Welcome to the 2026-27 tax year! Please see below for all the key info you will need in respect of employment tax for this year.
National Minimum Wage
| Age Group | From April 26 | From April 25 | Rate rise |
|---|---|---|---|
| 21+ | £12.71 | £12.21 | 4% |
| 18-20 | £10.85 | £10.00 | 8.5% |
| 16-17 | £8.00 | £7.55 | 6% |
| Apprentices under 19 | £8.00 | £7.55 | 6% |
| Apprentices 19 and over year 1 of apprenticeship | £8.00 | £7.55 | 6% |
Student loans
| Loan type | 2026/27 earnings trigger | 2025/26 earnings trigger | Collection rate (unchanged) |
|---|---|---|---|
| Plan 1 (pre 2012) | £26,900 | £26,065 | 9% |
| Plan 2 (2012 to 2023) | £29,385 | £28,470 | 9% |
| Plan 4 (Scotland) | £33,795 | £32,745 | 9% |
| Plan 5 (post Aug 2023) | £25,000 | N/A | N/A |
| Post graduate | £21,000 | £21,000 | 6% |
Statutory payments
| Description | From April 26 | From April 25 | Rate rise |
|---|---|---|---|
| Weekly SMP/SPP/SHPP/SAP (lower rate) | £194.32 | £187.18 | 3.8% |
| Weekly Bereavement Pay | £194.32 | £187.18 | 3.8% |
| *Weekly SSP | £123.25 | £118.75 | 3.8% |
*SSP now payable from day 1 of sickness (period of incapacity for work no longer applicable). SSP to be paid out in all cases at the LOWER of the above rate and 80% of the average weekly earnings in the 8 weeks immediately preceding the period of sickness.
England, Northern Ireland and Wales
| PAYE tax rates and thresholds per annum | From April 2026 |
|---|---|
| Personal Allowance (PA) | Up to £12,570 |
| Basic rate tax 20% | £12,571 to £50,270 |
| Higher tax rate 40% | £50,271 to £126,140 |
| Additional tax rate | 45% on earnings above £126,140 |
Personal allowance is tapered between down to zero from £100,000 and £125,140 of income.
Scotland
| PAYE tax rates and thresholds per annum | From April 2026 |
|---|---|
| Personal Allowance (PA) | Up to £12,570 |
| Starter tax rate 19% | £12,571 to £16,537 |
| Basic rate 20% | £16,538 to £29,526 |
| Intermediate tax rate 21% | £29,527 to £43,662 |
| Higher tax rate 42% | £43,663 to £75,000 |
| Advanced rate 45% | £75,001 to £126,140 |
| Top rate 48% | £125,141 |
Personal allowance is tapered between down to zero from £100,000 and £125,140 of income.
NIC thresholds and rates (Table A)
| Thresholds | Per week 2026/27 | Per month 2026/27 | Per year 2026/27 | Rates |
|---|---|---|---|---|
| Lower earnings limit | £129 | £559 | £6,708 | 0% |
| Primary threshold (Ees) | £242 | £1,048 | £12,570 | 8% |
| Secondary threshold (Ers) | £96 | £417 | £5,000 | 15% |
| Upper earnings limit Primary (Ees) | £967 | £4,189 | £50,270 | 2% |
Director pay – key annual amounts
| Threshold | Annual pay | Qualifying year for state pension* | Employee tax or NI deductions | ER NIC due before EA* relief | Eligible for auto enrol pension |
|---|---|---|---|---|---|
| Secondary threshold | £5,000 | No | No | No | No |
| Lower earnings limit | £6,708 | Yes | No | £256 | No |
| AE pension limit | £9,999 | Yes | No | £750 | No |
| Primary threshold | £12,570 | Yes | No | £1136 | Yes |
*Employer Allowance eligibility requires at least:
- one employee (not a director) earning at least the Secondary threshold
- or one director and one employee both earning at least the Secondary threshold
- or two directors – each earning at least the Secondary threshold.
Employer Allowance relieves up to £10,500 of employer NIC liability in 2026-27.