Riddingtons Payroll keeps contractors, agencies, and businesses ahead of evolving compliance demands. As of March 2026, major changes like Statutory Sick Pay (SSP) reforms and National Minimum Wage (NMW) hikes are reshaping payroll operations.
From April 6, 2026, SSP becomes payable from day one of absence, removing the three unpaid waiting days and the Lower Earnings Limit. The rate rises to £123.25 weekly or 80% of normal earnings (whichever is lower), increasing employer costs but enhancing worker support. Businesses must update payroll systems now to handle these calculations accurately and avoid penalties.
NMW and National Living Wage rise on April 1, 2026: 21+ to £12.71/hour (up 4.1%), 18-20 to £10.85 (up 8.5%), and under-18/apprentices to £8.00 (up 6%). Frozen tax/NIC thresholds until 2030-31 heighten minimum wage compliance risks, especially with salary sacrifice schemes. Review contracts and payroll software to ensure adherence.
From April 2026, "small company" status for IR35 uses higher limits: turnover ≤£15M, balance sheet ≤£7.5M, ≤50 employees (two of three). More firms qualify as small, shifting IR35 responsibility to contractors' PSCs and easing client burdens. Agencies should audit suppliers and PSLs accordingly.
Joint & Several Liability (JSL) from April 6, 2026, holds agencies/end-clients liable for umbrella companies' unpaid PAYE/NICs. This squeezes non-compliant providers, urging tighter PSL checks and transitions to verified partners. Riddingtons Payroll, with strong accreditations, offers seamless compliance support.
CIS aligns with VAT from April 2026: HMRC can deny gross payment status or pursue tax/penalties for known fraud links, extending reapplication to five years. Making Tax Digital advances demand real-time FPS submissions and digital records. Automation minimizes errors in CIS deductions and reporting.
ONS/HMRC data shows stable payroll employment but rising compliance focus amid reforms. Pension auto-enrolment rises to 4% employer/5% employee minimums. Proactive outsourcing like Riddingtons ensures accuracy in this high-stakes environment.
