UK Income Tax and National Insurance 2026-27

The UK tax year runs 6 April to 5 April. Most employees pay through PAYE and never file a return.

Income Tax 2026-27 (England, Wales, Northern Ireland)

Band	Income	Rate
Personal Allowance	up to £12,570	0%
Basic rate	£12,571 – £50,270	20%
Higher rate	£50,271 – £125,140	40%
Additional rate	over £125,140	45%

The Personal Allowance falls by £1 for every £2 of income over £100,000, and is nil at £125,140.

Scotland 2026-27

Starter 19% (£12,571–£16,537), basic 20% (to £29,526), intermediate 21% (to £43,662), higher 42% (to £75,000), advanced 45% (to £125,140), top 48% above.

National Insurance 2026-27

• Employees (Class 1): 8% on weekly earnings between £242 and £967, then 2% above.
• Employers: 15% on earnings above £96 a week.
• Self-employed (Class 4): 6% on profits between £12,570 and £50,270, then 2% above. Class 2 is treated as paid if profits are at least £7,105.

Who must file a Self Assessment return

Sole traders earning over £1,000, business partners, people with Capital Gains Tax to pay, and some people with untaxed income such as rent or foreign income.

Deadlines for the 2025-26 tax year

• Register if new: 5 October 2026
• Paper return: 31 October 2026
• Online return and payment: 31 January 2027
• Second payment on account: 31 July 2027

2026-27 dates follow the same pattern. Needs review until HMRC publishes them.

Making Tax Digital for Income Tax

Sole traders and landlords must keep digital records and send quarterly updates if their qualifying income is over £50,000 (from 6 April 2026), £30,000 (from April 2027) or £20,000 (from April 2028).

VAT

20% standard, 5% reduced, 0% zero rate.

Moving from India

If you move from India to the UK, both countries’ rules can apply in the year you move.

• Check your Indian status for that year in Residential status. It decides whether India taxes only your Indian income or your worldwide income.
• Savings accounts usually need to change to NRO/NRE accounts. See NRI bank accounts.
• Money you send abroad before you leave falls under the Liberalised Remittance Scheme. See Foreign remittance (LRS).
• If both countries tax the same income, India’s tax treaty with the UK may give relief. Read the treaty text before you rely on it.