New employee starter checklist

Setting up the correct tax code when a new employee starts is essential, as even small payroll errors can lead to unnecessary tax overpayments and avoidable complications later on.
When hiring a new employee, employers need to ensure the correct tax code and starter declaration are set up in their
PAYE rules for labour supply chains (umbrella companies)

From 6 April 2026, significant changes to PAYE rules will affect umbrella companies, recruitment agencies, and end clients, increasing shared responsibility for payroll compliance across labour supply chains.
Umbrella companies are often used by freelancers, contractors, and temporary workers who
Starting or changing jobs

Providing the right information when you start a new job helps ensure your tax code is correct from the first pay day and avoids the risk of paying too much tax.
When starting a new job or taking on additional employment, your new employer will usually send your income details to HMRC, which are
Expanding workplace benefits relief

From 6 April 2026, new tax rules will expand workplace benefits relief. The changes will simplify the treatment of certain low-value workplace benefits-in-kind (BIKs), affecting both employers and employees.
The changes extend existing exemptions for eye tests, flu vaccinations and home working
Autumn Budget 2025 – Minimum Wage increases

The Chancellor of the Exchequer, Rachel Reeves announced increases to the Minimum Wage rates on the eve of the Budget. The Chancellor confirmed that the government has accepted in full the proposals of the Low Pay Commission (LPC) for increasing minimum wage rates from 1 April 2026.The National
Claim flat rate expenses for work clothing and tools

If you use your own money to buy items for work, you may be eligible to claim tax relief as long as the items are essential for your job and are used solely for work purposes.
Flat rate expenses (also known as a flat rate deduction) allows you to claim tax relief for a fixed amount each tax year to
Enforcement of the minimum wage

The Department for Business & Trade has recently published a report that outlines the government’s enforcement of the National Minimum Wage (NMW) and National Living Wage (NLW) for the 2024–25 financial year.The Government is committed to ensuring that all workers receive the minimum wage to
Claiming for working at home

Employees who are working at home may be entitled to claim tax relief on certain work-related expenses. Where such costs are not reimbursed by the employer, either by direct payment or an allowance, employees can submit a claim for tax relief directly to HMRC.
Eligibility to claim tax relief
The Employment Allowance – what you can claim

As of April 2025, more employers can claim the increased £10,500 Employment Allowance thanks to relaxed eligibility rules. This increase will help employers reduce some of the impact of the recent increases in employers’ NIC.
The Employment Allowance allows eligible employers to reduce their
Use HMRC app and be job-ready this summer

Starting work this summer? Download the free HMRC app to get your NI number, check your tax code and stay on the right pay.
Young people finishing exams and entering the job market this summer are being urged by HMRC to download the HMRC app. The app is a free tool that can be used to provide quick