Payroll in the Firing Line: Budget 2025's Perfect Storm

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Payroll is facing one of its biggest turning points. Complexity is rising, risks are increasing, and the latest UK Budget is reshaping how every employer must run payroll.

In this episode of the Payroll Podcast, Nick Day breaks down the new government announcements, including mandatory payrolling of benefits, the incoming salary sacrifice NI cap, the frozen tax thresholds, and the national minimum wage increases that will place new pressure on both employers and payroll teams.

Nick explains how these changes will affect costs, compliance, employee communication, and the systems and data that payroll relies on. You will hear why real time reporting may soon become more demanding, how HMRC specifications could impact software providers, and why these policies will challenge small businesses, bureaus, and in house teams in ways many are not expecting.

This episode also uncovers the wider economic picture behind the Budget, from the national insurance landscape to workforce trends and the shrinking labour pool. Nick shares practical steps payroll leaders can take today, including how to audit salary sacrifice populations, prepare for payrolling of benefits, collaborate with HR and finance, and communicate with clarity during a period of rapid policy change.

If you want to stay ahead of upcoming legislation, protect employee trust, and position payroll as a strategic partner during the most significant policy shift in years, this episode is for you.

Nick Day’s LinkedIn: https://www.linkedin.com/in/nickday/

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Stay tuned for the next episode of The Payroll Podcast, brought to you by Nick Day, CEO at JGA Recruitment, landing soon!