PAYROLL FACTCARD 2026-27
Tax rates and allowances Student Loan recovery Pensions caps and allowances
Statutory payments National Insurance
Company cars and vans National Minimum Wage Key payroll dates
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TAX RATES AND ALLOWANCES
UK-wide tax allowances
2025-26
2026-27
£12,570pa £1,048pm
£12,570pa £1,048pm
Personal Allowance (regardless of age)
£242pw
£242pw
Income limit for Personal Allowance
£100,000
£100,000
Blind person’s allowance
£3,130
£3,250
Marriage allowance
£1,260
£1,260
Rates for rUK (England, Wales, Northern Ireland)
2025-26
2026-27
Income tax bands
20% (basic rate)
£1 - £37,700
£1 - £37,700
40% (higher rate)
£37,701 - £125,140 £37,701 - £125,140
45% (additional rate)
Over £125,140
Over £125,140
Emergency tax code
1257L W1/M1
1257L W1/M1
Rates for Scotland (S prefix)
2025-26
2026-27
Income tax bands
19% (starter)
£1 - £2,827
£1 - £3,967
20% (basic)
£2,828 - £14,921
£3,968 - £16,956
21% (intermediate)
£14,922 - £31,092 £16,957 - £31,092
42% (higher)
£31,093 - £62,430 £31,093 - £62,430
45% (advanced)
£62,431 - £125,140 £62,431 - £125,140
48% (top)
Over £125,140
Over £125,140
Rates for Wales (C prefix)
2025-26
2026-27
Income tax bands
20% (basic)
£1 - £37,700
£1 - £37,700
40% (higher)
£37,701 - £125,140 £37,701 - £125,140
45% (additional)
Over £125,140
Over £125,140
STUDENT LOAN RECOVERY
2025-26
2026-27
Plan 1
£26,065 pa £26,900pa £2,172.08 pm £2,241.66 pm £501.25 pw £517.30 pw
Employee earnings threshold at which repayment of Student Loan begins
Rate of deduction
9%
9%
Plan 2
£28,470pa £29,385pa £2,372.50 pm £2,448.75 pm £547.50 pw £565.10 pw
Employee earnings threshold at which repayment of Student Loan begins
Rate of deduction
9%
9%
Plan 4
£32,745pa £33,795pa £2,728.75 pm £2,816.25 pm £629.71 pw £649.90 pw
Employee earnings threshold at which repayment of Student Loan begins
Rate of deduction
9%
9%
Plan 5
£25,000pa £2,083.33 pm £480.76pw
Employee earnings threshold at which repayment of Student Loan begins
Rate of deduction
9%
For students in England starting their course after 1 August 2023. Earliest repayments begin from 6 April 2026.
Postgraduate loans
£21,000pa £21,000pa £1,750 pm £1,750 pm £403.84 pw £403.84 pw
Employee earnings threshold at which repayment of Student Loan begins
Rate of deduction
6%
6%
pa - per annum . pm - per month . pw - per week
THINK PAY. THINK CIPP cipp.org.uk
MEMB IPPE Q TRAIN
STATUTORY PAYMENTS
2025-26
2026-27
Qualifying earnings level
£125 pw
£129 pw
Statutory Maternity Pay (SMP) First 6 weeks
90% of AWE
90% of AWE
lesser of 90% of AWE or £187.18
lesser of 90% of AWE or £194.32
Further 33 weeks
Statutory Adoption Pay (SAP) First 6 weeks
90% of AWE
90% of AWE
lesser of 90% of AWE or £187.18
lesser of 90% of AWE or £194.32
Further 33 weeks
Statutory Paternity Pay (SPP)
lesser of 90% of AWE or £187.18
lesser of 90% of AWE or £194.32
2 weeks
Statutory Shared Parental Pay (ShPP)
lesser of 90% of AWE or £187.18
lesser of 90% of AWE or £194.32
Maximum of 37 weeks
Statutory Parental Bereavement Pay (SPBP)
lesser of 90% of AWE or £187.18
lesser of 90% of AWE or £194.32
2 weeks
Statutory Neonatal Care Pay (SNCP) Incoming from 6 April 2025 - currently applies to England, Wales and Scotland
lesser of 90% of AWE or £187.18
lesser of 90% of AWE or £194.32
Up to 12 weeks
Employers can recover 92% of SMP, SAP, SPP, ShPP, SPBP and SNCP paid. Small employers can recover 109% from 6 April 2026. The Small Employers Relief threshold is £45,000.
Statutory Sick Pay (SSP)
lesser of 80% of AWE or £123.25
Standard weekly rate
£118.75
AWE - Average Weekly Earnings
BERSHIP QUALIFICATIONS NING
EVENTS BEST PRACTICE CONSULTANCY
NATIONAL INSURANCE
2025-26
2026-27
Employment Allowance
£10,500 pa
£10,500 pa
Thresholds 2026-27 Class 1 NICs
Weekly Monthly Annual
Lower Earnings Limit (LEL)
£129
£559 £6,708
Primary Threshold (PT)
£242
£1,048 £12,570
Secondary Threshold (ST)
£96
£417 £5,000
Upper Earnings Limit (UEL)
£967
£4,189 £50,270
Upper Secondary Threshold (UST) for under 21s
£967
£4,189 £50,270
Apprentice Upper Secondary Threshold (AUST) for under 25s
£967
£4,189 £50,270
Veterans Upper Secondary Threshold (VUST)
£967
£4,189 £50,270
Freeport Upper Secondary Threshold (FUST)
£481
£2,083 £25,000
Investment Zone Upper Secondary Threshold (IZUST)
£481
£2,083 £25,000
Employee (primary contributions) rates 2026-27 Category letter Up to LEL
LEL to PT PT to UEL Above UEL
A, F, H, M, N, V
Nil
0%
8%
2%
D, J, L, Z
Nil
0%
2%
2%
B, E, I
Nil
0%
1.85%
2%
C, K, S
Nil
Nil
Nil
Nil
Employer (secondary contributions) rates 2026-27
FUST/IZUST to UEL/ UST/AUST/ VUST
Above UEL/UST/ AUST/ VUST
LEL to FUST/ IZUST
Category letter
Up to ST ST to LEL
A, B, C, J
Nil
15% 15% 15% 15%
H , M , Z
Nil
0%
0%
0% 15%
V
Nil
0%
0%
0% 15%
F, I, L, S, D, E, K, N
Nil
0%
0% 15% 15%
Category letter definitions A (standard), B (reduced), C (State Pension age), D (deferment investment zone), E (reduced investment zone), F (standard freeport), H (apprentice under 25), I (reduced freeport), J (deferment), K (State Pension investment zone), L (deferment freeport), M (standard under 21), N (standard investment zone), S (State Pension age freeport), V (standard veteran), Z (deferment under 21)
2026-27
Class 1A
15%
Class 1B NICs
15%
Class 3 Voluntary Contributions
£18.40pw
COMPANY CARS AND VANS
CO 2 emissions
2025-26
2026-27
Electric range
Appropriate percentage (%)
Appropriate percentage (%)
CO 2 emissions
0g/km
3%
4%
1-50g/km
130+
3%
4%
1-50g/km
70-129
6%
7%
1-50g/km
40-69
9%
10%
1-50g/km
30-39
13%
14%
1-50g/km
< 30
15%
16%
51-54g/km
16%
17%
Each additional 5g/km
plus 1%
plus 1%
Maximum percentage reached at
155+ g/km 155+ g/km
Non-RDE2 diesel supplement
4%
4%
Maximum benefit in all cases
37%
37%
2025-26
2026-27
Van benefit charge
£4,020 pa
£4,170 pa
Fuel scale charges
2025-26
2026-27
Car fuel benefit charge
£28,200 pa
£29,200 pa
Van fuel benefit charge
£769 pa
£798 pa
Mileage allowance payments
First 10,000 miles
Over 10,000 miles
Vehicle
Privately-owned cars and vans
45p
25p
Bicycle rate
20p
20p
Motorcycle rate
24p
24p
Passenger rate (each)
5p
5p
Advisory fuel rates
HMRC update these quarterly. To access the latest and previous years rates, scan the QR code or visit: https://www.gov.uk/guidance/advisory-fuel-rates
NATIONAL MINIMUM WAGE
From 1 April 2025
From 1 April 2026
Category of worker
Aged 21 years and over (National Living Wage)
£12.21
£12.71
Aged 18-20 years
£10.00
£10.85
Aged 16-17 years
£7.55
£8.00
Apprentices aged under 19 and apprentices aged 19 or over in the first year of apprenticeship (the Apprentice rate)
£7.55
£8.00
Accomodation offet – Daily rate
£10.66
£11.10
Accomodation offet – Weekly rate
£74.62
£77.70
PENSION CAPS/ALLOWANCES
2025-26
2026-27
Annual allowance
£60,000
£60,000
Automatic enrolment earnings trigger
£10,000
£10,000
Automatic enrolment lower level of qualifying earnings Automatic enrolment upper level of qualifying earnings
£6,240
£6,240
£50,270
£50,270
Lump sum allowance
£268,275
£268,275
Lump sum and death benefit allowance
£1,073,100
£1,073,100
MISCELLANEOUS
From 6 April 2024
From 6 April 2025
Statutory maximum redundancy pay
England, Wales and Scotland
£700 pw
£719 pw
From 6 April 2024
From 6 April 2025
Northern Ireland
£729 pw
£749 pw
From 6 April 2024
From 6 April 2025
Employment protection (daily rate)
England, Wales and Scotland
£38
£39
From 6 April 2024
From 6 April 2025
Northern Ireland
£38
£39
KEY PAYROLL DATES
National Living Wage and National Minimum Wage legislation becomes effective. The new rates will apply to the first pay reference period that begins on or after 1 April 2026
1 April
5 April
Deadline for new registrations for payrolling benefits
Start of new tax year. New tax and NICs bands and thresholds effective
6 April
19 April
Deadline for RTI final submission of the year
31 May
Deadline for issuing form P60 to employees
Deadline for issuing payrolled benefits information to employees
1 June
Deadline for submitting form P11D and form P11D(b) to HMRC
6 July
Deadline for issuing form P11D to employees
19 July
Class 1A payment due if paying by cheque
22 July
Class 1A payment due if paying electronically
19 October
Class 1B payment due (PSAs) if paying by cheque
22 October
Class 1B payment due (PSAs) if paying electronically
The information aggregated for this document has been obtained from the relevant government bodies and is correct at the time of publication. This document provides a summary guide only and is not intended as a comprehensive representation of the law. V26a
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