HR Payroll - United Kingdom

A ready UK salary structure on the EH payroll engine, seeded with the 2025/26 tax-year figures:

• PAYE: a tax-free personal allowance (GBP 12,570), then progressive tax bands on the taxable remainder (20% to GBP 37,700 taxable, 40% to GBP 112,570, 45% above). The income is annualised, taxed band by band, then divided back to the pay period.
• National Insurance, computed PER PERIOD and non-cumulative: the annual thresholds are scaled to the pay period (annual divided by periods per year), and the employee's NI category letter (A, B, C, H, M) selects the employee main rate, the employee rate above the upper earnings limit, and the employer rate.

The tax bands are DATA on eh.hr.uk.tax.band, the NI category letters are DATA on eh.hr.ni.category, and the annual NI thresholds and the personal allowance are company settings. The seeded values are the published 2025/26 figures; HMRC revises them each tax year, so confirm every figure against the current HMRC rates and thresholds before each new year. The METHOD here is fixed; the rate tables are yours to keep current.

Sources: GOV.UK "Income Tax rates and allowances"; GOV.UK "Rates and thresholds for employers 2025 to 2026". Effective 6 April 2025. All public.