Opening soon. Farside Accounting Ltd's registration with HMRC for anti-money-laundering supervision is in progress. We are happy to talk now, and will take on client work once that registration is confirmed.
Rates & thresholds
The 2026/27 tax year and financial year 2026, in one place. England, Wales and Northern Ireland. Published as general information, not advice.
Corporation tax
Financial year 2026, beginning 1 April 2026.
| Band | Taxable profit | Rate |
|---|---|---|
| Small profits rate | Up to £50,000 | 19% |
| Marginal relief bandMarginal relief fraction 3/200 | £50,001 – £250,000 | 26.5% |
| Main rate | Over £250,000 | 25% |
| Payment deadlineCompanies outside the quarterly instalment regime | 9 months and 1 day after the period end | — |
The 26.5% figure is the marginal rate — the tax on the next pound of profit inside the band — not the average rate paid. A company with £150,000 of profit pays £36,000, an effective 24.0%. One associated company halves the thresholds to £25,000 and £125,000.
Income tax
England, Wales and Northern Ireland. Scotland sets its own rates and bands on non-savings, non-dividend income.
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowanceFrozen until April 2031 | 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% |
| Allowance taper£1 of allowance lost for every £2 of income over £100,000 | £100,000 – £125,140 | 60% |
The 60% row is not a statutory rate. It is the effective rate on income between £100,000 and £125,140, where each extra £2 earned also removes £1 of personal allowance. Both the allowance and the higher-rate threshold are now frozen to April 2031.
Dividends, savings and capital gains
Dividend rates rose by two percentage points on 6 April 2026.
| Dividend income | 2025/26 | 2026/27 | Change |
|---|---|---|---|
| Dividend allowance | £500 | £500 | — |
| Ordinary rateWithin the basic rate band | 8.75% | 10.75% | +2.00 |
| Upper rateWithin the higher rate band | 33.75% | 35.75% | +2.00 |
| Additional rate | 39.35% | 39.35% | — |
| Savings and capital gains | 2026/27 |
|---|---|
| Personal savings allowance — basic rate taxpayer | £1,000 |
| Personal savings allowance — higher rate taxpayer | £500 |
| Personal savings allowance — additional rate taxpayer | £0 |
| Capital gains annual exempt amount | £3,000 |
| CGT rate — gains within the basic rate band | 18% |
| CGT rate — gains above the basic rate band | 24% |
Coming 6 April 2027: savings income rates rise by two percentage points to 22%, 42% and 47%, and property income gets its own separate rates at the same 22%, 42% and 47%. Neither applies in 2026/27, but both change the arithmetic for landlords and for anyone holding cash outside an ISA, so they are worth modelling a year early.
National Insurance
Employer, employee and self-employed contributions.
| Class | Applies to | Threshold | Rate |
|---|---|---|---|
| Class 1 secondaryEmployer | Earnings above the secondary threshold | £5,000 a year | 15% |
| Class 1 primaryEmployee | Between the primary threshold and upper earnings limit | £12,570 – £50,270 | 8% |
| Class 1 primaryEmployee | Earnings above the upper earnings limit | Over £50,270 | 2% |
| Class 4Self-employed | Profits between the lower and upper profits limits | £12,570 – £50,270 | 6% |
| Class 4Self-employed | Profits above the upper profits limit | Over £50,270 | 2% |
| Employment AllowanceReduces the employer Class 1 bill | Eligible employers | Per year, per business | £10,500 |
The secondary threshold of £5,000 means employer NIC now starts well below the point at which the employee pays anything. On a £30,000 salary the employer contribution is £3,750 before the Employment Allowance is applied.
National Minimum and Living Wage
Hourly rates from 1 April 2026.
| Category | From 1 Apr 2025 | From 1 Apr 2026 | Increase |
|---|---|---|---|
| National Living Wage21 and over | £12.21 | £12.71 | +4.1% |
| 18 to 20 | £10.00 | £10.85 | +8.5% |
| 16 to 17 and apprentices | £7.55 | £8.00 | +6.0% |
The 1 April change date catches out monthly payrolls with a pay period straddling it: hours worked before and after 1 April are paid at different minimum rates within the same run.
VAT
Rates, thresholds and the standard filing cycle.
| Item | Detail | 2026/27 |
|---|---|---|
| Standard rate | Most goods and services | 20% |
| Reduced rate | Domestic fuel, children's car seats and others | 5% |
| Zero rate | Most food, books, children's clothing | 0% |
| Registration threshold | Taxable turnover, rolling 12 months | £90,000 |
| Deregistration threshold | Expected taxable turnover for the next 12 months | £88,000 |
| Filing and payment | Standard quarterly return under MTD | 1 month + 7 days |
Registration is triggered the moment taxable turnover over any rolling 12-month period exceeds £90,000 — not at the year end. A business that crosses in the middle of a month has 30 days from the end of that month to notify HMRC.
Making Tax Digital for Income Tax
The phased mandation timetable, by qualifying income.
| Mandated from | Qualifying income above | Tested against the tax year | Status |
|---|---|---|---|
| 6 April 2026 | £50,000 | 2024/25 | In force |
| 6 April 2027 | £30,000 | 2025/26 | Announced |
| 6 April 2028 | £20,000 | 2026/27 | Announced |
Qualifying income is measured gross, before expenses, and self-employment and property income are added together. A landlord with £28,000 of rent and £24,000 of trading income is inside the April 2026 population despite neither source reaching £50,000 alone.
Need this applied rather than looked up?
A rate card tells you the number. Getting the return right is the work — that is the part we do.