If you employ staff, your 2025/26 payroll on-costs boil down to four moving parts: employer NIC at 15%, PAYE payment on the 22nd, benefits NIC (Class 1A/1B at 15%), and auto-enrolment pensions (min 3% employer on qualifying earnings).
The figures below come straight from HMRC’s “Rates and thresholds for employers 2025 to 2026” and The Pensions Regulator/DWP so you can budget with confidence.
Employer National Insurance (NIC): Rates & Thresholds 2025/26
The employer Class 1 rate is 15% above the Secondary Threshold, as set out in HMRC’s rates & thresholds (Class 1 overview and tables). For the 2025/26 thresholds (weekly / monthly / annual), HMRC lists: ST = £96 / £417 / £5,000. You’ll also see the special 0% upper-secondary bands for qualifying categories (e.g., under-21s, apprentices), which sit alongside the standard letters.
For employee budgeting context, HMRC’s guidance shows the employee NIC main rate (to UEL) and the 2% above UEL; include this when modelling total remuneration. See “National Insurance rates and categories”. GOV.UK
Tip: If eligible, Employment Allowance can reduce your employer NIC bill by up to £10,500, but you must switch it on via EPS (HMRC explains the amount/mechanics in “Rates and thresholds for employers 2025 to 2026”).
For step-by-step setup, read Employment Allowance Explained.
PAYE & RTI: Payment dates you must not miss
HMRC’s “Pay employers’ PAYE” page is the source of truth: pay by the 22nd of the following tax month if paying electronically (19th if by post). Quarterly payers also settle by the 22nd after the quarter (e.g., 22 July for 6 Apr–5 Jul). Late payments can trigger interest/penalties per HMRC’s guidance. GOV.UK
We calendar FPS/EPS and PAYE payments for clients so you only pay what’s actually due, see Payroll Services UK.
Benefits-in-Kind: Class 1A/1B at 15% (and July/Oct cash spikes)
HMRC’s 2025/26 page confirms Class 1A on expenses & benefits is 15%, and Class 1B (PSA) is 15%. HMRC’s “Expenses and benefits: Deadlines” page sets the critical dates: P11D/P11D(b) and Class 1A due by 6/22 July, and PSA tax + Class 1B due by 22 October (online). GOV.UK
Planning ahead? HMRC’s technical note confirms mandatory payrolling of most benefits starts 6 April 2027 (deferred from 2026). It also explains HMRC will remove benefits from tax codes ahead of the change, and that no registration will be needed from 2027 (except for loans and accommodation). GOV.UK
We build 6 July / 22 July / 22 Oct into your 52-week cash forecast so there are no surprises, see Cashflow Forecasting Services.
Workplace Pensions: Minimum contributions & qualifying earnings
The Pensions Regulator is clear: minimum total = 8% of qualifying earnings; employer minimum = 3%. For 2025/26, DWP/TPR maintain QE at £6,240–£50,270 and the auto-enrolment trigger at £10,000; TPR shows the pay-frequency breakdown on its thresholds page. The Pensions Regulator
Scheme rules can calculate on “qualifying earnings” or define “pensionable pay” see TPR’s detailed guidance on contributions and pay reference periods if you’re unsure which base your scheme uses. The Pensions Regulator
National Minimum Wage (from 1 April 2025)
GOV.UK’s National Mininum Wage/National Living Wage rates page lists the current statutory rates: £12.21 (21+), £10.00 (18–20), £7.55 (under 18 & apprentice). Budget for knock-ons to NIC/pension eligibility and overtime. GOV.UK
Student Loans & Postgraduate Loans
For payroll setup, use HMRC’s SL3 deduction tables (2025/26) to apply the current Plan 1/2/4 and Postgraduate Loan thresholds and the 9% / 6% deduction rates. (HMRC updates these tables annually.) GOV.UK
Apprenticeship Levy (if you’re large enough)
HMRC’s “Pay Apprenticeship Levy” page confirms the rules: 0.5% of your pay bill over £3m, with a £15,000 allowance — and connected companies share one allowance (see HMRC’s connected-entities guidance for worked examples and the one-allowance rule). GOV.UK
Worked “cost stack” example (shows the maths)
Scenario: One full-time employee on £30,000 (letter A), no salary sacrifice.
- Employer NIC
NIC-able pay above ST = £30,000 − £5,000 = £25,000 → 15% × £25,000 = £3,750. (Source: HMRC thresholds & 15% rate.) GOV.UK - Auto-enrolment pension (employer 3% on QE)
QE band £6,240–£50,270 → QE for £30k is £23,760 → 3% = £712.80. (Source: TPR/DWP.) The Pensions Regulator - Benefits NIC (illustration)
If you provide £600 private medical, Class 1A = 15% × £600 = £90 payable 22 July online. (Source: HMRC Class 1A rate & deadlines.) GOV.UK - Levy
If your annual pay bill is under £3m, £0; if over £3m, apply 0.5% minus the £15k allowance (shared if connected). (Source: HMRC levy guidance.) GOV.UK
Typical on-cost (no levy): £3,750 + £712.80 + £90 ≈ £4,553 per year.
Want a smaller NIC slice? Check Employment Allowance (up to £10,500) and make sure it’s switched on via EPS from April HMRC’s rates page has the headline figure, and our Employment Allowance Explained post shows the steps.
FAQs
What’s the employer NIC rate in 2025/26?
15% above the Secondary Threshold, per HMRC’s rates page. GOV.UK
What’s the Secondary Threshold?
£5,000/year (≈ £417/month; £96/week) in 2025/26. GOV.UK
When is PAYE due?
22nd of the following month if paying electronically (19th if by post); quarterly payers: 22nd after the quarter. GOV.UK
What’s the minimum employer pension contribution?
3% of qualifying earnings (total 8%). QE £6,240–£50,270; AE trigger £10,000. The Pensions Regulator
Do I pay the Apprenticeship Levy?
Only if your annual pay bill exceeds £3m; rate 0.5% with a £15k allowance shared across connected entities. GOV.UK
What to do next
- Need this run hands-off with RTI/EPS done right and dates calendared? → Payroll Services UK
- Want to cut employer NIC legally? → Employment Allowance Explained
- Deciding salary vs dividends as a director? → Director Pay Guide
- Hate July/Oct cash shocks? → We’ll bake Class 1A/PSA and PAYE due dates into your plan → Cashflow Forecasting Services
Book a 20-minute planning call.
We’ll map your exact NIC, pension and benefits profile, confirm EA eligibility, and drop all HMRC dates into a 52-week forecast so there are no surprises.