The National Living Wage rises to £13.21 an hour from April 2027, while income tax bands and most National Insurance thresholds stay frozen.
This free guide puts every confirmed 2027/28 rate in one place, flags what’s still to be confirmed, and gives HR and payroll teams a clear list of what to do before April.
Download it now using the form opposite.
A quiet Budget for rates. A busy year for payroll
Very little has changed on rates, thresholds and limits. But with mandatory payrolling of benefits in kind arriving in April 2027 and the Employment Rights Act 2025 still bedding in, there’s plenty to plan for. Think of this Budget as breathing space. The guide helps you use it well.
What's inside the guide
- Every 2027/28 rate in one place: income tax bands for the rest of the UK and Scotland, National Insurance thresholds, student loans, statutory payments and SSP daily rates
- National Minimum Wage and National Living Wage rates from April 2027, and what a 3.9% rise means for budgets, salary sacrifice and AWE calculations
- The new Pension Tax Allowance, and the one thing it changes for payroll: new tax codes from HMRC
- Benefits and expenses: mileage rates, flat rate expense reforms, company car and van charges, and changes for electric vehicles
- Payrolling benefits in kind from April 2027, including real-time Class 1A NIC
- Separate next-step checklists for payroll professionals and HR teams
Why it matters now
The National Living Wage rises 50p to £13.21 an hour for workers aged 21 and over, and every minimum wage band rises 3.9%. Recruitment plans, headcount and 2027 salary reviews may all need a fresh look, especially in sectors like care and hospitality.
When the minimum wage rises, some salary sacrifice arrangements can take pay below the legal floor. The guide shows payroll what to check, and why NMW is a key area for review by HMRC.
From April 2027, payrolling benefits in kind becomes mandatory and Class 1A NIC goes real-time on all payrolled benefits. Registration and de-registration with HMRC opens from 5 November. Is your benefits data detailed enough?
Who this guide is for
- Payroll managers and specialists preparing for April 2027
- HR directors and heads of people replanning 2027 budgets
- Finance teams forecasting workforce costs
The guide covers the rest of the UK and Scotland. Scottish rates for 2027/28 will be confirmed after the Scottish Budget on 3 December.
All information is correct at time of publication. Please check government and HMRC sources before making final decisions and calculation about payroll.
Every Budget ends up in someone’s payroll run
When HMRC issues new tax codes, Ciphr Payroll pulls them straight from the HMRC gateway and applies them, so nobody keys them in by hand. When someone turns 21 and their NI category should change, it flags it. Every action sits in a full audit trail. And because payroll is native to the Ciphr suite, what changes in HR flows into payroll without re-keying.
It’s why Ciphr Payroll was named CIPP Software Product of the Year 2025.