Figures are for England, Wales and Northern Ireland unless we say otherwise.
These figures are a summary. Your own position depends on your income and circumstances. If you are not sure, book a call and we will work it out with you.

Income Tax

The Personal Allowance and the Income Tax bands are the same in both years.

Band	Taxable income	2025/26	2026/27
Personal Allowance	Up to £12,570	0%	0%
Basic rate	£12,571 to £50,270	20%	20%
Higher rate	£50,271 to £125,140	40%	40%
Additional rate	Over £125,140	45%	45%

Your Personal Allowance falls by £1 for every £2 of adjusted net income over £100,000. It is nil at £125,140.
If you live in Scotland, different bands and rates apply. See Scottish Income Tax.

National Insurance

Employees and employers (Class 1)

Item	2025/26	2026/27
Lower Earnings Limit	£125 a week (£6,500 a year)	£129 a week (£6,708 a year)
Primary Threshold (employee starts paying)	£242 a week (£12,570 a year)	£242 a week (£12,570 a year)
Secondary Threshold (employer starts paying)	£96 a week (£5,000 a year)	£96 a week (£5,000 a year)
Upper Earnings Limit	£967 a week (£50,270 a year)	£967 a week (£50,270 a year)
Employee rate, Primary Threshold to Upper Earnings Limit	8%	8%
Employee rate, above Upper Earnings Limit	2%	2%
Employer rate, above Secondary Threshold	15%	15%
Employment Allowance	£10,500 a year	£10,500 a year

Self-employed (Class 2 and Class 4)

Item	2025/26	2026/27
Class 4 on profits £12,570 to £50,270	6%	6%
Class 4 on profits above £50,270	2%	2%
Class 2 Small Profits Threshold	£6,845	£7,105
Class 2 voluntary rate	£3.50 a week	£3.65 a week

If your profits are below the Small Profits Threshold, you may pay Class 2 voluntarily to protect your State Pension record.

Dividends, savings and property income

Dividend tax rose by 2 percentage points at the basic and higher rates from 6 April 2026.

Income type	2025/26	2026/27
Dividends, basic rate	8.75%	10.75%
Dividends, higher rate	33.75%	35.75%
Dividends, additional rate	39.35%	39.35%
Savings, basic, higher and additional rate	20%, 40%, 45%	20%, 40%, 45%
Property income	Normal Income Tax rates	Normal Income Tax rates

Allowance	2025/26	2026/27
Dividend Allowance	£500	£500
Personal Savings Allowance, basic rate taxpayer	£1,000	£1,000
Personal Savings Allowance, higher rate taxpayer	£500	£500
Personal Savings Allowance, additional rate taxpayer	£0	£0
Starting rate for savings (0%)	Up to £5,000	Up to £5,000

Corporation Tax

Company taxable profits	From 1 April 2025	From 1 April 2026
£50,000 or less	19%	19%
£50,001 to £250,000	25%, less marginal relief	25%, less marginal relief
Over £250,000	25%	25%

The £50,000 and £250,000 limits assume a 12-month accounting period and no associated companies. They are reduced for a shorter period, and shared between associated companies. Marginal relief standard fraction: 3/200.

Capital allowances (companies and sole traders)

Allowance	2025/26	2026/27
Full expensing (companies only, new and unused plant and machinery)	100%	100%
First-year allowance, new and unused, not cars	40% from 1 January 2026	40%²
Writing down allowance, main rate	18%	14%¹
Writing down allowance, special rate	6%	6%
New zero-emission cars (new cars only)	100%	100%, ends 31 March 2027 for companies and 5 April 2027 for individuals

Sole traders can claim the 40% first-year allowance only if they use the accruals basis.

¹ The main rate fell from 18% to 14% from 1 April 2026 for companies and 6 April 2026 for individuals. An accounting period that straddles the change uses a blended rate.

² The government has announced a rise to 50% for spending on or after 1 January 2027. This is subject to Finance Bill 2026-27. See our announced tax changes page.

VAT

Item	From 1 April 2025	From 1 April 2026
Registration threshold	£90,000	£90,000
Deregistration threshold	£88,000	£88,000
Standard rate	20%	20%
Reduced rate	5%	5%

You must register if your taxable turnover for the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days alone.
You may register voluntarily below the threshold.

Flat Rate Scheme

Item	Figure
You may join if taxable turnover for the next year will be	£150,000 or less, excluding VAT
You must leave if your income goes over	£230,000, including VAT
Limited cost business rate	16.5%

You are a limited cost business if your spending on goods is under 2% of your turnover, or over 2% but under £1,000 a year.

Sole trader and landlord allowances

Trading and property allowances

Allowance	2025/26	2026/27
Trading allowance	£1,000	£1,000
Property allowance	£1,000	£1,000

If your gross trading or property income is £1,000 or less, you do not need to tell HMRC about it.
Above £1,000, you may deduct the allowance instead of your actual expenses.

Mileage rates (simplified expenses)

Vehicle	2025/26	2026/27
Car or goods vehicle, first 10,000 business miles	45p a mile	55p a mile
Car or goods vehicle, over 10,000 business miles	25p a mile	25p a mile
Motorcycle	24p a mile	24p a mile

If your accounts do not end on 5 April, use each tax year's rate for the miles in that tax year.
The flat rate does not cover cars designed for commercial use, such as black cabs.

Making Tax Digital for Income Tax

If you are a sole trader or landlord, you must use Making Tax Digital (MTD) for Income Tax once your qualifying income passes these tests.

Qualifying income over	Based on your tax return for	You must join from
£50,000	2024/25	6 April 2026
£30,000	2025/26	6 April 2027

Qualifying income is your self-employment and property income before expenses (turnover), added together. Employment income, dividends, pensions and your share of partnership profits do not count. Some people are exempt.

Capital Gains Tax

Item	2025/26	2026/27
Annual exempt amount (individuals)	£3,000	£3,000
Rate on gains within your unused basic rate band	18%	18%
Rate on gains above the basic rate band	24%	24%
Business Asset Disposal Relief rate	14%	18%
Business Asset Disposal Relief lifetime limit	£1 million	£1 million

The same rates apply to residential property and other assets.

Minimum wage

Employers must pay at least these hourly rates.

Age or category	From 1 April 2025	From 1 April 2026
21 and over (National Living Wage)	£12.21	£12.71
18 to 20	£10.00	£10.85
Under 18	£7.55	£8.00
Apprentice	£7.55	£8.00

The apprentice rate applies to apprentices under 19, or 19 and over in their first year. After that, they get the rate for their age.

Child Benefit charge

The High Income Child Benefit Charge is the same in both years.

Item	2025/26	2026/27
Charge starts	Adjusted net income over £60,000	Adjusted net income over £60,000
Rate	1% of your Child Benefit for every £200 over £60,000	1% of your Child Benefit for every £200 over £60,000
All Child Benefit repaid	Income of £80,000 or more	Income of £80,000 or more

Key dates

Self Assessment: 2025/26 tax return

Deadline	What is due
5 October 2026	Register for Self Assessment, if you are new or did not file for 2024/25
31 October 2026	Paper tax return
30 December 2026	Online return, if you want tax collected through your PAYE tax code
31 January 2027	Online tax return. Pay any balance for 2025/26 and the first payment on account for 2026/27
31 July 2027	Second payment on account for 2026/27

You do not need to make payments on account if last year's tax bill was under £1,000, or if more than 80% of your tax was collected at source (for example through PAYE).

Limited companies

Deadline	What is due
9 months and 1 day after the end of the accounting period	Pay Corporation Tax
9 months after the end of the financial year	File accounts with Companies House (first accounts: 21 months after incorporation)
12 months after the end of the accounting period	File the Company Tax Return

This page is general guidance and does not take account of your own circumstances. Tax rates and allowances change, usually each April and after each Budget. Please take advice on your own position before acting on anything here.

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Tax rates and allowances 2025/26 and 2026/27