Pecunia Pro Limited

09/10/2026

HMRC has recently published a handy breakdown on how the State Pension and tax actually work together, worth knowing whether you're approaching retirement, or supporting employees who are.

Five things worth knowing:
📅 State Pension age is rising from 66 to 67 between April 2026 and March 2028, phased by date of birth
💷 State Pension counts as taxable income, even though tax isn't deducted at the point it's paid
🧾 If someone's still working or has a private pension, HMRC will usually collect any tax owed through PAYE automatically
📋 Most people need 10 qualifying years on their National Insurance record to receive some new State Pension
🛑 National Insurance stops once someone reaches State Pension age, even if they carry on working

Full detail from HMRC's Tax Confident campaign, via The Chartered Institute of Payroll Professionals (CIPP), here: https://www.cipp.org.uk/resources/news/state-pension-tax.html

Got questions about how State Pension interacts with your payroll or tax position? Get in touch with our team today on 020 8143 1529 or [email protected], we're happy to help.

It’s Pension Awareness Week, the perfect time to build understanding of pensions and tax.

06/10/2026

Auto-enrolment compliance doesn't end once a pension scheme is set up, it's an ongoing responsibility, and it's one of the most common places we see things quietly go wrong.

A few red flags worth checking for in your own business:
⚠️ Are contributions being recalculated correctly every time someone's pay changes?
⏰ Are new starters actually being assessed and enrolled on time, every time?
📩 Are your pension communications to staff up to date and compliant?

Get any of these wrong, and the risk isn't just a fine, it's employees missing out on pension contributions they're legally entitled to.

Let our payroll team take a proper look. Call us on 020 8143 1529 or email [email protected], and we'll help make sure your pension setup is watertight.

02/10/2026

Payroll legislation rarely stands still. Auto-enrolment changes, evolving NI thresholds, and now AI creeping into payroll processing, the businesses that cope best aren't scrambling to catch up, they've got a partner already tracking it for them.

Worth asking yourself:
🤔 Is your payroll actually compliant, or just "probably fine"?
🔍 Who's responsible for catching the next change before it hits your staff's pay?
📋 Could you answer confidently if HMRC queried something tomorrow?

If any of those gave you pause, it's worth a second opinion.

Get in touch with our payroll team today on 020 8143 1529 or [email protected] to find out how we can help you prepare.

01/10/2026

If you voluntarily payroll benefits in kind, HMRC has just confirmed two updates that could affect how you handle Class 1A NICs from 2027.

From 6 April 2027, any benefit in kind that's voluntarily payrolled must also have its associated Class 1A NICs payrolled in real time, you can no longer payroll the Income Tax and report the NICs separately at year end. Employers will also be able to voluntarily except Globally Mobile Employees from mandatory payrolling, continuing to use P11D and P11D(b) reporting for them instead.

Worth noting: Class 1A NIC on voluntarily payrolled benefits for the 2026/27 tax year is still due via P11D(b) by 6 July 2027, so this isn't a change to act on immediately, but it is one to build into your planning now.

Full detail from The Chartered Institute of Payroll Professionals (CIPP) here: https://www.cipp.org.uk/resources/news/mandatory-payrolling-updates-released.html

Not sure how this affects your current benefits in kind setup? Get in touch with our payroll team today on 020 8143 1529 or [email protected], we'll help you get ahead of it before it lands.

Updates on Class 1A NICs and Globally Mobile Employees confirmed.

21/09/2026

Could Employer NIC exemptions soon extend to all under-25s? MPs are calling for it.

The Work and Pensions Committee wants no Class 1 NICs on under-25s earning up to £967 a week, extending the 0% rate currently limited to apprentices under 25 and employees under 21.

The push follows concerns about youth unemployment, with the 2024 Autumn Budget's NIC changes (up from 13.8% to 15%, threshold down to £5,000) flagged as slowing recruitment for young people.

Not Government policy yet, but one worth watching if you employ younger staff.

As reported by The Chartered Institute of Payroll Professionals (CIPP)

🔗 https://www.cipp.org.uk/resources/news/expansion-of-employer-nic-exemption-for-under-25s.html

Want to understand what a change like this could mean for your payroll costs? Get in touch.

📧 [email protected]
📞 020 8143 1529

The Work and Pensions Committee has made recommendations to Government.

17/09/2026

Did you know mandatory ethnicity and disability pay gap reporting has now been confirmed for large UK employers?

The government's response to the consultation was published on 25 March 2026. Employers with 250 or more employees will be required to report both ethnicity and disability pay gap data.

Since April 2026, employers have been encouraged to produce voluntary action plans alongside their reporting. These action plans will become mandatory from 2027.

Whether your organisation is above or below the reporting threshold, now is a good time to review your workforce data, identify any gaps and prepare for the changes ahead.

Get in touch with our payroll team today on 020 8143 1529 or [email protected] to find out how we can help you prepare.

15/09/2026

Ever had an employee panic because their second payslip shows a different tax code? HMRC's new guidance explains why that's usually normal.

Everyone gets one Personal Allowance (£12,570 for 2026/27), no matter how many jobs they have. It goes against your main job, so second incomes are often taxed from the first pound under codes like BR, D0 or D1.

That's why two payslips can look very different, and why employees sometimes assume something's wrong when it isn't.

Our latest blog breaks down what employers need to know.

🔗 https://pecuniapro.co.uk/second-jobs-multiple-incomes-and-career-changes/

Getting employee questions about tax codes or multiple incomes? Get in touch.

📧 [email protected]
📞 020 8143 1529

HMRC has published new guidance explaining how tax works for people with more than one source of income

11/09/2026

Net Pay Arrangement or Relief at Source? Even experienced payroll pros pause on this one.

Both give pension tax relief, just via different routes. NPA gives relief through payroll before tax is calculated. RAS gives relief through the pension provider, who claims it back from HMRC after tax.

CIPP's dinner analogy explains it best: Nigel gets his £20 discount applied before he pays, so he hands over £80. Rosie pays £80 herself, and the restaurant claims her £20 discount from HMRC afterwards. Same final cost, different route.

The easiest way to tell them apart: ask who provides the tax relief. Payroll means NPA. Pension provider means RAS.

Great explainer from The Chartered Institute of Payroll Professionals (CIPP)

🔗 https://www.cipp.org.uk/resources/news/the-great-pension-tax-relief-debate.html

Not sure which arrangement your scheme uses? Get in touch.

📧 [email protected]
📞 020 8143 1529

Why they create so much confusion.

08/09/2026

Good news if you've been dreading mandatory payrolling of Benefits in Kind. HMRC has confirmed it's happening in two phases, not all at once.

From April 2027, only company cars and fuel, vans and van fuel, and private medical benefits move to mandatory payrolling. Everything else, gym memberships, professional subscriptions, interest-free loans and similar, stays on P11D or voluntary payrolling for now, with most of it following from April 2028.

The change comes after feedback from payroll software providers and bodies like the CIPP about the scale of the original plan, which would have needed over 100 data fields on the Full Payment Submission. Phase 1 only needs 32.

If you'd already planned to voluntarily payroll everything, you can carry on. Only the three Phase 1 benefits need the new FPS fields.

Our latest blog explains what to check now and what can wait.

🔗 https://pecuniapro.co.uk/mandatory-payrolling-of-benefits/

Want to know exactly which of your benefits fall into Phase 1? Get in touch.

📧 [email protected]
📞 020 8143 1529

MRC has just updated its interim guidance on mandatory payrolling of benefits in kind (BiKs), and it's good news

03/09/2026

Getting pension tax relief wrong could be quietly costing your lower-paid employees money.

Low Incomes Tax Reform Group (LITRG) has flagged a recurring issue: employers applying the wrong tax relief method to their workplace pension.

Under a Net Pay Arrangement, relief only benefits employees who pay Income Tax. Under Relief at Source, lower earners still get basic rate relief even if they pay none.

With a new pension top-up scheme for lower earners coming, getting this wrong matters more than ever.

Our latest blog explains the difference and what to check.

🔗 https://pecuniapro.co.uk/net-pay-or-relief-at-source-why-pension-tax-relief-errors-are-under-the-spotlight/

Want a second opinion on your pension setup? Get in touch.

📧 [email protected]
📞 020 8143 1529

A press release from the Low Incomes Tax Reform Group (LITRG) has put a spotlight on a problem we see more often than you'd expect