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Tax rates & thresholds 2026/27
The headline numbers for the 2026/27 tax year. What these mean for your situation is a different question. That's what the free consultation is for.
Income tax (England & NI)
| Personal allowance | £12,570 Frozen to April 2028; tapered above £100,000 income |
|---|---|
| Basic rate (20%) | £12,571 – £50,270 |
| Higher rate (40%) | £50,271 – £125,140 |
| Additional rate (45%) | Over £125,140 |
Dividends
| Dividend allowance | £500 |
|---|---|
| Basic / higher / additional rate | 8.75% / 33.75% / 39.35% |
Corporation tax
| Small profits rate | 19% Profits up to £50,000 |
|---|---|
| Main rate | 25% Profits over £250,000 |
| Marginal relief band | £50,000 – £250,000 Effective marginal rate ~26.5%; thresholds divided between associated companies |
VAT
| Standard rate | 20% |
|---|---|
| Registration threshold | £90,000 Rolling 12-month taxable turnover |
| Deregistration threshold | £88,000 |
National Insurance
| Employee main rate (Class 1) | 8% On earnings between £12,570 and £50,270; 2% above |
|---|---|
| Employer rate | 15% On earnings above £5,000/year secondary threshold |
| Employment Allowance | £10,500 For eligible employers |
Making Tax Digital for Income Tax
| From April 2026 | Income over £50,000 Now in force: sole traders and landlords |
|---|---|
| From April 2027 | Income over £30,000 |
| From April 2028 | Income over £20,000 |