YOUR CIPP | 7
Automatic enrolment: earnings trigger and qualifying earnings bands for 2026/27 Each tax year, the Secretary of State is required to review the three thresholds relating to pensions automatic enrolment (AE). Those thresholds are: 1. the AE earnings trigger
2. the lower qualifying earnings threshold 3. the upper qualifying earnings threshold.
The following document provides an analysis of the Department for Work and Pensions’ (DWP’s) work to model changes to these thresholds: https://ow.ly/ ZveR50XW4zG. For 2026/27, the thresholds are to be retained at their current rates, as follows:
Lower limit qualifying earnings band
Upper limit qualifying earnings band
Trigger
Current (2025/26) Proposed (2026/27)
£10,000 £10,000
£6,240 £6,240
£50,270 £50,270
Payroll News Scottish Budget tax news The Scottish Budget was held on 13 January 2026, and Financial Secretary, Shona Robinson announced changes to the tax bands for 2026/27. In her speech, she Rate Name Income Range Rate Starter rate £12,571* - £16,537 19% Basic rate £16,538 - £29,526 20% Scottish tax brackets for 2026/27
Want to understand the impacts of changes brought from the Employment Rights Act 2025? A new collection of impact assessments and analytical documents relating to the Employment Rights Act 2025 has been made available, and can be accessed here: https://ow.ly/MTu250XW4Lu. The documents come from a variety of Government departments, including the Department for Business and Trade, the Cabinet Office, the Department for Transport and the DWP. They cover everything from flexible working to statutory leave entitlements and bring together the legal, economic and operational implications of the measures included within the Employment Rights Act 2025. Some of the impact assessments pay professionals may be particularly interested in are: l day-one rights for unfair dismissal, paternity leave and unpaid parental leave l new protections for pregnant workers and whistleblowers l zero hours contract reforms, including guaranteed hours and compensation for cancelled shifts l strengthened trade union rights l fair pay agreements in adult social care l changes to Employment Tribunal time limits l amending the right to unpaid bereavement leave to include pregnancy loss l mandatory seafarers’ Charter l removal of the lower earnings limit and the waiting period for statutory sick pay. Each assessment outlines the expected costs, benefits, administrative
confirmed increases to the basic and intermediate tax thresholds, of 7.4%. All other rates will be frozen. The rates and bands in the
Intermediate rate
£29,527 - £43,662
21%
Higher rate
£43,663 - £75,000 £75,001 - £125,140
42% 45% 48%
Advanced rate
Top rate
Over £125,140
table to the right are based on the UK personal allowance, which is £12,570, as confirmed by the UK Government in the 2025 Budget.
For your diary
5 February
Last day of tax month 10
6 February
First day of tax month 11
National Apprenticeship Week
9-15 February
Last day for submitting a real time information employer payment summary (EPS) to apply to tax month 10 Deadline for payment of pay as you earn (PAYE) and National Insurance contributions (NICs) etc to HMRC’s Accounts Office by non-electronic method
19 February
22 February (This is a weekend date)
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
5 March
Last day of tax month 11
6 March
First day of tax month 12
Last day for submitting a real time information EPS to apply to tax month 11 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 March
22 March (This is a weekend date)
impacts and implementation considerations for employers.
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
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