SSP, during the pay batch process, the FastTrack360 will determine the change in the daily SSP rate when a sick period spans the 2 tax years.

Apprenticeship Levy

Apprenticeship Levy of 0.5% and annual allowance of £15000 has not changed.

Employment Allowance

Employment Allowance has increased to £10500.

Statutory Payment Recovery and Compensation

Statutory Payment Recovery remains as 92%.

For small employers, the Statutory Payment Recovery remains as 100% but the small employer compensation increases to 8.50%

Pension Thresholds

No change to the pension thresholds.

AEO Rates

Scottish Earnings Arrestment bandings has been uplifted. Please click here to view the band values.

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