Tax Rates and Thresholds 25-26

What are the current tax rates and thresholds for 2025–2026?

Government tax rates and thresholds are announced in the Autumn Statement or the Budget. Any changes must be reflected in the management of your employee’s pay, this includes tax, employee and employer National Insurance and pension contributions (wherever changes are introduced). Amendments announced by the government usually take effect at the beginning of the tax year.

Therefore, each tax year, we publish the tax and national insurance contribution rates and thresholds, National Minimum Wage/National Living Wage rates, and minimum pension contributions as set out by HMRC. We have also included the Statutory Sickness and Maternity pay rates for your reference.

At Stafftax, our certified payrollers are highly experienced in ensuring that you remain compliant with all HMRC requirements. We use these figures to calculate your employee payslips and work out your tax liability as an employer.

The current Government tax rates and thresholds for the 2025–2026 tax year came into effect on 6 April 2025.

Please see the tables below for the latest Income Tax and National Insurance rates and thresholds for 2025–26.

Tax brackets	Gross per week	Description
Lower Earnings Limit	£123 gross per week or less	If you pay your employee the LEL or below, there is nothing due to HMRC in respect of Employee NI. This means the employee will not be contributing towards their NI record, which can affect their eligibility to a state pension or benefits
Employer’s (Secondary) NI Threshold	£96 gross per week or more	If you pay your employee £96 or more then Employer NI will be due.
Employee’s (Primary) NI Threshold	£242 gross per week or more	If you pay your employee £242 or more you must now deduct National Insurance on behalf of your employee, as well as pay Employer’s NI.
Tax Threshold	Over £242 gross per week	Based on the standard tax free allowance for this year of £12,570, if you pay your employee £242 or more you must now also deduct tax from your employee.

Please note, the tax rates and thresholds differ slightly if you are based outside of England. For the current Government rates for Scotland and Wales, please click here.

Tax and National Insurance Payments

If your Tax and NI bill is below £1,500 per month you will have to pay the Tax and NI to HMRC on a quarterly basis. Be aware that late payments can result in hefty fines and interest being applied.

If your monthly liability bill exceeds £1,500 per month, you must pay HMRC every month.

Payment Deadlines	Financial Quarter	Months Covered
19th July	1	Apr, May, Jun
19th October	2	Jul, Aug, Sep
19th January	3	Oct, Nov, Dec
19th April	4	Jan, Feb, Mar

National Minimum Wage

The National Minimum Wage changes every October, the National Living Wage changes every April.

Age	Hourly Rate
Aged 21 and above (national living wage rate)	£12.21
Aged 18 to 20 inclusive	£10.00
Aged under 18 (but above compulsory school leaving age)	£7.55
Apprentices aged under 19	£7.55
Apprentices aged 19 and over but in the first year of their apprenticeship	£7.55

Pension Contribution

Below is a table that illustrates the minimum percentage of the employee’s pay that an employer, an employee and the government will have to contribute towards pensions this financial year.

Dates	Employer	Employee	Government	Total
6th April 2024 – 5th April 2025	3%	4%	1%	8%

Statutory Maternity Pay (SMP)

The first 6 weeks of SMP are paid at 90% of average gross weekly earnings. The remaining weeks of the maternity pay period (up to a maximum of 33 weeks) are paid at the current SMP rate of £187.18 gross per week, or 90% of the employee’s weekly earnings, whichever is lower.

Statutory Sick Pay (SSP)

The 2025-2026 rate of SSP is £118.75 gross per week. The first 3 consecutive days of illness are unpaid as SSP starts on the fourth consecutive day of illness and can be paid for up to 28 weeks.

Domestic Employment Contract

All UK employees, including domestic and household staff, are entitled to receive a contract of employment, by their first day. But what should be included?

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Workplace Pensions

All UK employers must offer their employee a workplace pension scheme if they meet the criteria. You can read more about the auto enrolment criteria on our pensions page.

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Employment Costs

Whether employing for the first time, or taking on a new member of staff, it is vital to have an understanding of your employment costs, from the outset.

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