Employment Case Law Update November 2025
National Minimum Wage Increase from April 2026 The government has confirmed new National Minimum Wage rates for pay periods starting on or after 1 April 2026. The main adult rate for workers aged 21 and over will rise to £12.71 per hour. The 18 to 20 rate will increase to £10.85 per hour. […]
Payslip Abbreviations UK: Employer Guide
Payslips are a legal document that record pay, deductions and key employment details. For employers and HR professionals, the ability to interpret every element on a payslip is non-negotiable. Under section 8 of the Employment Rights Act 1996, workers are entitled to an itemised pay statement showing gross pay, net pay and each deduction, and […]
Minimum Employer Pension Contribution Guide
Minimum employer pension contributions are a core part of the UK’s workplace pension regime and a statutory obligation under the Pensions Act 2008. Every employer must understand what they are required to pay, how contributions are calculated, and the compliance risks that arise when mistakes occur. Pension contributions cannot be handled casually. They form part […]
IGPS on Payslips Explained for Employers
IGPS is a term that can appear on UK payslips, most often in connection with pension-related deductions processed through employer payroll systems. It is not a statutory label and it does not have a single, fixed industry-wide meaning. Instead, IGPS is typically an internal or system-generated payroll code whose precise meaning depends on how the […]
What is PAYE? Explained for Employers
Pay As You Earn (PAYE) is HMRC’s system for collecting Income Tax and National Insurance contributions from employment income. Employers must operate PAYE on most payments made to employees, directors and certain workers, making it one of the core payroll and HR compliance functions within any UK organisation. A properly managed PAYE process ensures employees […]
NI Contributions: Employer HR Guide
National Insurance (NI) contributions form a central part of the UK payroll framework. Every employer must understand how NI works because it affects pay, statutory benefits, employment costs and overall compliance under PAYE. For HR professionals and business owners, NI is a core payroll function that directly influences employee entitlements and your organisation’s legal obligations. […]
Self Assessment Payslip Guide
Employees often approach HR or business owners when they receive a tax demand under the Self Assessment system, particularly if HMRC issues a Self Assessment payslip. Although the document resembles a payroll instrument, it is generated entirely by HMRC and relates solely to an individual’s personal tax liability. Employees frequently assume the employer is responsible […]
ER Pension on Payslips: Employer Guide
Employers and HR teams often receive queries from employees asking what “ER pension” means on their payslip. The abbreviation is simple but important. “ER” refers to the employer’s pension contribution, a mandatory feature of workplace pensions under the Pensions Act 2008 for eligible staff under the auto-enrolment regime. Understanding how these contributions work, why they […]
Tax Office Reference Number Guide
Employers work with a range of HMRC identifiers, but few are as central to payroll and compliance as the tax office reference number, formally known by HMRC as the employer PAYE reference. It underpins how HMRC recognises the employer, processes payroll submissions, allocates PAYE liabilities and manages correspondence. When HR and payroll teams do not […]
NI Categories for Employers
National Insurance (NI) categories are a core part of payroll compliance. Every employee is assigned an NI category letter that determines the level of National Insurance contributions payable for that role. The category letter reflects factors such as age, apprenticeship status, deferment, employment type, and eligibility for reduced or zero employee contributions. Incorrect classification exposes […]