Changes to payrolling processes in 2025 and 2026

[ladymuck]

Just spotted this. Whilst the article is written from the perspective of an accountancy firm running the payroll for their clients, it's still good to be aware of the upcoming changes and what that might mean for us who run our own payroll.

https://www.accountingweb.co.uk/tax/...roll-processes

I also wonder if umbrellas will change their processes / up their fees to capture actual hours worked, or whether they'll just blanket report a 40 hour working week.

[hobnob]

I'm inside at the moment. The umbrella company (DASA) have never asked about my hours, but the agency (Hays) have an extra row for that in the timesheet. I think that's mainly been to cover them under the working time regulations (i.e. making sure that I don't exceed 48 hours/week unless I've opted out), and I know that the client doesn't see those numbers, but presumably they could be passed to the umbrella.

From the umbrella point of view, they give me a basic rate (based on minimum wage at 7.5 hours/day) then stick everything else in as a "bonus". So, it shouldn't be too hard for them to adjust the basic pay based on the actual number of hours, i.e. they wouldn't be out of pocket.

In practical terms, I think most people will just stick in 7.5 (or 8) hours per day on the timesheet rather than faffing around.