The Spring Statement
2026
Registered Pensions (Table B)
2026/27 £60,000
2025/26 £60,000
Annual Allowance (AA)
Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600. The AA is usually reduced by £1 for every £2 by which relevant income exceeds £260,000, down to a minimum AA of £10,000. The AA can also be reduced to £10,000, where certain pension drawings have been made. The maximum tax-free pension lump sum is £268,275 (25% of £1,073,100), unless a higher amount is “protected”. Car and Fuel Benefits (Table C) Cars Taxable benefit: List price multiplied by chargeable percentage. CO 2 emissions Electric range 2026/27 2025/26 g/km Miles % % 0 N/A 4 3 1-50 >130 4 3 1-50 70 - 129 7 6 1-50 40 - 69 10 9 1-50 30 - 39 14 13 1-50 <30 16 15 51-54 N/A 17 16 Then a further 1% for each 5g/km CO 2 emissions, up to a maximum of 37%. Diesel cars that are not RDE2 standard suffer a 4% supplement on the above figures but are still capped at 37%. Certain plug-in hybrid vehicles first registered after 31 December 2024, which have an emissions figure of 51 or more, are deemed to have an emissions figure of 1. Car Fuel Where employer provides fuel for private motoring in an employer-owned car, the CO 2 -based percentage from above table is multiplied by £29,200 (2025/26: £28,200). National Insurance Contributions 2026/27 (Table D) Class 1 (Employees) Employee Employer Main NIC rate 8% 15% No NIC on first £242pw £96pw Main rate charged up to* £967pw no limit 2% rate on earnings above £967pw N/A Employment allowance per qualifying business N/A £10,500 *Nil rate of employer NIC on earnings up to £967pw for employees aged under 21, apprentices aged under 25 and ex-armed forces personnel in their first twelve months of civilian employment. Employer contributions (at 15%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B). Class 2 (Self-employed) Flat rate per week if profits below £7,105 (voluntary) £3.65
Class 3 (Voluntary) Flat rate per week
£18.40
Class 4 (Self-employed) On profits £12,570 – £50,270
6%
On profits over £50,270 2% Employees with earnings above £129 per week and the self-employed with annual profits over £7,105 (or who pay voluntary Class 2 contributions) can access entitlement to contributory benefits.
Made with FlippingBook Learn more on our blog