Update

2025-26 tax year changes and what they mean

A practical overview of the current PayPath UK ruleset and the parts most likely to affect take-home pay planning.

Ruleset update2 min readRuleset 2025-26Last reviewed 13 March 2026Author PayPath UKReviewed by PayPath UK editorial reviewMethodology

What changed

This ruleset refresh keeps the current tax-year assumptions visible in one place so users can check what the calculators are based on before making comparisons.

Why this page exists

The calculators are only useful if users can see which ruleset they are based on. This page is the current-year reference point for the assumptions behind PayPath UK.

What the current ruleset covers

The current model supports the rest of the UK and Scotland, employee National Insurance, supported student loan plans, bonus modelling, salary sacrifice planning, take-home estimates, and compensation comparisons.

What this means in practice

For most users, the biggest planning differences come from marginal tax bands, student loan deductions, and whether a pension contribution is modelled through salary sacrifice. That is why the take-home pay calculator, salary sacrifice calculator, and pay rise calculator all surface ruleset assumptions more clearly now.

What this page does not try to do

This is not a complete tax manual. It is a practical overview of the ruleset that supports the calculators. Real payroll, tax codes, benefits in kind, and employer-specific arrangements can still produce different payslip outcomes.

Best next step

If your decision depends on a specific salary, bonus, or sacrifice amount, run the matching calculator and then compare the scenario in the workspace instead of relying on a general guide alone.

How to use PayPath here

Run the relevant calculator for your live numbers, review the methodology if the assumptions matter to your decision, and save the strongest scenarios in the workspace if you are comparing more than one option.