Every April, a wave of changes hits your pay packet, tax bill, and benefits. Here is a comprehensive rundown of what is changing from 6 April 2026 and how it affects your finances.
Income Tax
Tax Bands and Rates 2026/27
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
The Personal Allowance remains frozen at £12,570. It has been stuck at this level since 2021/22, and the freeze is set to continue until at least 2028. With wages rising, more people are being pulled into higher tax bands through fiscal drag.
If you earn over £100,000, your Personal Allowance is reduced by £1 for every £2 of income above that threshold. It disappears entirely at £125,140.
Scottish Income Tax 2026/27
Scotland sets its own income tax rates and bands for non-savings, non-dividend income.
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 – £14,876 | 19% |
| Basic rate | £14,877 – £26,561 | 20% |
| Intermediate rate | £26,562 – £43,662 | 21% |
| Higher rate | £43,663 – £75,000 | 42% |
| Advanced rate | £75,001 – £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
Use our calculator: Take-Home Pay Calculator
National Insurance
Employee NI 2026/27
| Earnings | Rate |
|---|---|
| Below £12,570 | 0% |
| £12,570 – £50,270 | 8% |
| Above £50,270 | 2% |
Employer NI 2026/27
| Earnings | Rate |
|---|---|
| Below £5,000 | 0% |
| Above £5,000 | 15% |
The employer NI threshold dropped significantly from £9,100 to £5,000, and the rate rose from 13.8% to 15% — a change introduced in April 2025 that continues to apply. This increases the cost of employing staff and may affect pay rises and hiring decisions.
Self-Employed NI 2026/27
| Class | Details |
|---|---|
| Class 2 | Abolished — no longer payable |
| Class 4 (£12,570 – £50,270) | 6% |
| Class 4 (above £50,270) | 2% |
Related: National Insurance Explained
National Living Wage and Minimum Wage
| Age group | Hourly rate from April 2026 |
|---|---|
| 21 and over (National Living Wage) | £12.21 |
| 18–20 | £10.00 |
| Under 18 | £7.55 |
| Apprentice rate | £7.55 |
The National Living Wage for 21+ increased from £11.44 to £12.21 — a rise of 6.7%. For a full-time worker doing 37.5 hours a week, that works out to roughly £23,800 a year before tax.
Use our calculator: Salary to Hourly Rate Calculator
State Pension
New State Pension (for those who reached State Pension age on or after 6 April 2016)
| Period | Amount |
|---|---|
| Weekly | £230.25 |
| Monthly | Approx. £1,001 |
| Annual | £11,973 |
Basic State Pension (for those who reached State Pension age before 6 April 2016)
| Period | Amount |
|---|---|
| Weekly | £176.45 |
| Monthly | Approx. £767 |
| Annual | £9,175 |
The triple lock guarantee ensures the State Pension rises by the highest of earnings growth, CPI inflation, or 2.5%.
Related: State Pension Guide
Benefits
Key benefit rates from April 2026:
Universal Credit
| Element | Monthly amount |
|---|---|
| Single under 25 | £311.68 |
| Single 25 or over | £393.45 |
| Joint claimants both under 25 | £489.23 |
| Joint claimants one or both 25+ | £617.56 |
| First child (born before 6 April 2017) | £333.33 |
| Second child and subsequent | £287.92 |
Other Key Benefits
| Benefit | Weekly rate |
|---|---|
| Child Benefit (eldest child) | £26.05 |
| Child Benefit (other children) | £17.25 |
| Carer’s Allowance | £81.90 |
| PIP daily living (enhanced) | £108.55 |
| PIP mobility (enhanced) | £75.75 |
| Attendance Allowance (higher) | £108.55 |
Related: Complete UK Benefits Guide
ISAs and Savings
ISA Allowances 2026/27
| ISA type | Annual limit |
|---|---|
| Overall ISA allowance | £20,000 |
| Lifetime ISA (LISA) | £4,000 (part of £20,000) |
| Junior ISA | £9,000 |
| Help to Save | £50 per month |
You can split the £20,000 allowance across Cash ISAs, Stocks & Shares ISAs, Innovative Finance ISAs, and Lifetime ISAs in any combination.
Other Savings Allowances
| Allowance | Amount |
|---|---|
| Personal Savings Allowance (basic rate) | £1,000 |
| Personal Savings Allowance (higher rate) | £500 |
| Personal Savings Allowance (additional rate) | £0 |
| Dividend Allowance | £500 |
| Capital Gains Tax annual exempt amount | £3,000 |
The Dividend Allowance and CGT annual exempt amount have both been significantly cut in recent years. Plan around these lower thresholds, especially if you hold investments outside an ISA.
Related: ISA Allowance Guide
Pensions
Key Pension Limits 2026/27
| Limit | Amount |
|---|---|
| Annual Allowance | £60,000 |
| Money Purchase Annual Allowance | £10,000 |
| Tax-free lump sum (standard) | £268,275 |
| Lifetime Allowance | Abolished |
The Lifetime Allowance was abolished from April 2024. There is no cap on the total you can hold in your pension, but the tax-free lump sum is capped at 25% of your pot up to a maximum of £268,275 (unless you have transitional protection for a higher amount).
You get tax relief on pension contributions at your marginal rate. For higher-rate taxpayers, contributing to a pension remains one of the most tax-efficient things you can do.
Related: Pension Contributions Guide
Stamp Duty
England and Northern Ireland (from April 2025)
| Purchase price band | Standard rate | First-time buyer rate |
|---|---|---|
| Up to £125,000 | 0% | 0% |
| £125,001 – £250,000 | 2% | 0% |
| £250,001 – £300,000 | 5% | 0% |
| £300,001 – £500,000 | 5% | 5% |
| £500,001 – £925,000 | 5% | 5% |
| £925,001 – £1.5m | 10% | 10% |
| Over £1.5m | 12% | 12% |
First-time buyers pay no stamp duty on the first £300,000 on properties up to £500,000. Higher rates apply for additional properties (3% surcharge) and non-UK residents (2% surcharge).
Use our calculator: Stamp Duty Calculator
Student Loans
Repayment Thresholds from April 2026
| Plan | Annual threshold | Repayment rate |
|---|---|---|
| Plan 1 (pre-2012) | £24,990 | 9% |
| Plan 2 (post-2012) | £27,295 | 9% |
| Plan 4 (Scotland) | £31,395 | 9% |
| Plan 5 (from 2023) | £25,000 | 9% |
| Postgraduate loan | £21,000 | 6% |
Related: Student Loan Repayment Calculator
What You Should Do Before 5 April
The end of the 2025/26 tax year on 5 April is your deadline to use this year’s allowances. Consider these actions:
- Use your ISA allowance — You cannot carry it over. Contribute up to £20,000 before 5 April.
- Top up your pension — Make the most of your £60,000 Annual Allowance. You may also be able to carry forward unused allowance from the previous three years.
- Use your CGT exempt amount — If you have gains, consider realising up to £3,000 of gains tax-free.
- Claim Marriage Allowance — If one partner earns under £12,570 and the other is a basic-rate taxpayer, transfer £1,260 of Personal Allowance to save up to £252 a year. You can backdate claims up to four years.
- Check your tax code — Make sure your code is correct for the coming year. An incorrect code means you pay too much or too little tax.
- Review salary sacrifice — Pension and benefits sacrifice arrangements are highly tax-efficient, especially with higher employer NI rates.
Related: Tax Year-End Checklist
Key Dates for the 2026/27 Tax Year
| Date | Event |
|---|---|
| 5 April 2026 | End of 2025/26 tax year |
| 6 April 2026 | Start of 2026/27 tax year |
| 6 April 2026 | New NLW and benefit rates apply |
| 31 July 2026 | Second payment on account for 2025/26 |
| 5 October 2026 | Register for Self Assessment if newly self-employed |
| 31 October 2026 | Paper Self Assessment deadline for 2025/26 |
| 30 December 2026 | File online and request PAYE coding adjustment |
| 31 January 2027 | Online Self Assessment deadline and payment for 2025/26 |
Related: Self Assessment Guide