UK Employment & Payroll Guide: Employment Laws, Payroll & Taxes
Key Law Terms Overview in UK
Interested In Learning More?
Talk to our local compliance specialists to disucess your specific situation:
Including employment, payroll, tax, and ongoing regulatory obligations.
Regulation Updates in UK
EIM21874 - Particular benefits: flu vaccinations
What it is: HMRC has updated EIM21874 to confirm that employer-provided flu vaccinations are exempt from income tax.
What it changes: Employers must reflect the tax exemption for flu vaccination provided benefits in their payroll/PAYE reporting and adjust payroll processing accordingly.
Who is affected:
- Employers who provide flu vaccinations to staff
- Payroll/PAYE administrators within those employers
What employers should do:
- Update payroll processes to reflect the income tax exemption for employer-provided flu vaccinations
- Ensure payroll/PAYE reporting aligns with the tax exemption from the date of the change (2026-05)
Notes: Effective month: 2026-05. Manual verification recommended.
Jobs Guarantee Grant Guidance
What it is: The Jobs Guarantee Grant Guidance updates the Jobs Guarantee scheme and sets grant conditions that impose employer-facing requirements for participation.
What it changes: The update introduces employer obligations related to payroll and payment at the relevant minimum wage, along with certification and reporting duties under the grant funding agreement.
Who is affected:
- Employers participating in the Jobs Guarantee scheme
What employers should do:
- Ensure payroll and payment practices comply with the minimum wage requirements specified in the grant terms.
- Complete and submit the required certification and reporting duties as part of the grant funding agreement.
Notes: Effective month: 2026-05. Manual verification recommended.
Pension Schemes Act 2026
What it is: The Pension Schemes Act 2026 is a UK-wide reform that introduces wide-ranging changes to workplace pension arrangements, including a new Value for Money framework, automatic consolidation of small pots, and authorisation of multi-employer schemes.
What it changes: The act establishes new obligations for employers and payroll/EOR providers to operationalize mandatory benefits and governance related to pension schemes.
Who is affected:
- Employers
- Payroll/EOR providers
What employers should do:
- Prepare to implement governance and administration changes related to pension schemes.
- Align payroll and pension processes with the new obligations introduced by the act.
Notes: Effective month: 2026-04. Manual verification recommended.
Discover the latest employment and compliance updates in UK — helping you stay ahead in a changing regulatory landscape.