Statutory changes for tax year 2026/2027

All relevant statutory changes have been applied to Cintra iQ to coincide with the new tax year on 6th April 2026. 

TABLE OF CONTENTS

• Rates and thresholds for employers 2026 to 2027
• Changes to statutory sick pay (SSP)
• Changes to Northern Ireland bereavement leave
• New student loan type: Plan 5

Rates and thresholds for employers 2026 to 2027

There have been various changes to tax and national insurance rates and thresholds, as well as increases to the national minimum wage and national living wage.

Once the HMRC has published a full list of these changes, they will be added here.

Changes to statutory sick pay (SSP) and the transition period between tax years

From April 6th 2026, the Employment Rights Act 2025 will:

• Abolish waiting days: employees will be entitled to SSP from day one of their sickness.
• Remove the lower earnings limit: all employees will be entitled to SSP, regardless of how much they earn.
• Change the SSP rate: to the standard weekly SSP rate OR 80% of average weekly earnings (whichever is lower). 
  • The standard SSP rate will increase to £123.25 per week.
  • The calculations used to establish average weekly earnings remain the same.

Any periods of sickness that end before 6th April 2026 will be subject to the previous rules, and any periods of sickness starting on or after April 6th 2026 would be subject to the new rules.

As a result of these changes, if an employee is sick during the transition period (which straddles the 2025/6 and 2026/7 tax years): 

1. The employee could become eligible for SSP for the latter part of their absence.
2. If the change in rules reduces an employee's SSP, it will "lock" the SSP rate to £123.25.

Within Cintra iQ, if an employee's sickness period straddles the two tax years (05-06 April 2026), when you calculate the employee's pay (either from Payroll Calculation screen or from the Payslip Summary screen), an exception may appear if you are required split the sickness period into two to calculate SSP correctly.  If no such exception appears, you should NOT split the sickness period. 

• If the employee has been receiving SSP up to 5th April 2026 and their SSP rate should be locked to £123.25, then you should NOT split the sickness period and the employee will continue to be paid SSP correctly. 

To split the sickness period:

1. Locate the original sickness event in the calendar. 
2. Delete or edit the original event to end on 5th April 2026.
3. Create a second sickness events that begins on 6th April 2026. 

For more information, see How do I create and amend calendar events?

Changes to Northern Ireland bereavement leave

The following changes will apply from 6th April 2026:

• Parental bereavement pay now applies to miscarriages at any stage of pregnancy.
• There is no 26 week service requirement to receive these benefits. The employee can receive them from their first day of employment.
• If you are are a Northern Ireland employer, you must report parental bereavement as a different attendance category. For more information, see How do I create a bereavement claim/leave calendar event?

New student loan type: Plan 5

Before April 6th 2026, repayment of UK government student loans were handled under Plan 1, Plan 2, Plan 4, or a Postgraduate Loan. In the 2026/7 tax year, a new plan will be introduced: Plan 5. 

• It will be collected in the same way as Plans 1,2 and 4. 
• The earliest repayments through PAYE can start is 6th April 2026.
• Repayments will be set at 9% on earnings over £25,000 p.a. (before any Class 1 NI contributions). 
• From 2026/27, Plan 5 will be the new default plan type to use.

For more information on student loan types, see Student loan and postgraduate loan repayment guidance for employers - GOV.UK.