As your trusted payroll adviser, we have prepared a summary of key changes that will affect payrolls by jurisdiction. The items noted are, in our opinion, key changes and should not be viewed as an exhaustive list.
Payroll Updates - Guernsey
The new tax year in Guernsey, commencing in Q1 2025, introduces several notable changes for employers and employees:
Secondary Pension Scheme
Employers with 6-10 staff must enrol in the Secondary Pension Scheme by 1st January 2025.
The minimum total contribution rate is 2%, based on total earnings.
Recommendation: Seek clarification from your pension provider regarding how gross pay, which previously did not attract pension contributions, will be treated. Employers already contributing above the 2% minimum may already comply.
Reclassification of Self-Employed Individuals
Individuals previously classified as self-employed are now considered "employees" and must pay Social Insurance (SI) contributions via monthly payroll.
Opt-out option: Choosing to remain self-employed locks you into this classification for five years.
Cost impact: Minimal, as employer contributions are tax-deductible, whereas self-employed contributions are not.
Social Insurance Thresholds
In 2025, employee contributions have increased to 7.4% (up from 7.2% in 2024), while employer contributions have risen to 7.00% (up from 6.90%). The lower earnings limit has increased to £797.33 per month (up from £758.33), and the upper earnings limit is now £15,717 per month (up from £14,989).
Tax Codings
The Guernsey Revenue Service has issued new tax codings. If codings are missing, a default zero-tax allowance will apply (20% deduction). Complete the online tax coding form to update details.
Payroll Updates - Jersey
The new tax year in Jersey also brings key updates:
Social Insurance Thresholds
For 2025, employee contributions remain at 6.00%, and employer contributions stay at 6.50%. However, the standard earnings limit has increased to £5,800 per month (up from £5,450 in 2024), and the upper earnings limit has risen to £26,442 per month (up from £24,850). The lower earnings limit remains unchanged at £553 per month.
Tax Allowance Percentages
The Jersey Tax Office has issued updated percentages for tax allowances.
If these are missing, a zero-tax allowance will apply (22% deduction).
Payroll Updates - United Kingdom
Following the Autumn Budget 2024, several impactful payroll changes come into effect:
National Insurance Contributions (NICs)
The secondary NIC threshold will reduce from £9,100 per year to £5,000 per year from April 2025, followed by adjustments for Consumer Price Inflation.
The employer NIC rate will increase from 13.8% to 15%, applying to Class 1A and Class 1B contributions (covering expenses and benefits).
Employment Allowance
The Employment Allowance will increase from £5,000 to £10,500.
The £100,000 earnings threshold will be removed, expanding eligibility to employers of all sizes.
Frozen Thresholds
Personal allowances remain frozen at £12,570 until 2028.
Income and NIC thresholds will also remain frozen until 2028.
Payroll Updates - Isle Of Man
Given the stable nature of IOM payroll, there have been no key changes since Q4 2025.
If you want to discuss any upcoming changes outlined above, please get in touch with us at payroll@offshoregroup.gg.
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