To make sure you're ready to process in the new tax year, complete the following tasks.

1. Check your version:

1. Click Help then click About.
2. In the Program Details section, check your version number starts with v30.00.

NOTE: If you version number is below v30.00, you must update your software before processing in the 24/25 tax year. Download and install the Sage 50 Payroll year end update >

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2. Update your NI rates

The Spring Budget 2024 announcement included a reduction of the main rate of employee National Insurance for the 2024/25 tax year.

You must update your NI rates in Sage 50 Payroll v30, before you process a 2024/25 payroll. To find out how, visit our how to apply the Spring Budget 2024 NI changes guide.

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3. Update the tax codes and clear the week 1 / month 1 flags:

For the 2024/25 tax year, the personal allowance and emergency tax code remain the same at £12,570 and 1257L.

This means you won't need to update any employee tax codes unless informed by HMRC, but you do need to remove w1/m1 flags. Find out how to do this in our update your employees' tax codes guide.

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4. Apply for the employment allowance:

You need to apply to claim the employment allowance at the start of each tax year:

 TIP: Find out more in our handy guide, what is employment allowance? >

1. Click Company, then click Settings.
2. Click the Apply for EA button.
3. From the State Aid drop-down menu, select one of the following options:
   • Applicable
   • Not Applicable

   If State Aid is applicable, select the relevant State Aid Sector.

4. Click Submit then click Continue.
5. Click Submit then click Submit.

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5. Claim small employers' relief (SER):

Your company normally qualifies for SER if your liability for national insurance (NI) contributions was £45,000 or less in the last complete tax year prior to the employee’s qualifying week, or in the case of adoption, the matching week.

You can learn more about SER in our handy guide, what is Small Employers' Relief (SER)?

1. Click Company then click Settings.
2. Select the Eligible for Small Employers' Relief check box.
3. Click OK.

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