Tax and deductions from pay

New and updated

• Type:

  Employment law guide

  Company car schemes and travel allowances

  Updated with the advisory electricity rates for fully electric cars, effective from 1 December 2025 and with details from the Budget 2025, which introduced a new electric vehicle excise duty for electric and plug-in hybrids and announced a delay to new ECOS tax rules.

• Type:

  Employment law guide

  Expenses

  Updated with reference to Budget 2025, which announced the removal of tax relief on non-reimbursed homeworking expenses from 6 April 2026.

• Type:

  Employment law guide

  Share schemes and share ownership plans

  Updated with information from Budget 2025, including increased limits to the enterprise management incentive scheme and the introduction of PISCES trading events as exercisable events.

• Type:

  Employment law guide

  Pay As You Earn

  Updated with information on Budget 2025 regarding the freeze on certain income tax and NIC thresholds and the CPI rate of inflation.

• Type:

  Legal timetable

  Limit to NIC relief on salary-sacrificed pension contributions

  Employer and employee NICs will apply to pension contributions above £2,000 per year, made through salary sacrifice.

• Date:

  26 November 2025

  Type:

  News

  Autumn Budget 2025: Salary sacrifice hit and tax thresholds frozen

  Tax thresholds will remain frozen and pension salary sacrifice will no longer be exempt from National Insurance, the Chancellor has confirmed in today's Budget.

• Type:

  Employment law guide

  Childcare benefits

  Updated with information on HMRC’s new digital service for paying the high income child benefit charge.

• Type:

  Employment law guide

  Deductions from wages and attachment of earnings

  Updated to reference the Government’s recent update to its policy paper on eligibility for Lifelong Loan Entitlement.

• Type:

  Employment law guide

  IR35

  Updated to reflect that changes to how small businesses are defined, from 6 April 2025, mean that some organisations will no longer be responsible for applying the IR35 rules.

• Type:

  FAQs

  Are long service awards subject to tax and national insurance?

  Long-service gifts consisting of tangible items or shares in the employing company are free of tax and national insurance only if...