Welcome to the 2025-26 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 25 | From April 24 | Rate rise |
|---|---|---|---|
| 21+ | £12.21 | £11.44 | 7% |
| 18-20 | £10.00 | £8.61 | 16% |
| 16-17 | £7.55 | £6.40 | 18% |
| Apprentices under 19 | £7.55 | £6.40 | 18% |
| Apprentices 19 and over year 1 of apprenticeship | £7.55 | £6.40 | 18% |
Student loans
| Loan type | 2025/26 earnings trigger | 2024-25 earnings trigger | Collection rate (unchanged) |
|---|---|---|---|
| Plan 1 (pre 2012) | £26,065 | £24,990 | 9% |
| Plan 2 (post 2012) | £28,470 | £27,295 | 9% |
| Plan 4 | £32,745 | £31,395 | 9% |
| Post graduate | £21,000 | £21,000 | 6% |
Statutory payments
| Description | From April 25 | From April 24 | Rate Rise |
|---|---|---|---|
| Weekly SMP/SPP/SHPP/SAP (lower rate) | £187.18 | £184.03 | 2% |
| Weekly Bereavement Pay | £187.18 | £184.03 | 2% |
| Weekly SSP | £118.75 | £116.75 | 2% |
England, Northern Ireland and Wales
| PAYE tax rates and thresholds per annum | From April 2025 |
|---|---|
| Personal Allowance (PA) | Up to £12,570 |
| Basic rate tax 20% | £12,571 to £50,270 |
| Higher tax rate 40% | £50,271 to £125,140 |
| Additional tax rate | 45% on earnings above £125,140 |
Personal allowance is removed for income over £125,140
Scotland
| PAYE tax rates and thresholds per annum | From April 2025 |
|---|---|
| Personal Allowance (PA) | Up to £12,570 |
| Starter tax rate 19% | £12,571 to £15,397 |
| Basic rate 20% | £15,398 to £27,491 |
| Intermediate tax rate 21% | £27,492 to £43,662 |
| Higher tax rate 42% | £43,663 to £75,000 |
| Advanced rate 45% | £75,001 to £125,140 |
| Top rate 48% | £124,141 |
Personal allowance is removed for income over £125,140
NIC thresholds and rates (Table A)
| Thresholds | Per week 2025/26 | Per month 2025/26 | Per year 2025/26 | Rates |
|---|---|---|---|---|
| Lower earnings limit | £125 | £542 | £6,500 | 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 | £6,500 | Yes | No | £225 | No |
| AE pension limit | £9,999 | Yes | No | £750 | No |
| Primary threshold | £12,570 | Yes | No | £1136 | Yes |
*EA 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.
EA will relieve up to £10,500 of employer NIC liability in 2025-26.
Click the PDF button for a download of a printable version of Tax & Facts: All you need to know for 2025-2026
