Payroll Bulletin Q4 2025

As your trusted payroll adviser, we’ve compiled a summary of the key payroll updates across the UK and Crown Dependencies for Q4 2025 (October to December). These changes are based on current guidance and will help ensure your payroll processes remain compliant as we approach the end of the calendar year.

Please note: this is not an exhaustive list. If you would like to discuss how any of the upcoming changes may affect your business, please contact us at payroll@offshoregroup.gg.

Payroll Updates - Guernsey 🇬🇬

• From 1 October 2025, all employers in Guernsey with just one employee must have a secondary pension scheme in place. Even if the employee opts out, the employer is still required to set up a compliant scheme.

  
  

• An exception applies where the employer is also the sole owner and sole employee—in this case, a scheme is not required. However, the appropriate opt-out paperwork must still be completed to confirm exemption.

  
  

• From October 2025, Guernsey’s minimum wage will increase to £12.60 per hour for all workers aged 18 and over. Employers should review their current pay rates to ensure they meet or exceed the new legal minimum.

  
  

Payroll Updates - United Kingdom 🇬🇧

• HMRC has postponed the mandatory introduction of payrolling benefits until April 2027, offering an additional year for employers to prepare. Despite the delay, HMRC is encouraging employers to voluntarily adopt payrolling from April 2026. This approach simplifies tax reporting by allowing benefits to be processed through payroll, reducing the need for P11D submissions.

• Employers may continue to use postponement for employees expected to work for less than three months. This defers the duty to assess these staff for automatic enrolment until the end of the three-month postponement period—ideal for managing short-term or seasonal contracts.

• Further payroll-related developments are anticipated following the Autumn Budget. We will provide updated guidance once official announcements are made.

Payroll Updates - Isle of Man 🇮🇲

There have been no new payroll updates in the Isle of Man since the start of the 2025/26 tax year. The current rules and guidance remain unchanged.

Payroll Updates - Jersey 🇯🇪

Jersey’s payroll landscape also remains stable, with no new changes introduced in Q4 2025. All guidance issued at the beginning of the year is still in effect.

If you have any queries about how these updates may impact your organisation or if you require support in updating your payroll processes, we’re here to help.

📧 Contact us at: payroll@offshoregroup.gg