UK payroll & tax rates and thresholds 2026/27
A clear, scannable reference for the figures that drive UK payroll in the 2026/27 tax year — income tax, National Insurance, statutory payments, the minimum wage, student loans, auto-enrolment pensions and the key filing dates. Unless stated otherwise, these are the rates for England, Wales and Northern Ireland. Scotland sets its own income tax bands, so Scottish taxpayers differ on the income-tax section below.
The tax year runs from 6 April 2026 to 5 April 2027. Rates and thresholds below apply across that period unless a specific start date is noted.
Income tax
The standard Personal Allowance is £12,570. It tapers away by £1 for every £2 of income above £100,000, so it is fully gone once income reaches £125,140. The bands below apply to taxable income after the Personal Allowance.
| Band | Taxable income (above PA) | Total income | Rate |
|---|---|---|---|
| Personal Allowance | — | Up to £12,570 | 0% |
| Basic rate | £0 – £37,700 | £12,571 – £50,270 | 20% |
| Higher rate | £37,701 – £112,570 | £50,271 – £125,140 | 40% |
| Additional rate | Above £112,570 | Above £125,140 | 45% |
Dividends
The dividend allowance is £500. From 6 April 2026 dividends above the allowance are taxed at the rates below, depending on which income-tax band they fall into.
| Dividend band | Rate from 6 Apr 2026 |
|---|---|
| Dividend allowance | 0% (first £500) |
| Basic rate | 10.75% |
| Higher rate | 35.75% |
| Additional rate | 39.35% |
Personal Savings Allowance
| Taxpayer | Tax-free savings interest |
|---|---|
| Basic-rate taxpayer | £1,000 |
| Higher-rate taxpayer | £500 |
| Additional-rate taxpayer | £0 |
National Insurance
For employees (Class 1), contributions are based on earnings above the relevant threshold. Employers pay secondary Class 1 contributions on earnings above the Secondary Threshold.
| Contribution | Threshold / band | Rate |
|---|---|---|
| Employee — main rate | £12,570 – £50,270 per year | 8% |
| Employee — above upper limit | Above £50,270 per year | 2% |
| Employer (secondary) | Above £5,000 (Secondary Threshold) | 15% |
| Lower Earnings Limit (LEL) | £129/week (£6,708/year) | Benefit entitlement only |
Employment Allowance: eligible employers can reduce their employer (secondary) NI bill by up to £10,500 per tax year.
National Living & Minimum Wage (from April 2026)
The minimum hourly rates that apply from 1 April 2026. The National Living Wage applies to workers aged 21 and over.
| Category | Rate per hour |
|---|---|
| National Living Wage (21 and over) | £12.71 |
| 18 to 20 | £10.85 |
| 16 to 17 | £8.00 |
| Apprentice | £8.00 |
Statutory pay (2026/27)
Statutory Sick Pay (SSP)
From 6 April 2026 SSP is the lower of £123.25 per week or 80% of normal weekly earnings, and is paid from the first day of sickness — the three "waiting days" and the Lower Earnings Limit qualifying test are removed.
| Item | 2026/27 |
|---|---|
| SSP weekly rate | Lower of £123.25 or 80% of normal weekly earnings |
| Paid from | Day one (no waiting days) |
| Lower earnings test | Removed from 6 Apr 2026 |
Family-related statutory pay
Covers Statutory Maternity Pay (SMP), Paternity Pay (SPP), Shared Parental Pay (ShPP), Adoption Pay (SAP) and Parental Bereavement Pay (SPBP).
| Payment | 2026/27 rate |
|---|---|
| SMP — first 6 weeks | 90% of average weekly earnings (AWE) |
| SMP — remaining weeks | Lower of £194.32 or 90% of AWE |
| SPP / ShPP / SAP / SPBP / SNCP | Lower of £194.32 or 90% of AWE |
Recovering statutory payments
| Employer | Recovery rate |
|---|---|
| Small Employers' Relief (Class 1 NICs ≤ £45,000 in prior year) | 109% |
| All other employers | 92% |
Note that Small Employers' Relief and the day-one SSP rules do not apply in the same way to SSP recovery; the percentages above relate to family-related statutory payments.
Workplace pensions (auto-enrolment)
Employers must automatically enrol eligible workers — those aged 22 up to State Pension age earning above the trigger — into a qualifying pension scheme.
| Item | 2026/27 |
|---|---|
| Earnings trigger for auto-enrolment | £10,000 per year |
| Qualifying earnings band | £6,240 – £50,270 per year |
| Minimum total contribution | 8% of qualifying earnings |
| Minimum employer contribution | 3% of qualifying earnings |
| Age range for eligible jobholders | 22 to State Pension age |
Student & postgraduate loans (2026/27)
Repayments are deducted through payroll once earnings exceed the relevant annual threshold.
| Plan | Annual threshold | Deduction rate |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Key payroll & tax dates
| Deadline | What's due |
|---|---|
| 22nd of each month | PAYE/NIC paid to HMRC (electronic payment; 19th if paying by post) |
| 31 May 2027 | P60 given to employees for 2026/27 |
| 6 July 2027 | P11D and P11D(b) for expenses and benefits filed |
| 5 October 2027 | Register for Self Assessment (newly self-employed for 2026/27) |
| 31 January 2028 | Online Self Assessment return filed and tax paid; first payment on account due |
| 31 July 2028 | Second payment on account due |
A note on Scotland: Scotland sets its own income tax rates and bands for non-savings, non-dividend income. National Insurance, statutory pay, the minimum wage, student loans, pensions and the filing dates above apply UK-wide.
Let us keep you on the right figures
These thresholds change every year and mid-year tweaks happen. We run UK payroll for overseas employers and growing UK businesses, applying the correct rates each period so you don't have to track them.
Get startedThis page is general information, not tax or legal advice, and reflects our understanding of the published rates for the 2026/27 tax year as at June 2026. Figures can be revised — please check your specific position or get advice before acting.