What's new in Sage 50 Payroll v31

Summary

Find out about what's new in Sage 50 Payroll v31.

Description

The year end software update, Sage 50 Payroll v31, is available now.

If you haven't updated your software yet, access the update on our download and install the Sage 50 Payroll year end update article.

Once you install the update, your software is up to date with the new legislation and features listed below.

New legislation for 2025/2026

Your software update includes the payroll legislation changes that take effect from 6 April 2025. ▼ Click here to find out about some of the key changes.

Statutory Neonatal Care Pay (SNCP)

SNCP is a new statutory parental payment that provides eligible employees with support at a difficult time.

If you'd like to find out more, visit our SNCP entitlement and eligibility article.

NOTE: We've updated the reports in your software to include SNCP. Some reports look different as a result.

Employer's National Insurance (NI) increase

Contribution rates for employer's NI increase from the new tax year, and the threshold it's due from decreases.

Your software update includes all these changes, and is ready to keep your NI calculations compliant in the new tax year.

Learn more in our rate and threshold changes to National Insurance (NI) in the 2025/2026 tax year article.

Employment allowance

The employment allowance increases from £5,000 to £10,500 in the new tax year.

This allowance reduces the employer's NI liability for eligible businesses by an annual amount of £10,500.

Visit our employment allowance article if you'd like to learn more.

Small employers' relief (SER)

The compensation rate for SER increased to 108.5% in the new tax year. This increases from 103% last tax year.

This means eligible employers can claim more back from HMRC after paying employees statutory parental payments.

Check if your business is eligible and find out more in our what is SER article.

Payroll Assistant

Previously only available with a Professional subscription, Payroll Assistant is available to everyone from v31.

This feature helps you process your employees' pay correctly by flagging changes in their circumstances.

Visit our check your employees using Payroll Assistant article to learn how this option helps you process each pay run.

Salary sacrifice pension NI reinvestment

If you process a salary sacrifice pension scheme, employees' pay that's subject to NI reduces by the amount of their pension contributions.

This reduction means that the employee and employer often pay less NI with this type of pension scheme.

Your new software update introduces an option that makes it easy to re-invest employer NI savings to the employee's pension scheme.

Check your employees for 2025/2026 changes

There are two changes that we recommend you check before you process the first pay run of the new tax year.

Workplace post code for Freeport and Investment Zone employees

If you have any employees on a Freeport or Investment Zone National Insurance (NI) category, you need to check their workplace postcode.

HMRC now require you to submit the workplace postcode for these employees.

Enter this in the employee record for affected employees, and v31 includes it in the Full Payment Submission (FPS) automatically.

Find out more in our check and enter workplace postcodes for Freeport or Investment Zone employees article.

Reduced rate NI category date of birth check

From the new tax year, HMRC validate employees' eligibility for NI category B, E or I, based on their date of birth.

To learn more about this change, visit our check employee's date of birth for National Insurance (NI) relief categories article.