February 2026 release

This release ensures you are fully prepared for the 2026/27 payroll year by updating Ciphr Payroll with all required HMRC legislative changes in one place, helping you stay compliant with no manual setup.

We’ve also delivered support for the major SSP reforms coming in April 2026, giving you clarity and confidence when managing sickness absence under the new rules.

Contents

• HMRC 2026/27 Annual legislative updates
• Major change: SSP Rule changes (effective April 2026)
• Parental pay & absence enhancements
• Enhancements and fixes

HMRC 2026/27 annual legislative updates

We’ve updated Ciphr Payroll with all standard HMRC changes required for the 2026/27 tax year, ensuring you remain fully compliant from April 2026. These updates include:

• PAYE tax bands for England, Scotland and Wales

• National Insurance thresholds and rates, including director NI

• Student loan and postgraduate loan thresholds, including support for Student Loan Plan 5

• National Living Wage and Minimum Wage rates for all age groups and apprentices

• Statutory family‑related pay rates (SMP, SPP, SAP, SHPP, SPBP, SNCP)

• Small Employer’s Relief updated to the 9% rate

Major change: SSP rule changes (effective April 2026)

The government has introduced significant reforms to Statutory Sick Pay (SSP) from 6 April 2026. Ciphr Payroll now supports the new rules, including:

• SSP paid at 80% of Average Weekly Earnings, up to the new weekly cap

• Removal of waiting days

• Updated eligibility rules following removal of the Lower Earnings Limit

• Full support for transitional absences that span the 6 April implementation date

Parental pay & absence enhancements

Improved handling when AWE is missing or below LEL. When Average Weekly Earnings are too low or not available:

• Statutory parental payments will not be incorrectly created

• Salary deductions apply as normal

• Occupational absence pay still calculates

• Payments are clearly flagged for review