Income tax bands, National Insurance, dividends, student loans, and other key figures for 6 April 2025 – 5 April 2026.
England, Wales, and Northern Ireland share the same income tax rates. Scotland sets its own bands.
| Band | From | To | Rate |
|---|---|---|---|
| Personal Allowance | £0 | £12,570 | 0% |
| Basic Rate | £12,570 | £50,270 | 20% |
| Higher Rate | £50,270 | £125,140 | 40% |
| Additional Rate | £125,140 | No limit | 45% |
The Personal Allowance of £12,570 tapers by £1 for every £2 above £100,000, reaching £0 at £125,140. This creates an effective 60% marginal tax rate between £100,000 and £125,140.
Applies UK-wide regardless of region. Calculated on earnings between the Primary Threshold (£12,570) and Upper Earnings Limit (£50,270).
| Band | From | To | Rate |
|---|---|---|---|
| Below Primary Threshold | £0 | £12,570 | 0% |
| Main Rate | £12,570 | £50,270 | 8% |
| Higher Rate (above UEL) | £50,270 | No limit | 2% |
From April 2025: rate increased from 13.8% → 15%, and Secondary Threshold dropped from £9,100 → £5,000.
| Band | From | To | Rate |
|---|---|---|---|
| Below Secondary Threshold | £0 | £5,000 | 0% |
| Employer NI | £5,000 | No limit | 15% |
Apprenticeship Levy: 0.5% on all employee gross pay, on top of Employer NI, for employers with total payroll above £3m/yr.
IR35 / Inside-IR35: The fee-payer (umbrella or end-client) funds Employer NI (15% above £5k) + Apprenticeship Levy (0.5%) from the contract rate before paying the worker. Use the “Deduct employer NI from rate” checkbox in the calculator to model this.
Dividends sit on top of other income using the same band thresholds. The £500 allowance is applied first.
| Band | Allowance | Rate |
|---|---|---|
| Dividend Allowance | £500 | 0% |
| Basic Rate (up to £50,270 total income) | — | 8.75% |
| Higher Rate (£50,270–£125,140) | — | 33.75% |
| Additional Rate (above £125,140) | — | 39.35% |
Outside-IR35 Ltd directors typically take a salary up to £12,570 (nil income tax + nil employee NI) then distribute remaining profit as dividends. Corporation Tax is paid first (19–25%), then dividend tax on distribution.
| Plan | Annual Threshold | Rate | Who it applies to |
|---|---|---|---|
| Plan 1 | £24,990 | 9% | Pre-Sept 2012 English/Welsh & all Scottish loans |
| Plan 2 | £27,295 | 9% | Post-Sept 2012 English/Welsh loans |
| Plan 4 | £31,395 | 9% | Scottish undergraduate loans |
| Plan 5 | £25,000 | 9% | New loans from Aug 2023 |
| Postgrad | £21,000 | 6% | Postgraduate Master's and Doctoral loans |
All figures are for the 2025/26 tax year (6 April 2025 – 5 April 2026). This page is for guidance only and does not constitute tax advice. For personal advice consult a qualified accountant or contact HMRC. Sources: HMRC tax rates & allowances, Finance Act 2024.