Income tax (England and Northern Ireland)
The personal allowance stays at £12,570 a year (£1,048 a month, £242 a week). According to HMRC's rates and thresholds for 2026 to 2027:
| Band | Rate | Taxable earnings above the personal allowance |
|---|---|---|
| Basic | 20% | Up to £37,700 |
| Higher | 40% | £37,701 to £125,140 |
| Additional | 45% | Above £125,140 |
Scotland has its own six-band structure and Wales uses the same bands as England for 2026/27.
National Insurance
| Threshold | Weekly | Monthly | Annual |
|---|---|---|---|
| Lower Earnings Limit | £129 | £559 | £6,708 |
| Secondary threshold (employer) | £96 | £417 | £5,000 |
| Primary threshold (employee) | £242 | £1,048 | £12,570 |
| Upper Earnings Limit | £967 | £4,189 | £50,270 |
- Employer NI is 15% on earnings above the secondary threshold, with no upper limit.
- Employee NI is 8% between the primary threshold and Upper Earnings Limit, then 2% above it.
- Employer relief (0% up to £50,270) applies to under-21s, apprentices under 25 and qualifying veterans.
- Class 1A on benefits in kind is 15%.
- Employment Allowance is £10,500 for eligible employers.
National Minimum Wage from 1 April 2026
| Category | Hourly rate |
|---|---|
| National Living Wage (21 and over) | £12.71 |
| 18 to 20 | £10.85 |
| Under 18 | £8.00 |
| Apprentice | £8.00 |
| Accommodation offset (daily) | £11.10 |
Source: GOV.UK minimum wage rates. More detail in our minimum wage guide.
Statutory payments
From 6 April 2026, Statutory Sick Pay is paid from the first day of sickness at £123.25 a week or 80% of average weekly earnings, whichever is lower. Small employers can reclaim 109% of most statutory payments (not SSP), with other employers reclaiming 92%, according to the April 2026 Employer Bulletin. See our SSP changes guide.
Student loan thresholds
| Plan | Annual threshold | Rate |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate loan | £21,000 | 6% |
Auto-enrolment thresholds
Unchanged for 2026/27, according to The Pensions Regulator: earnings trigger £10,000, qualifying earnings band £6,240 to £50,270.
Coming next: from April 2027, company cars, fuel, vans and medical benefits must be payrolled. Read our benefits in kind guide.