Income Tax — Personal Allowance

Allowance Weekly Monthly Annual
Standard Personal Allowance £242 £1,048 £12,570

The Personal Allowance reduces by £1 for every £2 of adjusted net income above £100,000. It is zero at £125,140 and above.

Income Tax Rates & Bands — England & Northern Ireland

Band Annual Taxable Income Rate
Personal Allowance Up to £12,570 0%
Basic rate £12,571 to £50,270 20%
Higher rate £50,271 to £125,140 40%
Additional rate Above £125,140 45%

Basic rate band: up to £37,700 above the Personal Allowance (i.e. £12,571–£50,270).

Income Tax Rates & Bands — Wales

Band Annual Taxable Income Rate
Personal Allowance Up to £12,570 0%
Basic rate £12,571 to £50,270 20%
Higher rate £50,271 to £125,140 40%
Additional rate Above £125,140 45%

Income Tax Rates & Bands — Scotland

Band Annual Taxable Income (above Personal Allowance) Rate
Personal Allowance Up to £12,570 0%
Starter rate £12,571 to £16,537 (up to £3,967 above PA) 19%
Basic rate £16,538 to £29,526 (up to £16,956 above PA) 20%
Intermediate rate £29,527 to £43,662 (up to £31,092 above PA) 21%
Higher rate £43,663 to £75,000 (up to £62,430 above PA) 42%
Advanced rate £75,001 to £125,140 (up to £112,570 above PA) 45%
Top rate Above £125,140 48%

Emergency Tax Codes (from 6 April 2026)

Code
1257L W1
1257L M1
1257L X

Class 1 National Insurance Thresholds

Threshold Weekly Monthly Annual
Lower Earnings Limit (LEL) £129 £559 £6,708
Primary Threshold (PT) — employee NI starts £242 £1,048 £12,570
Secondary Threshold (ST) — employer NI starts £96 £417 £5,000
Upper Earnings Limit (UEL) £967 £4,189 £50,270
Upper Secondary Threshold — under 21s £967 £4,189 £50,270
Apprentice Upper Secondary Threshold — apprentice under 25 £967 £4,189 £50,270
Veterans Upper Secondary Threshold £967 £4,189 £50,270
Freeport Upper Secondary Threshold £481 £2,083 £25,000
Investment Zone Upper Secondary Threshold £481 £2,083 £25,000

Class 1 NI Rates — Employee (Primary) Contributions

Category Letter Description Up to PT PT to UEL Above UEL
A Standard 0% 8% 2%
B Married women / widows reduced rate 0% 1.85% 2%
C State Pension age or above Nil Nil Nil
D Investment Zone — deferment 0% 2% 2%
E Investment Zone — married women / widows reduced rate 0% 1.85% 2%
F Freeport 0% 8% 2%
H Apprentice under 25 0% 8% 2%
I Freeport — married women / widows reduced rate 0% 1.85% 2%
J Deferment (standard) 0% 2% 2%
K Investment Zone — state pensioner Nil Nil Nil
L Freeport — deferment 0% 2% 2%
M Under 21 0% 8% 2%
N Investment Zone 0% 8% 2%
S Freeport — state pensioner Nil Nil Nil
V Veteran 0% 8% 2%
Z Under 21 — deferment 0% 2% 2%

Class 1 NI Rates — Employer (Secondary) Contributions

Category Letter Description Up to ST ST to Freeport/IZ UST Above Freeport/IZ UST to UST Above UST
A Standard 15% 15% 15% 15%
B Married women / widows reduced rate 15% 15% 15% 15%
C State Pension age or above 15% 15% 15% 15%
D Investment Zone — deferment 0% 0% 15% 15%
E Investment Zone — married women / widows reduced rate 0% 0% 15% 15%
F Freeport 0% 0% 15% 15%
H Apprentice under 25 0% 0% 0% 15%
I Freeport — married women / widows reduced rate 0% 0% 15% 15%
J Deferment (standard) 15% 15% 15% 15%
K Investment Zone — state pensioner 0% 0% 15% 15%
L Freeport — deferment 0% 0% 15% 15%
M Under 21 0% 0% 0% 15%
N Investment Zone 0% 0% 15% 15%
S Freeport — state pensioner 0% 0% 15% 15%
V Veteran 0% 0% 0% 15%
Z Under 21 — deferment 0% 0% 0% 15%

Class 1A / 1B NI Rates

Type Rate
Class 1A — expenses & benefits 15%
Class 1A — termination awards (above £30,000) 15%
Class 1A — sporting testimonials (above £100,000) 15%
Class 1B — PAYE Settlement Agreements 15%

Student & Postgraduate Loan Repayment Thresholds

Loan Plan Annual Threshold Monthly Threshold Weekly Threshold Rate
Plan 1 £26,900 £2,241.66 £517.30 9%
Plan 2 £29,385 £2,448.75 £565.09 9%
Plan 4 £33,795 £2,816.25 £649.90 9%
Plan 5 £25,000 £2,083.33 £480.76 9%
Postgraduate Loan £21,000 £1,750.00 £403.84 6%

Statutory Payments (from 6 April 2026)

Payment Weekly Rate
Statutory Sick Pay (SSP) £123.25 (or 80% AWE if lower)
Statutory Maternity Pay — first 6 weeks (SMP) 90% of AWE
Statutory Maternity Pay — remaining weeks (SMP) £194.32 (or 90% AWE if lower)
Statutory Paternity Pay (SPP) £194.32 (or 90% AWE if lower)
Statutory Adoption Pay — first 6 weeks (SAP) 90% of AWE
Statutory Adoption Pay — remaining weeks (SAP) £194.32 (or 90% AWE if lower)
Statutory Shared Parental Pay (ShPP) £194.32 (or 90% AWE if lower)
Statutory Parental Bereavement Pay (SPBP) £194.32 (or 90% AWE if lower)
Statutory Neonatal Care Pay (SNCP) £194.32 (or 90% AWE if lower)

SMP rates apply from 5 April 2026. All others from 6 April 2026. AWE = Average Weekly Earnings.

Statutory Payments Recovery

Employer Class 1 NI (previous tax year) Recoverable %
Above £45,000 92%
£45,000 or below 109%

National Minimum Wage (from 1 April 2026)

Worker Category Hourly Rate
Aged 21 and above (National Living Wage) £12.71
Aged 18 to 20 £10.85
Aged under 18 (above compulsory school leaving age) £8.00
Apprentice aged under 19 £8.00
Apprentice aged 19+, in first year of apprenticeship £8.00

Employment Allowance

Allowance Amount
Employment Allowance (reduction in employer NI liability) £10,500

Apprenticeship Levy

Item Rate / Amount
Levy charge (on pay bill above £3 million) 0.5%
Annual allowance (reduces levy payable) £15,000

Company Car Advisory Fuel Rates (from 1 March 2026)

Petrol

Engine Size Rate per mile
Up to 1400cc 12p
1401cc to 2000cc 14p
Over 2000cc 22p

Diesel

Engine Size Rate per mile
Up to 1600cc 12p
1601cc to 2000cc 13p
Over 2000cc 18p

LPG

Engine Size Rate per mile
Up to 1400cc 10p
1401cc to 2000cc 12p
Over 2000cc 19p

Electric

Charging type Rate per mile
Home charger 7p
Public charger 15p

Hybrid cars are treated as petrol or diesel. Electricity is not a fuel for car fuel benefit purposes.

Employee Mileage Allowance Payments (MAPs)

Vehicle Rate
Car / van — first 10,000 business miles 45p per mile
Car / van — above 10,000 business miles 25p per mile
Car / van — NI purposes (all miles) 45p per mile
Motorcycle 24p per mile
Cycle 20p per mile

Source: GOV.UK — Rates and thresholds for employers 2026 to 2027 (last updated 7 April 2026) and GOV.UK — Income Tax rates and Personal Allowances.

Personal Tax