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Key Payroll and HR Changes from April 2026

The 2026/27 tax year brings some of the most significant changes to UK payroll and HR legislation, heavily driven by the new Employment Rights Act 2025.

Minimum Wage (Effective 1 April 2026)

From 1 April 2026, businesses must implement the annual increases to the National Minimum Wage (NMW) and National Living Wage (NLW):

Aged 21 and over (National Living Wage): Increasing from £12.21 to £12.71 (+50p / 4.1%);
Aged 18 to 20: Increasing from £10.00 to £10.85 (+85p / 8.5%);
Aged 16 to 17: Increasing from £7.55 to £8.00 (+45p / 6%);
Apprentice Rate: Increasing from £7.55 to £8.00 (+45p / 6%).

Whilst the minimum wage increases on 1 April 2026, employers have until their next pay reference period after 1 April 2026 to apply the increased rates. For example, if the payroll period runs from 16 March to 15 April, the new rates apply from 16 April.

Common NMW errors

Some of the most common mistakes that reduce pay below minimum wage are:-

Birthdays: Missed birthdays as employees turn 18 or 21 and move from one NMW rate to another;
Salary Sacrifice: A salary sacrifice (such as a Cycle to work scheme) cannot reduce an employees pay below minimum wage;
Overtime: If employees work beyond their contracted hours but are only paid for their scheduled shifts, they may not be receiving the correct minimum wage. For example, a restaurant worker who stays late to clean up after closing must be paid for that additional time;
Uniforms and Equipment: If an employer requires employees to purchase a uniform or essential work equipment, these costs should not reduce the employees pay below the minimum wage;
Training: Employees must be paid for any time spent attending mandatory training or induction sessions, even if these take place outside of normal working hours;
Self-employed: Employers incorrectly classifying their employees, and registering them as self-employed instead of employees.

Statutory Sick Pay (Effective 6 April 2026)

Major reforms to SSP also come into effect this week, expanding eligibility to more employees:

Day-One Right: The three “waiting days” have been abolished. SSP is now payable from the very first day of sickness absence;
Lower Earnings Limit Removed: The previous earnings threshold (£125/week) has been scrapped. All employees, including lower-paid and part-time staff, now qualify for SSP;
New Rate: The standard SSP rate increases from £118.75 to £123.25 per week, or 80% of the employee’s average weekly earnings – whichever is lower.

The Fair Work Agency (Launched 7 April 2026)

A new single enforcement body has been established by the government to consolidate regulatory powers and oversee employer compliance across several critical areas, including:

National Minimum Wage (NMW),
Holiday Pay calculations and entitlements (a new legal duty requires employers to retain accurate records relating to annual leave for six years);
Statutory Sick Pay (SSP).

New Service Charge Rules (Expected October 2026)

Following the Employment (Allocation of Tips) Act, which came into force in October 2024 and imposes a legal obligation on employers to distribute 100% of service charge (including tips and gratuities) to employees, the the Employment Rights Act 2025 goes a step further by mandating how policies are created:

Mandatory Consultation: Employers can no longer unilaterally write a tipping policy. Under the proposed rules, employers will legally be required to formally consult with employees (or their trade union/representatives) before publishing or changing a service charge policy;
Three-Year Review Cycle: service charge policies cannot be “set and forget”. They must be formally reviewed and re-consulted at least once every three years;
Non-Compliance Penalties: If an employer fails to consult properly, employees can take them to an Employment Tribunal, which can award compensation of up to £5,000 per affected worker.

12/04/2026

This week’s five-day TfL strike action has had a substantial and immediate negative financial impact on hospitality revenues across London.

Financial impact of TFL strikes on London’s hospitality sector

By admin3988Trending

This week’s five-day TfL strike action has had a substantial and immediate negative financial impact on hospitality revenues across London.

Our analysis, which consolidates data from over 100 operators, reveals a severe decline in sales, particularly at the beginning of the week when compared against the 52-week average:-

Monday: Revenue drop of −48.62%
Tuesday: Revenue drop of −42.20%
Wednesday: Revenue drop of −38.77%
Thursday: Revenue drop of −18.06%

Access Hospitality states bookings for restaurants and other hospitality venues in London have fallen by 67%, and trade body UK Hospitality estimates this week’s walkouts could cost the sector up to £110 million.

The data highlights that the disruption was most severe on Monday (the first day of the strike) and Tuesday, gradually easing as the week progressed.

To mitigate losses, many operators were forced to reduce hours or cancel shifts for casual and zero-hour employees, leading to a significant loss of income for many employees, in addition to loss of service charge income which is a key component of take home pay.

Whilst some restaurants in Soho, Knightsbridge, Notting Hill and those in close proximity to the Elizabeth Line (which was not affected by the strike) reported minimal impact, the data demonstrates the overall sensitivity of the restaurant sector to transport disruptions and underlines the importance of contingency planning around major events that affect customer mobility.

Although the strike action concluded on Friday morning, its impact is set to linger into the weekend. Projections based on confirmed bookings indicate that weekend sales are still tracking below average.

Our industry tracker consolidates data from over 100 hospitality operators across London and the surrounding areas, including quick service, casual dining, Michelin-starred, pubs, bars, and clubs.

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or for a quote, please complete the below form.

12/09/2025

How Bubala Scaled Confidently with Prysm Financial

By admin3988Success Stories, Trending

Bubala is a Middle Eastern restaurant that started as a popup and has now expanded into three thriving permanent sites.

Bubala, meaning darling in Yiddish, was founded by Marc Summers (formerly of Berber & Q) with a vision to bring delicious meat-free Middle Eastern food to London.

Since Marc partnered with Prysm Financial’s specialist restaurant accountants to manage all aspects of their finance function, Bubala has benefited from regular and robust reporting, with the directors being freed up to fine tune performance.

A Middle Eastern Restaurant That Happens To Be Vegetarian

Following a successful popup, the first permanent location opened in Spitalfields in 2019, followed by a second site in Soho in 2022, and a third which opened in King’s Cross in Spring 2025.

While the menu is exclusively vegetarian, the restaurant prides itself first on the quality of its Middle Eastern dishes. It has always been keen not to be pigeonholed first and foremost as a vegetarian restaurant.

Bold, complex flavours and textures feature throughout the menu, with high-quality vegetarian dishes given the spotlight they deserve.

Hummus, falafel and labneh feature prominently, but inspiration is also drawn from the founders’ Jewish heritage, with the inclusion of confit potato latkes and a pickle plate.

A SLOW AND MANUAL FINANCE FUNCTION

As the business grew, so did the complexity of managing finances.

Bubala previously relied on a small bookkeeping firm with manual, paper-based processes. Invoices and receipts were forwarded ad-hoc, financial information was delayed and historic, and valuable founder time was diverted from operations to administration.

This lack of timely financial insight made it difficult to make data-informed decisions and plan confidently for growth.

FIXING THE FINANCE FUNCTION

Prysm Financial stepped in as Bubala’s outsourced finance department, overhauling the entire finance function using leading cloud-based tools, including Apron. Tasks such as invoice management, payment runs, bookkeeping, and reconciliations were automated or centralized in a single system.

SCALING WITH CONFIDENCE

With a streamlined, insight-driven finance function and a solid operational foundation, Bubala is poised for continued growth.

The team have opened their third permanent site in King’s Cross – with Prysm Financial continuing to support their expansion.

With Prysm Financial, Bubala now benefits from:

Regular, detailed multi-site reporting delivered by an agreed date each month,
More accurate profit visibility,
KPIs and sector-specific benchmarks to guide strategic decisions,
Regular review meetings to explore opportunities and solve challenges.

Introductory Meeting

With over 30 years of combined experience, our digitally-enhanced finance function provides restaurant and hospitality entrepreneurs with financial clarity and specialist advice to navigate past obstacles, identify opportunities and grow with confidence.

To arrange an introductory meeting,
or for a quote, please complete the below form.

31/07/2025

Streamlining Payroll for an Independent Restaurant

By admin3988Success Stories, Trending

Our client operates a busy independent restaurant in London, with a team of 20 staff including kitchen, bar, and front-of-house roles.

As trade picked up post-pandemic, the owner faced increasing pressure to manage staff costs, comply with payroll legislation, and keep on top of admin — all while focusing on delivering a high-quality dining experience. With no in-house HR or finance team, payroll had become a stressful, time-consuming task that risked costly errors and staff dissatisfaction.

Prysm Financial provides specialist payroll and accountancy services for restaurants, bars and hotels in London and throughout the UK.

OVERHAULING A DISJOINTED PAYROLL PROCESS

Built for Hospitality Rotas

The restaurant relied on a weekly rota that changed frequently based on bookings, seasonality, and staff availability. We implemented a payroll system specifically designed for shift-based hospitality businesses, allowing managers to upload approved hours directly from the rota without retyping or spreadsheet guesswork.

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Real-Time Holiday Pay and Transparency

Staff worked a mix of full-time, part-time, and zero-hour contracts — making holiday pay calculations a challenge. We introduced real-time holiday accrual and automated payslip breakdowns, giving employees visibility and reducing queries to management.

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Compliance with NMW and Pension Duties

Our solution included automated checks for National Minimum Wage compliance, even when tronc or unpaid breaks were factored in. We also ensured pension auto-enrolment duties were being met — something that had previously been missed for some part-time staff.

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Simple, Timely Payroll Processing

We took full ownership of monthly payroll processing, from timesheet validation to payslip delivery and HMRC submissions. Payroll reports were sent directly to the owner each month, including total labour costs, NI contributions, and departmental breakdowns.

THE OUTCOME

With a streamlined payroll process and a compliant, cloud-based system in place, the owner now spends far less time managing admin — and more time focusing on the restaurant and its customers.

Staff have greater visibility and confidence in their pay, holiday, and hours worked, while the risk of compliance issues has been eliminated. Most importantly, payday is no longer a source of stress — for the owner or the team.

Introductory Meeting

To arrange an introductory meeting,
or for a quote, please complete the below form.

Save up to 50% on payroll costs,
Digitally enhanced payroll function,
Free up time and frustration,
Dedicated account manager,
Market leading payroll technology,
An accurate, efficient and cost-effective service,
Seamless transition.

15/07/2025

Transforming Payroll for a Multi-Site Hotel

By admin3988Success Stories, Trending

Our client runs a group of boutique hotels across four sites in London and the South East, employing over 150 staff on a mix of full-time, part-time, and zero-hour contracts.

With high staff turnover and complex rotas, payroll had become a time-intensive bottleneck for the HR Director, with manual processes dominating each monthly cycle. They approached Prysm Financial for a more reliable, compliant, and scalable payroll solution.

OVERHAULING A DISJOINTED PAYROLL PROCESS

We began with a full audit of their existing payroll setup, engaging closely with the operations director, HR manager, and general managers at each site. Our focus was on reducing admin, improving accuracy, and ensuring payroll compliance.

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Hospitality Payroll Built for Flexibility

We implemented a cloud-based payroll system designed for flexible, variable-hour workforces. The system could handle split shifts, variable pay rates, and last-minute rota changes – all without needing manual re-entry each week.

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Seamless Rota and Timesheet Integration

Previously, managers submitted spreadsheet based timesheets, often leading to errors or delays. We integrated their staff scheduling software directly with payroll, ensuring approved hours flowed automatically into each pay run. This removed double entry and significantly reduced pay disputes.

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Real-Time Holiday Accrual and Pay Transparency

Calculating holiday pay for zero-hour staff had been a major challenge, especially with changing legislation. We implemented real-time holiday tracking based on hours worked, ensuring compliance and reducing confusion for both staff and managers. Payslips were made available via a secure portal, increasing transparency and reducing queries to head office.

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Onboarding and Leaver Automation

We introduced a digital onboarding process that allowed new joiners to submit details and right-to-work documents electronically. Leavers were processed efficiently, with final pay calculations and P45s issued automatically – saving hours of admin each month.

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Consolidated Payroll Reporting

Each month, we delivered detailed payroll reports, broken down by site, role, and pay type. Wage cost percentages were benchmarked against revenue, helping the leadership team spot anomalies and optimise staffing levels across quieter periods.

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Monthly Consolidated Reporting
We built bespoke monthly management accounts, including consolidated P&L by site, food and labour cost ratios, and operational KPIs. This gave the directors a clear view of underperforming locations and helped inform pricing and staffing decisions.

THE OUTCOME

Within three months, our client transitioned from a disjointed payroll setup to a centralised, compliant system built for hospitality. Errors and late payments dropped dramatically. Staff satisfaction improved thanks to transparent pay and faster resolutions to queries.

Introductory Meeting

To arrange an introductory meeting,
or for a quote, please complete the below form.

✔ Chartered Certified Accountants
✔ Full service – bookkeeping, accounting, payroll and tax,
✔ Free up time and frustration,
✔ Dedicated finance partners,
✔ Grow with confidence,
✔ Powered by Xero.

15/07/2025

Trending

The 2026/27 tax year brings some of the most significant changes to UK payroll and HR legislation, heavily driven by the new Employment Rights Act 2025.

We are thrilled to announce that Datafox R&D is now officially part of Prysm Financial.

Introductory Meeting

This week’s five-day TfL strike action has had a substantial and immediate negative financial impact on hospitality revenues across London.

Introductory Meeting

Bubala is a Middle Eastern restaurant that started as a popup and has now expanded into three thriving permanent sites.

Bubala, meaning darling in Yiddish, was founded by Marc Summers (formerly of Berber & Q) with a vision to bring delicious meat-free Middle Eastern food to London.