The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. This summary brings together rates commonly used by individuals, employers and owner-managed businesses. Reliefs, residence, associated companies and the type of income can change the result.
Income Tax
For England, Wales and Northern Ireland, the standard Personal Allowance is £12,570. It reduces by £1 for every £2 of adjusted net income above £100,000 and is fully withdrawn at £125,140. The basic rate is 20% from £12,571 to £50,270, the higher rate is 40% from £50,271 to £125,140 and the additional rate is 45% above £125,140. Scottish bands differ.
Dividends and savings
The dividend allowance is £500. Dividend income above available allowances is taxed at 10.75%, 35.75% or 39.35% according to the applicable Income Tax band. The Personal Savings Allowance is up to £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers; additional-rate taxpayers receive no Personal Savings Allowance.
National Insurance
For a standard category A employee, Class 1 National Insurance is generally 8% between the £12,570 primary threshold and £50,270 upper earnings limit, then 2% above. The standard employer rate is 15% above the £5,000 annual secondary threshold. Category letters and reliefs can change the calculation.
Corporation Tax, VAT and Capital Gains Tax
The Corporation Tax small-profits rate is 19% up to £50,000, the main rate is 25% above £250,000 and Marginal Relief may apply between. Thresholds reduce for associated companies and short periods. The VAT registration threshold is £90,000 and deregistration threshold is £88,000. The individual Capital Gains Tax annual exempt amount is £3,000; general rates are 18% within the available basic-rate band and 24% above it.
Use the figures carefully
Rates are only part of a tax calculation. Obtain advice before a significant payment, disposal, extraction of company profits or change of business structure.
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