Tax year 2026/27
UK tax rates and allowances for 2026/27.
The figures small businesses look up most, on one page: income tax, National Insurance, dividends, corporation tax, VAT and capital gains. Every figure is checked against GOV.UK and linked to its source.
- Personal allowance
- £12,570
- VAT threshold
- £90,000
- Corporation tax
- 19% to 25%
- Dividend allowance
- £500
Last checked against GOV.UK on 30 September 2026, and reviewed every April.
Income tax
| Personal allowance | £12,570 at 0% |
|---|---|
| Basic rate | £12,571 to £50,270 at 20% |
| Higher rate | £50,271 to £125,140 at 40% |
| Additional rate | Over £125,140 at 45% |
England, Wales and Northern Ireland. Scotland sets its own bands. The personal allowance falls by £1 for every £2 of income over £100,000.
Source : GOV.UK income tax rates (opens in a new tab)National Insurance
| Employees (Class 1) | 8% on £12,570 to £50,270, 2% above |
|---|---|
| Employers (Class 1) | 15% above £5,000 a year |
| Employment Allowance | Up to £10,500 off employer's NI |
| Self-employed (Class 4) | 6% on profits £12,570 to £50,270, 2% above |
The Employment Allowance is not available to a company whose only employee paid above the secondary threshold is a single director.
Source : GOV.UK rates and thresholds for employers (opens in a new tab)Dividends
| Dividend allowance | £500 at 0% |
|---|---|
| Basic rate | £12,571 to £50,270 at 10.75% |
| Higher rate | £50,271 to £125,140 at 35.75% |
| Additional rate | Over £125,140 at 39.35% |
Dividends use the income tax bands and sit on top of your other income. The allowance is taxed at 0% but still uses up your band.
Source : GOV.UK changes to tax rates for property, savings and dividend income (opens in a new tab)Corporation tax
| Small profits rate | 19% on profits up to £50,000 |
|---|---|
| Marginal relief | Profits between £50,000 and £250,000 |
| Main rate | 25% on profits over £250,000 |
Limits are shared between associated companies and reduced for short accounting periods.
Source : GOV.UK corporation tax marginal relief (opens in a new tab)VAT
| Standard rate | 20% |
|---|---|
| Reduced rate | 5% |
| Registration threshold | £90,000 taxable turnover in any rolling 12 months |
| Deregistration threshold | £88,000 |
Capital gains tax
| Annual exempt amount | £3,000 |
|---|---|
| Basic rate taxpayers | 18% |
| Higher and additional rate | 24% |
| Business Asset Disposal Relief | 18% |
Other allowances
| Trading allowance | £1,000 |
|---|---|
| Property allowance | £1,000 |
| Marriage allowance | £1,260 transferable |
| Personal savings allowance | £1,000 basic rate, £500 higher rate |
| Starting rate for savings | Up to £5,000 |
Making Tax Digital for Income Tax
| Over £50,000 | From 6 April 2026 |
|---|---|
| Over £30,000 | From 6 April 2027 |
| Over £20,000 | From 6 April 2028 |
Qualifying income is gross self-employment plus property income, before expenses.
Source : GOV.UK find out if and when you need to use MTD (opens in a new tab)Rather someone applied these for you?
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