Standard tax code is 1257L. This means £12,570 annual earnings allowance. No change from last tax year.
Tax Bands & Rates
2026-27
Bandwidth
Tax Rate
Taxable earnings
0-£37,700
20%
Taxable earnings
£37,701 – £125,140
40%
Taxable earnings over
£125,141
45%
Statutory Payments
Statutory Sick Pay up to 28 Weeks (no reimbursement)
£123.25 per week or 80% of average weekly earnings if lower
Statutory Maternity/Adoption Pay paid for 39 Weeks
First 6 weeks 90% of average weekly earnings
then 33 weeks at £194.32 or average weekly earnings if less
Statutory Paternity Pay 1 or 2 consecutive weeks
£194.32 or average weekly earnings if less
Small Employer Threshold
Less than £45,000 of previous year’s NIC
Recover 100% plus 8.50% compensation
Large Employer
Only on SMP/SPP/SAP
92% recovery
National Minimum Wage
Rate Per Hour
April-2025
April-2026
age 16-17
£7.55
£8.00
age 18-20
£10.00
£10.85
age 21 and above
£12.21
£12.71
Apprentice
£7.55
£8.00
National Insurance Earnings
Per Week
Per Month
Per Annum
Employees
Employers
Lower Earnings Limit (LEL)
£129
£559
£6,708
Nil
15%
Primary Threshold (PT)
£242
£1048
£12,570
8%
15%
Secondary Threshold (ST)
£96
£417
£5,000
Nil
Nil
Upper Secondary Threshold (UST)
£967
£4,189
£50,270
8%
15%
Above Upper Earnings Limit (UEL)
£967
£4,189
£50,270
2%
15%
Less up to £10,500 Annual Employment Allowance
Other rates
Statutory Redundancy maximum 20 weeks
£719 per week
Student Loans:
Plan 1 earnings above £26,900
Plan 1 earnings above £26,900
9% deduction
Plan 2 earnings above £29,385
9% deduction
Plan 4 earnings above £33,795
9% deduction
Plan 5 earnings above £25,000
9% deduction
Postgraduate loan(PGL) earnings above £21,000
6% deduction
Childcare Vouchers (Salary Sacrifice)
Maximum £243 per month (£55 per week) 20%
Maximum £124 per month (£28 per week) 40%
Maximum £97 per month (£22 per week) 45%
Maximum £124 per month (£28 per week) 40%
Maximum £97 per month (£22 per week) 45%
Employee Vehicle Mileage Payments for business travel
Motor Cars and Vans
First 10,000 business miles*
45p per mile
Over 10,000 business miles
25p per mile
Motorcycles
24p per mile
Cycles
20p per mile
* For National Insurance purposes, the higher rate applies to all miles, not only the first 10,000.