ARTICLE · 04 DECEMBER 2025

UK Payroll Updates For Employers

Nexdigm Private Limited

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The UK tax authority, HMRC, has released initial high-level guidance for employers on a new student loan plan, for cryptoasset service providers, and NIC related matters.

United KingdomEmployment and HR

Nexdigm Private Limited

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The UK tax authority, HMRC, has released initial high-level guidance for employers on a new student loan plan, for cryptoasset service providers, and NIC related matters. Below are the key updates for the UK employers and payroll professionals to be aware of, as they affect business operations and payroll administration in the upcoming months.

Introduction of new student loan plan type - Plan 5

New student loan plan 5 will be operated and collected in the same way as the current loan plans type 1, 2 and 4.
For PAYE (Pay As You Earn) purposes, repayments will begin on 6 April 2026, with annual threshold of £25,000. Repayments will be made at a rate of 9% of earnings above this threshold.

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