Statutory Sick Pay Changes from 6 April 2026 – What You Need to Know

Statutory Sick Pay Changes from 6 April 2026 – What You Need to Know

Apr 3, 2026 | Bookkeeping, Payroll

From 6 April 2026, some important changes to Statutory Sick Pay (SSP) will come into effect. If you’re an employer, it’s worth understanding what’s changing and how it might affect you.

Don’t worry—this guide keeps things simple and clear.

What’s Changing in April 2026?

The key changes coming into effect are:

1. SSP will be payable from Day 1 of sickness

Currently, employees only receive SSP from the fourth day of being off sick. The first three days are known as “waiting days” and are usually unpaid (unless the employer chooses to pay them).

From 6 April 2026, this will change:

·  SSP will be paid from the first day an employee is off sick
·  The three “waiting days” will be removed

2. Removal of the Lower Earnings Limit

All employees, no matter how few hours they work and regardless of their earnings, will now have access to SSP.

3. Payment Calculation

Employees will receive 80% of their average weekly earnings (AWE) or the flat rate of £123.25 per week, whichever is the lower. Your payroll software will become your best friend when calculations need to be made.

What This Means for Employers

·         More employees may qualify for SSP

·         SSP will need to be paid earlier (from day one instead of day four)

·         Review your sickness policies to make sure they reflect the new rules.

·         Update your contracts of employment to include the new sickness policy.

·         Ensure you accurately record all absences

Treat your payroll software with respect

Keeping your payroll software up to date might not seem like a priority, but it plays a big role in making sure everything runs smoothly. Whether you’re an employer or managing payroll for a business, payroll software will play a pivotal role in ensuring correct SSP calculations.

If you’re unsure how this will affect your business speak to a qualified bookkeeper or payroll professional ahead of April 2026.

National Living Wage Update 2025: What Business Owners Need to Know

National Living Wage Update 2025: What Business Owners Need to Know

Jan 20, 2025 | All Categories, Payroll

National Living Wage Update 2025: What Business Owners Need to Know

Payslips with some pound coins

As your trusted Bookkeeper, I am here to keep you up to date on the National Living Wage (NLW) and National Minimum Wage (NMW) changes coming in April 2025, as announced in the latest UK budget. Understanding these updates is key to staying compliant and budgeting for potential increases in labour costs.

Key 2025 Wage Updates

From April 2025, the new rates will be:

  • Ages 21 and over: £12.21 per hour
  • Ages 18 to 20: £10.00 per hour
  • Ages 16 to 17: £7.55 per hour
  • Apprentice Rate: £7.55 per hour

These adjustments are intended to help workers manage rising living costs but will increase payroll expenses. Here is how to prepare.

Managing These Changes in Your Business

*    Update Payroll Systems: Before April 2025, It will ensure that your payroll software is updated to reflect the new rates.

*    Budget Adjustments: I will work with you to update your wage budgets, as well as calculate the impacts on your National Insurance Contributions (NICs) and pension contributions.

*    Employee Communication: If you have staff directly impacted by these changes, clear communication can help them understand what to expect and shows that you are proactive about fair pay.

These changes can have a significant impact, but I am here to help you manage the transition smoothly and efficiently. Let’s start preparing early so that your business stays compliant without unexpected budget strains.

For further details, please refer to GOV.UK or feel free to reach out with any questions.

 

 

Book a discovery call

ABOUT SUE

Sue Haynes is the founder of Cactus Bookkeeping and helps business owners
with all aspects of Bookkeeping to save them time so they can concentrate on running their
business. Sue is licensed, regulated and supported by the Institute of Certified Bookkeepers (ICB)

Book a discovery call

 

 

 

Payroll Forms – Which Form and When to Use It

Payroll Forms – Which Form and When to Use It

Dec 17, 2024 | All Categories, Payroll

Payroll Forms – Which Form and When to Use It

Keyboard with a blue payroll key that has a finger on it

If you are running your own payroll, there are quite a few payroll forms you need to be aware of to ensure tax compliance.

Payslip

An employer must provide an employee with a payslip each payday, and it must show:

  • Earnings before and after deductions
  • The amount of any deductions, such as tax, National Insurance, and other relevant payroll deductions, as these may change each time a payment is made.
  • The number of hours worked, if pay varies depending on the time worked.

P11D Form

Form P11D is used if an employee received any taxable benefits in kind, such as a company car, interest-free loans, or medical insurance, during the year. This form summarizes all the benefits in kind received during the tax year.

  • P11D forms must be provided to the employee by 6 July following the end of the tax year (5 April).

P60 Form

The P60 is a summary of an employee’s payslips for the year. It shows the total pay, and the total tax and National Insurance taken from it.

  • P60 forms must be given to an employee by 31 May after the end of the tax year (5 April).
  • The only circumstance where an employer is not required to issue a P60 is if the employee left employment during the tax year. This is because all the necessary information would have been included on a P45.

P45 Form

A P45 must be issued when an employee has left the company. This document shows how much tax has been paid so far in the tax year (6th April to 5th April).

Starter Checklist

If a new member of staff cannot provide a P45 from a previous job, they will have to complete a Starter Checklist. This form will allow the employer to work out an appropriate tax code to use when paying the new employee for the first time.

If you are unsure about running your own payroll, or it’s just not your thing, book a discovery call to see how I can help with payroll management.

 

 

Book a discovery call

ABOUT SUE

Sue Haynes is the founder of Cactus Bookkeeping and helps business owners
with all aspects of Bookkeeping to save them time so they can concentrate on running their
business. Sue is licensed, regulated and supported by the Institute of Certified Bookkeepers (ICB)

Book a discovery call

 

 

 

What can an employee claim whilst on jury service

What can an employee claim whilst on jury service

Oct 21, 2024 | All Categories, Payroll

What can an employee claim whilst on jury service

pencil and wage slip

As an employee it’s important to note that your employer is not required to pay your wages whilst you are on jury service.

If your employer has chosen not to pay you whilst you are on jury service, you can claim a loss of earnings allowance from the court. To do this your employer will need to complete a “loss of earnings form” (https://bit.ly/JuryServiceClaim) and you will need to take it with you on your first day of jury service.

How much you can claim to cover loss of earnings and care or childcare costs outside of your usual arrangements, depends on the length of your jury service and how many hours you spend at court each day:

  • The amount starts at £32.47 per day if you are at court up to 4 hours or less, and then £64.95 if you are at court over four hours,
  • £5.71 per day for food and drink up to 10 hours, over 10 hours a day you can claim £12.17 per day,
  • the cost of travel to and from court.

If your jury service lasts longer than 10 working days, the amount you can claim increases up to:

  • £129.91 a day if you spend more than 4 hours at court,
  • £64.95 a day if you spend 4 hours or less at court.

 You will be advised how to claim expenses after your jury service has ended.

 Your employer must allow you time off for jury service. However, if your absence would seriously harm the business, your employer will need to provide you with a letter explaining why.  Jury service can only be delayed once in a 12-month period, so if you were called up again in that period you would have to attend.

 

Note If you are self-employed, you can obtain insurance cover for jury service.

 

 

Book a discovery call

ABOUT SUE

Sue Haynes is the founder of Cactus Bookkeeping and helps business owners
with all aspects of Bookkeeping to save them time so they can concentrate on running their
business. Sue is licensed, regulated and supported by the Institute of Certified Bookkeepers (ICB)

Book a discovery call

 

 

 

Minimum Wage, Statutory Pay and Deduction Thresholds 2024-25

Minimum Wage, Statutory Pay and Deduction Thresholds 2024-25

Mar 18, 2024 | National Minimum Wage, Payroll

Minimum Wage, Statutory Pay and Deduction Thresholds 2024-25

Picture of graph called payroll with a magnifying glass

Minimum wage rates change on 1st April each year so it’s vitally important you are aware of the new rates and ensure you have checked your payroll software is up to date to ensure wages are calculated using the correct rates.

The hourly rate for the minimum wage depends on age and whether you are an apprentice. You must be at least:

  • school leaving age to get the National Minimum Wage
  • From 1 April 2024, workers aged 21 and over will be entitled to the National Living Wage – the minimum wage apply for workers aged 20 and under

Minimum Wage

Rate from 1 April 2023 Rate from 1 April 2024 Increase
National Living Wage (NLW)
for workers 21 and over		 £10.42 £11.44 9.8%
18-20 year old rate (NMW) £7.49 £8.60 14.8%
16-17 year old rate (NMW) £5.28 £6.40 21.2%
Apprentice rate £5.28 £6.40 21.2%

 

 Personal Allowance & Income Tax

The amount of Income Tax you need to deduct from your employees’ wages depends on how much they earn and how much of their taxable income is above their personal allowance and which tax band it falls into.

  • Personal Allowance: 0% tax on earning up to £12,570.
  • The standard tax code is 1257L.
  • 20% tax is due on earnings between £12,571 and £50,270.
  • 40% tax is due on earnings between £50,271 and £125,140.
  • 45% tax is due on earnings more than £125,140.

Emergency tax codes from 6th April 2024 are as follows:

  • 1257L W1
  • 1257L M1
  • 1257L X

Statutory Pay Rates

From 6th April 2024 Statutory Sick Pay (SSP) is £116.75 per week, with the amount due based on the number of working days in the week.

From 7th April 2024 the following statutory payments increase to £184.01 per week or 90% of average weekly earnings (AWE), whichever is the lower:

  • Statutory Maternity/Adoption Pay – eligible employees will receive up to 39 weeks of SMP/SAP at 90% of their average weekly earnings before tax – for the first 6 weeks of their leave, followed by £184.03 or 90% of their average weekly earnings (whichever is lower) – for the remaining 33 weeks of their leave.
  • Statutory Paternity Pay
  • Statutory Shared Parental Pay
  • Statutory Adoption Pay
  • Statutory Bereavement Pay

For further information about payroll rates for 2024-2025 visit the government website

National Minimum Wage and National Living Wage rates – GOV.UK (www.gov.uk)

Running your own payroll can be tricky, especially as you have to be sure you’re paying both your employees and HMRC the correct amount. If you’re worried about running payroll, why not outsource? We can take the stress away of payment deadlines and you can be sure you’re paying both your employees and HMRC correctly.

 

 

Book a discovery call

ABOUT SUE

Sue Haynes is the founder of Cactus Bookkeeping and helps business owners
with all aspects of Bookkeeping to save them time so they can concentrate on running their
business. Sue is licensed, regulated and supported by the Institute of Certified Bookkeepers (ICB)

Book a discovery call

 

 

 

The benefits of outsourcing your payroll

The benefits of outsourcing your payroll

Jan 1, 2024 | Bookkeeping, Payroll

The benefits of outsourcing your payroll

payslips with coins and notes

Running your own payroll? How confident are you that you have a handle on everything?

Now don’t get me wrong there is some great payroll software out there, 𝘽𝙐𝙏 would you recognise if something didn’t quite look right and know how to check it? It only takes one small mistake to drastically alter the outcome of someone’s wages.

No matter what your payroll frequency, there is a lot you need to consider.

  • Checking for any tax code notifications.
  • Check your employees are being paid the correct amount, not only for the work they have done but also for their age.
  • Should any employees be in an auto enrolment pension scheme?
  • Do you have an apprentice, their pay can be quite confusing, because the minimum apprenticeship wage is linked to their age and how long they have been an apprentice.
  • Correctly calculating their starting / leaving pay.
  • Calculate and record holiday entitlement.
  • Understanding when to use a P45 or P46.
  • And that is before you factor in statutory pay and leave payments, which to be honest, can get complicated.

Having done payroll for several years I know it doesn’t take much for even the most straight forward payroll to get a little complicated, especially if we have to start considering SSP, SMP or pension schemes!!

Your software is only as good as the information entered into it. I’m sure no one wants to end up inadvertently paying their employees incorrectly. If you’ve been struggling and unsure of anything payroll related, have you ever thought of outsourcing? Yes, there is a cost to outsourcing but what about the benefits?

  • Time – have you ever worked out how much of your time is spent on payroll? Remember, your time is not free, could your time be better spent on your business, or would it offer you a little timeout?
  • Stress – I do payroll for a living and sometimes even I get stressed, what about you? Dealing with HMRC whether it be tax or payroll can be stressful, it doesn’t have to be.
  • Money – late payments, auto-enrolment failures, minimum wage non-compliance can all incur fines, but this can be avoided.

Outsourcing means you no longer have to worry about getting it right. A qualified payroll professional will ensure your payroll is processed correctly based on the information provided. They will take care of pay rate increases, pension opt in/opt out, statutory payments, holiday entitlement and act as your payroll agent with HMRC. This all helps to reduce the risk of errors and ensure compliance.

If this all sounds like a huge sigh of relief and you want to find out more, please get in touch.

 

 

Book a discovery call

ABOUT SUE

Sue Haynes is the founder of Cactus Bookkeeping and helps business owners
with all aspects of Bookkeeping to save them time so they can concentrate on running their
business. Sue is licensed, regulated and supported by the Institute of Certified Bookkeepers (ICB)

Book a discovery call