The end of the tax year is upon us but what changes are being made?

Major changes to the tax year for 2026/7 include:

• Annual Leave: Employers must retain annual leave records for six years ensuring that the law is complied with. Statutory annual leave remains at 5.6 weeks (28 days for full-time workers).
• Statutory Sick Pay (SSP): Currently SSP can be paid within three days, the new tax year requires SSP to be payable from day one. The Lower Earnings Limit has been removed and is paid at the lower of either 80% of the employee’s earnings or the increased weekly rate of £123.25.
• Maternity and Paternity Leave: Changes include removing the one-year qualifying period for unpaid parental leave, the 26-week qualifying period for paternity leave, and the restriction preventing employees from taking paternity leave or receiving statutory paternity pay following a period of shared parental leave.
• National Insurance (NI): Employer Rates increase from 13.8% to 15% and Employer Threshold decreases from £9100 to £5000. Main Class 1 NI rates remain the same (8% for employees, 15% for employers).
• National Living Wage: Increases to £12.71 per hour for workers over 21 years of age.

Ensure you make no mistakes by quickly and easily exporting all of the necessary data needed to calculate payroll, including attendance, absence, overtime, and TOIL. Kelio’s payroll software collates payroll data for individual employees, automatically checking and calculating attendance and absence before transferring directly to one of 160 fully compatible payroll packages, including Sage.

To book a meeting with our sales team, please email enquiries@kelio.co.uk or call 01442 418800