HMRC confirm most of the 2026/2027 values for software

Budget, Class 1a, Employment Allowance, Employment allowance, Freeports, HMRC, Investment Zones, National Insurance, National Minimum and Living Wage, Payroll, Payroll Change 2026, Payroll Change April 2026, Sick Pay, Software Developers, Statutory Maternity Pay, Statutory Neonatal Care Pay (SNCP), Statutory Parental Bereavement Pay, Statutory Paternity Pay, Statutory Payments, Students, Tax Codes, Taxation, Veterans 2 Minutes

Payroll 2026-27: Allowances, Rates and Thresholds from April 2026

 Dear PAYadvice.UK

Following the Autumn Budget of 26 Ltd November 2025, we can confirm the following information for payroll 2026-27.

Where details are not currently known, these are marked as TBA.  We will provide a further update as soon as we can.

We will also provide test example data for National Insurance, Student Loans and Income Tax in due course.

2026-2027

Personal Allowance:

£12,570
Confirmed

PAYE Thresholds:

Weekly: £242
Confirmed

Monthly: £1,048
Confirmed

Standard / Emergency tax code:

1257L
Confirmed

Tax Code uplifts:

  • L:  N/A due to no change in the Personal Allowance Confirmed
  • M:  N/A due to no change in the Personal Allowance Confirmed
  • N: N/A due to no change in the Personal Allowance Confirmed

Income Tax rates and thresholds – England & Northern Ireland

Basic rate                  (BR)    20%    1 – 37,700

Higher rate                (D0)    40%    37,701 – 125,140

Additional rate          (D1)    45%    125,141 >
Confirmed

Income Tax rates and thresholds – Scotland

Starter rate                            xx%    1 – x,xxx
Basic rate                  (SBR) xx%    x,xxx – xx,xxx
Intermediate rate      (SD0)  xx%    xx,xxx – xx,xxx
Higher rate                (SD1)  xx%    xx,xxx – xx,xxx
Advanced rate          (SD2)  xx%    xx,xxx – xxx,xxx
Top rate                     (SD3)  xx%    xxx,xxx >
TBA

Income Tax rates and thresholds – Wales

Basic rate                  (CBR) 20%    1 – 37,700

Higher rate                (CD0) 40%    37,701 – 125,140

Additional rate          (CD1) 45%    125,141 >

Income Tax rates and thresholds are subject to parliamentary approval

Class 1 National Insurance contributions (NICs) rates and thresholds:

Class-1-NICs-Rates-and-Earnings-Limits-2026-2027-v1.0.pdfDownload

Confirmed

Class 1A NICs rate:
15.0%
Confirmed

Class 1B NICs rate:
15.0%
Confirmed

National Living Wage & National Minimum Wage rates:

NLW_NMW-2026-2027-v1.0.pdfDownload

Confirmed

Student Loan & Postgraduate Loan thresholds and deduction rates:

SL_PGL-2026-2027-v1.0.pdfDownload

Statutory Payment rates:

SP_SSP-2026-2027-v1.1.pdfDownload

Employment Allowance:

£10,500
Confirmed

Apprenticeship Levy:

£15,000
0.5%
Confirmed

Car and van fuel benefit charges: 

 The following new rates will come into effect from 6 April 2026:

  •  the van benefit charge will be £4,170 in tax year 2026 to 2027
  • the van fuel benefit charge will be £798 in tax year 2026 to 2027
  • the car fuel benefit charge multiplier will be £29,200 in tax year 2026 to 2027.

Kind Regards,

HM Revenue & Customs
Software Developer Support Team

PAYadvice.UK 4/12/2026 updated 5/12/2025

Published by psimonparsons

Published

Leave a Reply