Employment
Taxes

Official PAYE income tax bands: GOV.UK Rates & thresholds for employers 2025 to 2026

Managing Pay As You Earn (PAYE) tax and National Insurance Contributions (NICs) becomes more demanding and complex as your workforce grows.

Other factors, like working patterns, part time workers or zero-hours contracts can complicate this further. Gravitate can handle your registration, ongoing compliance and reporting to keep you fully aligned with HMRC’s strict rules.

There are several benefits that you can provide to employees, like company cars or private medical insurance. But lots of these must be reported via P11D forms, because they are taxable on the employee and chargeable to National Insurance for the employer.

We help you identify all reportable benefits, prepare accurate P11D submissions, calculate Class 1A NICs, and ensure your reporting is timely and complete.

From April 2027, mandatory payrolling of Benefits of Kind will take effect, which we can also help you with. Employment benefits will no longer be a once-a-year discussion; they will become part of the monthly/weekly payroll cycle.

We encourage early adoption to minimise the transition, and we can guide you through the process to maximise on the many benefits available.

Employers pay Class 1 National Insurance at 15% on employee earnings above £5,000 per year (2025/26).

National Insurance costs are a significant part of your company’s employment expenses. At Gravitate, we will review your employment structure to uncover opportunities to reduce Employer NICs, ensure correct categorisation of employees, and help you maximise the Employment Allowance.

Shares, bonuses and other incentives are a great way to reward and motivate team members and retain key talent. While rewarding, they must be structured carefully to ensure they are tax efficient.

Gravitate can advise on the most suitable share schemes (such as EMI, CSOP, SIP or SAYE) and alternative incentive arrangements too. We’ll also take care of valuations, filings, and HMRC compliance.

Salary sacrifice arrangements can deliver big tax savings for both employers and employees. Salary sacrifice can cover things like pension contributions, company cars or childcare.

Our team will work with you to design, set up and document an effective salary sacrifice scheme. We understand the importance of salary sacrifice, because we do it ourselves!

Company cars are a great incentive for staff, but they have complex Benefit in Kind rules and potential tax pitfalls to be aware of. Gravitate can you set up or review your company car policy, let you know the most tax-efficient options both now and over the period of your lease, and manage ongoing compliance.