Verified UK reference · 2026/27
UK payroll rates & thresholds 2026/27
One source-linked reference for PAYE Income Tax, employee and employer National Insurance, student loans, minimum wage and statutory pay from April 2026. The tables show annual figures alongside the pay-period thresholds payroll actually uses.
Tax year: 6 April 2026 to 5 April 2027. Minimum-wage rates start 1 April 2026; Statutory Maternity Pay starts 5 April 2026. Last source check: 25 August 2026.
At a glance
Four payroll numbers to orient the year
Personal Allowance
£12,570
Standard annual amount
Employee NI
8%
Category A main rate
Employer NI
15%
Above the secondary threshold
Secondary threshold
£5,000
Annual, per employee
PAYE Income Tax
Income Tax bands by where you live
These gross-income ranges assume the standard £12,570Personal Allowance. It falls by £1 for every £2 of adjusted net income above £100,000 and reaches zero at £125,140. Scotland sets different rates for wages, pensions and most other earned income; savings and dividends use UK-wide rules.
England, Wales and Northern Ireland
| Band | Rate | Gross income with standard allowance |
|---|---|---|
| Personal Allowance | 0% | Up to £12,570 |
| Basic rate | 20% | £12,571 to £50,270 |
| Higher rate | 40% | £50,271 to £125,140 |
| Additional rate | 45% | Over £125,140 |
Scotland
| Band | Rate | Gross income with standard allowance |
|---|---|---|
| Personal Allowance | 0% | Up to £12,570 |
| Starter rate | 19% | £12,571 to £16,537 |
| Basic rate | 20% | £16,538 to £29,526 |
| Intermediate rate | 21% | £29,527 to £43,662 |
| Higher rate | 42% | £43,663 to £75,000 |
| Advanced rate | 45% | £75,001 to £125,140 |
| Top rate | 48% | Over £125,140 |
Class 1 National Insurance
Employee and employer NI use different starting points
For the common category A, employee NI is 8% above the Primary Threshold up to the Upper Earnings Limit, then 2%. Employer NI normally starts much earlier, at the Secondary Threshold, and continues at 15% without an upper cap. Other category letters can change either side of the calculation.
| Threshold | Weekly | Monthly | Annual |
|---|---|---|---|
| Lower Earnings Limit | £129 | £559 | £6,708 |
| Primary Threshold | £242 | £1,048 | £12,570 |
| Secondary Threshold | £96 | £417 | £5,000 |
| Upper Earnings Limit | £967 | £4,189 | £50,270 |
Employee — category A
- 0% up to £12,570 a year
- 8% from £12,570 to £50,270
- 2% above £50,270
Employer — category A
- 0% up to £5,000 a year
- 15% on all earnings above £5,000
- No upper earnings cap on the standard employer rate
Employer-level figures
Allowances and levies are not per-employee discounts
Employment Allowance
£10,500
Eligible employers can reduce their total secondary Class 1 bill by up to this annual amount. Eligibility rules still apply.
Apprenticeship Levy
0.5%
Charged on the annual pay bill, less a £15,000allowance; it generally begins above a £3,000,000 pay bill.
Class 1A / 1B NI
15%
The 2026/27 rate for taxable benefits and PAYE Settlement Agreements is also 15%.
Payroll deductions
Student and postgraduate loan thresholds
Payroll assesses each pay period, not a year-end average. The percentage applies only to earnings above the relevant threshold, and HMRC requires the final pay-period deduction to be rounded down to the nearest whole pound.
| Plan | Annual threshold | Monthly threshold | Rate above threshold |
|---|---|---|---|
| Plan 1 | £26,900 | £2,241.66 | 9% |
| Plan 2 | £29,385 | £2,448.75 | 9% |
| Plan 4 | £33,795 | £2,816.25 | 9% |
| Plan 5 | £25,000 | £2,083.33 | 9% |
| Postgraduate Loan | £21,000 | £1,750 | 6% |
From April 2026
Minimum wage and statutory weekly pay
National Minimum Wage — from 1 April 2026
| Worker | Hourly rate |
|---|---|
| 21 and over (National Living Wage) | £12.71 |
| 18 to 20 | £10.85 |
| Under 18 | £8 |
| Apprentice (under 19, or in the first year) | £8 |
Statutory pay — weekly rates
| Payment | 2026/27 rate |
|---|---|
| SMP — first 6 weeks | 90% of average weekly earnings |
| SMP — remaining 33 weeks | Lower of £194.32 or 90% of AWE |
| Paternity, adoption, shared parental, bereavement and neonatal care pay | Lower of £194.32 or 90% of AWE |
| Statutory Sick Pay | Lower of £123.25 or 80% of average weekly earnings |
Eligibility, average-weekly-earnings tests and qualifying-day rules can change the amount due. Use the dedicated calculator or payroll software for an actual payment schedule.
From reference to decision
Use the table to check the input, then calculate the outcome
Primary sources
Every number traces to current official guidance
- HMRC — Rates and thresholds for employers 2026 to 2027
PAYE, Class 1 NI, minimum wage, statutory pay, student loans, Employment Allowance and Apprenticeship Levy.
- HMRC — Income Tax rates and allowances
Personal Allowance, taper, UK tax bands and 2026/27 rates.
- GOV.UK — Scottish Income Tax
Gross-income presentation of the 2026/27 Scottish earned-income bands.
- HMRC — Student and Postgraduate Loan deduction tables 2026 to 2027
Annual, monthly and weekly plan thresholds, deduction rates and payroll rounding method.
- Low Pay Commission — The National Minimum Wage in 2026
Rates effective from 1 April 2026 and the annual change by age band.
Scope and limitations
This is a planning and reconciliation reference, not payroll software or personal tax advice. Tax codes, benefits, pension method, NI category, multiple jobs, prior-period earnings and payroll rounding can change an actual payslip. Employers should use HMRC-recognised payroll software and the employee's current notices.