Written for the 2026/27 tax year. Checked against GOV.UK on 6 October 2026.
The 2026/27 tax year began on 6 April 2026. Most personal tax figures are the same as in 2025/26. A few are not. This guide puts the two years side by side for employees, the self-employed, directors, savers and investors. It comes from Wainwrights Accountants in Bromborough, Wirral.
Key personal tax figures for 2026/27
| What | 2026/27 figure | Source |
|---|---|---|
| Personal Allowance | £12,570 | GOV.UK: Income Tax rates |
| Income Tax rates (England, Wales and Northern Ireland) | 20%, 40% and 45% | GOV.UK: Income Tax rates |
| Dividend allowance and rates | £500, then 10.75%, 35.75% and 39.35% | GOV.UK: tax on dividends |
| Capital Gains Tax allowance and rates | £3,000, then 18% or 24% | GOV.UK: Capital Gains Tax rates |
| Employee National Insurance | 8% on pay from £242 to £967 a week, then 2% | GOV.UK: rates and thresholds for employers 2026 to 2027 |
| Class 4 National Insurance (self-employed) | 6% on profits over £12,570 up to £50,270, then 2% | GOV.UK: self-employed National Insurance rates |
| ISA allowance | £20,000 | GOV.UK: Individual Savings Accounts |
| Pension annual allowance | £60,000 | GOV.UK: pension annual allowance |
| Mileage rate, cars and vans | 55p a mile for the first 10,000 miles, then 25p | GOV.UK: mileage and fuel rates |
What changed for personal tax on 6 April 2026?
Four changes stand out. Dividend tax went up by 2 percentage points at the basic and higher rates. The mileage rate for cars and vans rose from 45p to 55p for the first 10,000 miles. Employees cannot claim tax relief for working from home for 2026/27. Business Asset Disposal Relief now gives a rate of 18%, up from 14%.
The Personal Allowance, the Income Tax bands for England, Wales and Northern Ireland, the main National Insurance rates, the Capital Gains Tax allowance, and the ISA and pension allowances did not move. Income Tax bands are different if you live in Scotland.
This guide covers personal tax. For Corporation Tax, VAT, employer costs and deadlines, see our 2026/27 tax year guide. For the year before, see our earlier article, written for 2025/26.
How do the 2026/27 figures compare with 2025/26?
Most are identical. The Personal Allowance is £12,570 in both years, and the Income Tax bands and rates for England, Wales and Northern Ireland are the same. So are the main National Insurance rates and the savings, ISA and pension allowances. Dividend rates, the mileage rate and a few smaller figures changed.
Income Tax bands are different if you live in Scotland. The bands below are for England, Wales and Northern Ireland.
2025/26 and 2026/27 side by side
| What | 2025/26 | 2026/27 | GOV.UK source, 2025/26 | GOV.UK source, 2026/27 |
|---|---|---|---|---|
| Personal Allowance | £12,570 | £12,570 (no change) | Previous tax years | Income Tax rates |
| Basic rate | 20% on income over £12,570 up to £50,270 | 20% on income over £12,570 up to £50,270 (no change) | Previous tax years | Income Tax rates |
| Higher rate | 40% on £50,271 to £125,140 | 40% on £50,271 to £125,140 (no change) | Previous tax years | Income Tax rates |
| Additional rate | 45% over £125,140 | 45% over £125,140 (no change) | Budget 2025 rates annex | Income Tax rates |
| Dividend allowance | £500 | £500 (no change) | HMRC Income Tax rates | Tax on dividends |
| Dividend rates | 8.75%, 33.75%, 39.35% | 10.75%, 35.75%, 39.35% | HMRC Income Tax rates | Tax on dividends |
| Personal savings allowance | £1,000 (basic rate), £500 (higher rate) | £1,000 (basic rate), £500 (higher rate), none for additional rate taxpayers (no change) | Budget 2025 rates annex | Tax on savings interest |
| Starting rate for savings | 0% on up to £5,000 | 0% on up to £5,000 (no change) | HMRC Income Tax rates | Tax on savings interest |
| Capital Gains Tax annual exempt amount | £3,000 | £3,000 (no change) | HMRC Capital Gains Tax rates | Capital Gains Tax allowances |
| Capital Gains Tax rates for individuals | 18% and 24% | 18% and 24% (no change) | HMRC Capital Gains Tax rates | Capital Gains Tax rates |
| Business Asset Disposal Relief rate | 14% | 18% | Business Asset Disposal Relief | Business Asset Disposal Relief |
| Employee National Insurance | 8% on pay from £242 to £967 a week, then 2% | 8% on pay from £242 to £967 a week, then 2% (no change) | Employer rates 2025 to 2026 | Employer rates 2026 to 2027 |
| Lower earnings limit | £125 a week | £129 a week | Employer rates 2025 to 2026 | Employer rates 2026 to 2027 |
| Class 4 National Insurance | 6% on profits over £12,570 up to £50,270, then 2% | 6% on profits over £12,570 up to £50,270, then 2% (no change) | HMRC National Insurance rates | Self-employed National Insurance |
| Class 2 small profits threshold | £6,845 | £7,105 | HMRC National Insurance rates | Self-employed National Insurance |
| Voluntary Class 2 rate | £3.50 a week | £3.65 a week | HMRC National Insurance rates | Self-employed National Insurance |
| ISA allowance | £20,000 | £20,000 (no change) | Budget 2025 rates annex | Individual Savings Accounts |
| Pension annual allowance | £60,000 | £60,000 (no change) | HMRC pension schemes rates | Pension annual allowance |
| High Income Child Benefit Charge | Starts over £60,000; all repaid over £80,000 | Starts over £60,000; all repaid over £80,000 (no change) | High Income Child Benefit Charge | High Income Child Benefit Charge |
| Marriage Allowance | £1,260 | £1,260 (no change) | Budget 2025 rates annex | Marriage Allowance |
| Blind Person’s Allowance | £3,130 | £3,250 | Blind Person’s Allowance | Blind Person’s Allowance |
| Mileage rate, cars and vans | 45p for the first 10,000 miles, then 25p | 55p, then 25p | Mileage and fuel rates | Mileage and fuel rates |
Figures in bold changed on 6 April 2026.
What changed for employees in 2026/27?
Income Tax and employee National Insurance rates did not change. Two things did. The approved mileage rate for using your own car or van for work rose from 45p to 55p for the first 10,000 business miles. And from 2026/27, employees cannot claim tax relief for working from home.
The mileage increase was announced on 21 May 2026 and took effect from 6 April 2026. After 10,000 miles the rate is still 25p. Employers can choose to pay more or less than the approved rate. If an employee is paid less, they can claim Mileage Allowance Relief on the difference. If an employee is paid more, the extra is taxed.
Illustration only. For 10,000 business miles in a car, the approved amount is £5,500 at 55p. At 45p it was £4,500.
GOV.UK says claims for working from home can still be made for the 4 previous tax years.
The lower earnings limit rose from £125 to £129 a week. Employees start paying National Insurance at £242 a week, as before.
Income Tax bands are different if you live in Scotland.
What changed for the self-employed?
Class 4 National Insurance is unchanged at 6% on profits over £12,570 up to £50,270, and 2% above. The Class 2 small profits threshold rose from £6,845 to £7,105, and the voluntary rate from £3.50 to £3.65 a week. The flat mileage rate rose to 55p. Making Tax Digital for Income Tax began.
Three more points:
- Making Tax Digital. Sole traders and landlords with qualifying income over £50,000 in 2024/25 should have started using it from 6 April 2026, unless they are exempt.
- Mileage. The simplified expenses rate for cars and goods vehicles is 55p a mile for the first 10,000 miles, then 25p. Before 6 April 2026 the first rate was 45p.
- Equipment. The main rate of writing down allowance changed from 18% to 14% on 6 April 2026 for Income Tax. A hybrid rate applies to an accounting period that spans the change.
See our sole trader accountant service and our landlord accounts service.
What changed for directors and shareholders?
Dividend tax went up. The basic rate rose from 8.75% to 10.75% and the higher rate from 33.75% to 35.75%. The additional rate stayed at 39.35%. The dividend allowance is still £500. GOV.UK says the dividend rates apply across the UK.
Illustration only. On £10,000 of dividends above the allowance, all in the basic rate band, the tax is £1,075 at 10.75%. At 8.75% it was £875. A real bill depends on all of your income.
The rate under Business Asset Disposal Relief is 18% on qualifying assets disposed of from 6 April 2026. It was 14% for disposals between 6 April 2025 and 5 April 2026. The relief has conditions, so it is one to talk through with an accountant.
See our limited company accountants service.
What changed for savers and investors?
Apart from the dividend rates, very little in 2026/27. The ISA allowance is still £20,000 and the pension annual allowance is still £60,000. The personal savings allowance is £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. The Capital Gains Tax allowance is £3,000 and the rates are 18% and 24%, as in 2025/26.
The starting rate for savings can make up to £5,000 of interest tax-free. It is reduced by £1 for every £1 of other income above your Personal Allowance. The pension annual allowance can be lower for people on high incomes or who have flexibly accessed a pension.
Coming next. Two GOV.UK papers describe changes from April 2027:
- A GOV.UK policy paper published on 27 November 2025 says the tax rates for savings income will be 22%, 42% and 47% for the 2027/28 tax year.
- A GOV.UK paper published on 17 September 2026 says the ISA rules will be amended so that the cash ISA limit is £12,000 for people aged under 65 from 6 April 2027. It says the overall ISA limit stays at £20,000. People aged 65 or over keep a £20,000 cash ISA limit.
Which year’s figures go on the tax return due in January?
The 2025/26 figures. The online tax return due by 31 January 2027 covers the tax year from 6 April 2025 to 5 April 2026. So it uses the 2025/26 dividend rates of 8.75%, 33.75% and 39.35%, and the 45p mileage rate. The 2026/27 figures apply to the year that began on 6 April 2026.
The tax owed for 2025/26 is also due by 31 January 2027. See our Self Assessment help.
What do people ask us about personal tax in 2026/27?
Did Income Tax rates change in April 2026?
No. In England, Wales and Northern Ireland the rates are 20%, 40% and 45% in both 2025/26 and 2026/27, and the Personal Allowance is £12,570 in both. Income Tax bands are different if you live in Scotland.
Did dividend tax go up in 2026/27?
Yes, at two of the three rates. The basic rate is 10.75%, up from 8.75%. The higher rate is 35.75%, up from 33.75%. The additional rate is still 39.35% and the dividend allowance is still £500.
What is the mileage rate for 2026/27?
55p a mile for the first 10,000 business miles in a car or van, then 25p. Before 6 April 2026 the first rate was 45p. Motorcycles are 24p a mile and bicycles 20p.
Can employees still claim tax relief for working from home?
Not for 2026/27. GOV.UK says that from the tax year 6 April 2026 to 5 April 2027 you will not be able to claim tax relief for working from home. Claims can still be made for the 4 previous tax years.
Is the ISA allowance still £20,000?
Yes. In the 2026/27 tax year the most you can save in ISAs is £20,000, the same as in 2025/26. A GOV.UK paper says the ISA rules will be amended so that the cash ISA limit is £12,000 for people aged under 65 from 6 April 2027.
Has the High Income Child Benefit Charge threshold changed?
No. The charge applies when an individual’s adjusted net income is over £60,000. You pay back 1% of your Child Benefit for every £200 of income over £60,000, and all of it if your adjusted net income is over £80,000.
Can Wainwrights look at my own figures?
Yes. An article can only explain the general rules. Book a free call and an accountant will go through your own figures with you. Our personal tax return service is from £20 a month + VAT (£24 including VAT). The price is indicative and our team confirms it. See our pricing page.
Rates and thresholds change from one tax year to the next, and how they apply depends on your own figures. To talk yours through with an accountant in Bromborough, get a quote or book a free call.