The Autumn Budget 2025 introduced several important reforms that will directly affect your clients with UK employees, internationally mobile talent, or high-growth operations. From pension contributions and international tax reliefs to employee share schemes, these changes will influence how businesses structure rewards, manage compliance, and plan for future growth.
Salary Sacrifice and Pension Contributions
From April 2029, pension contributions made under salary sacrifice will become subject to both employer and employee National Insurance Contributions (NICs) on amounts exceeding £2,000 per year.
Other employer pension contributions remain NIC-free, but this shift means your clients may need to:
- Reassess their reward and benefits strategy
- Review salary sacrifice arrangements
- Update employee communications and cost projections
For a detailed technical breakdown tailored for advisors, read our detailed insight here.
Enterprise Management Incentives (EMI): Expanded Eligibility and Longer Lifespans
One of the most notable employment-related reforms relates to Enterprise Management Incentive (EMI) options.
From April 2026, larger and scaling companies will gain increased access to EMI schemes, as key thresholds rise.
These changes will allow more companies to participate in EMI and give existing participants greater flexibility, particularly those operating exit-based share option structures.
For a full overview of the updates and what they mean for employers, access our insight here.
Overseas Workday Relief (OWR): New Caps and PAYE Alignment
The Budget also introduced reforms to Overseas Workday Relief, a long-standing provision supporting internationally mobile employees who are newly resident in the UK.
From April 2026, OWR will be capped at the lower of:
- £300,000, or
- 30% of total employment income for the tax year
In addition, PAYE processes must now be aligned with these limits, meaning employers will need to ensure any S690 applications and payroll adjustments reflect the statutory cap.
For a clear and practical explanation of how these changes apply to your clients, and to understand transitional rules, read our guidance here.
These reforms will shape how your clients manage remuneration, mobility and compliance in the years ahead. Many businesses will now need to review their existing policies, modelling, share plans and payroll processes.
If you would like expert support applying these updates to your clients incentive structures, our integrated tax, legal and HR specialists are here to help.
