Tax Year 2026/27: Key Dates, Personal Allowance and UK Tax Bands

When Is the 2026/27 Tax Year?

The UK tax year 2026/27 runs from 6 April 2026 to 5 April 2027. The Personal Allowance is £12,570, and outside Scotland income tax is charged at 20% up to £50,270, 40% up to £125,140 and 45% above that. These thresholds are frozen, so they are the same as in recent years.

This guide brings the key dates, allowances and rates for 2026/27 together in one place. It covers England, Wales and Northern Ireland; Scotland sets its own income tax bands for earnings and savings interest is handled differently, so Scottish taxpayers should check the Scottish rates separately.

Key Tax Dates for 2026/27

For the full Self Assessment calendar, see our Self Assessment deadline guide.

Personal Allowance 2026/27

The Personal Allowance — the amount of income you can receive tax-free each year — is £12,570 for 2026/27. It is reflected in the standard tax code 1257L.

• Taper above £100,000: the allowance is reduced by £1 for every £2 of adjusted net income over £100,000, so it is lost entirely at £125,140. This creates an effective 60% tax rate on income in that band. Pension contributions and Gift Aid can reduce adjusted net income and restore the allowance.
• Marriage Allowance: a non-taxpayer can transfer £1,260 of their allowance to a basic-rate taxpayer spouse or civil partner, saving the couple up to £252 a year.
• Frozen thresholds: the Personal Allowance and higher-rate threshold have been frozen for several years and the government has extended the freeze further. As wages rise, more of your income falls into higher bands — so-called fiscal drag.

UK Income Tax Bands 2026/27 (England, Wales and Northern Ireland)

Welsh taxpayers currently pay the same rates as England. Scottish taxpayers pay Scottish rates on earnings, pensions and rental income, with more bands and different thresholds — use Scottish Government figures for those.

To see what these bands mean for your take-home pay, use our income tax calculator. If you are self-employed, our self-employment tax calculator includes Class 4 National Insurance.

National Insurance 2026/27

• Employees (Class 1): 8% on earnings between £12,570 and £50,270 a year, and 2% above.
• Employers: 15% on employee earnings above £5,000 a year. The Employment Allowance of £10,500 reduces the bill for eligible employers, but companies whose only employee is a director are not eligible.
• Self-employed (Class 4): 6% on profits between £12,570 and £50,270, and 2% above. Class 2 contributions are no longer compulsory, but can be paid voluntarily to protect your State Pension record if your profits are low.

Dividend Tax 2026/27

The dividend allowance is £500. Dividends above the allowance are taxed at rates that increased from 6 April 2026:

The rise in the basic and higher dividend rates makes the salary-versus-dividend decision for company directors slightly less favourable than before, though dividends still usually win because they are not subject to National Insurance. Model your own figures with our dividend vs salary calculator.

Savings, ISAs and Capital Gains

• Personal Savings Allowance: £1,000 of interest tax-free for basic-rate taxpayers, £500 for higher-rate, and nothing for additional-rate taxpayers.
• Starting rate for savings: up to £5,000 of interest can be taxed at 0% if your other income is below £17,570.
• ISA allowance: £20,000 for 2026/27. Changes to the cash ISA limit have been announced for later years, so check before planning beyond April 2027.
• Capital Gains Tax: the annual exempt amount is £3,000. Gains above that are taxed at 18% within the basic-rate band and 24% above it, for both residential property and other assets. Business Asset Disposal Relief now gives a rate of 18%.
• Pension annual allowance: generally £60,000, tapered for very high earners.

Tax Planning Checklist Before 5 April 2027

Many allowances are "use it or lose it" — if you do not use them by 5 April 2027, they are gone for good. Before the year ends, check the following:

• ISA allowance: have you used as much of your £20,000 as you can afford?
• Pension contributions: contributions attract tax relief at your marginal rate and can bring income back below £100,000 (restoring your Personal Allowance) or £60,000 (reducing the High Income Child Benefit Charge). You may be able to use unused annual allowance from the previous three years.
• Capital gains: the £3,000 exempt amount cannot be carried forward. Spouses and civil partners each have their own, and transfers between them are generally tax-free.
• Dividends for directors: the timing of dividend declarations determines which tax year they fall into. If your income will be lower next year, or you are close to the higher-rate threshold, timing matters.
• Marriage Allowance: if one partner earns less than £12,570, check whether you are claiming it. It can be backdated for up to four years.
• Gift Aid: higher-rate taxpayers can claim extra relief on donations through Self Assessment.
• Business expenses and capital purchases: if you are self-employed or run a company, the timing of equipment purchases can affect which year you get relief in.

Most of these decisions need to be made before the year ends, not when you file your return the following January. That is why we review clients' positions in the first quarter of each calendar year.

Which Tax Year Does Income Fall Into?

Employment income is taxed in the tax year you are paid, not when you earned it, so a bonus paid on 7 April 2027 falls into 2027/28. Dividends are taxed when they are paid or, for some interim dividends, when they are due. Self-employed profits are now taxed on a tax-year basis, so if your accounting year does not end on 5 April (or 31 March, which HMRC treats as equivalent), you will need to apportion profits across two accounting periods. Getting the tax year right matters when you are close to a threshold.

Frequently Asked Questions

When does the 2026/27 tax year end?

On 5 April 2027. The 2027/28 tax year starts on 6 April 2027.

What is the tax-free allowance for 2026/27?

The Personal Allowance is £12,570. You may also have a £500 dividend allowance, a Personal Savings Allowance of up to £1,000, a £1,000 trading allowance, a £1,000 property allowance and a £3,000 CGT exempt amount.

What is the 40% tax threshold for 2026/27?

Higher-rate tax starts at £50,271 of total income (£37,700 of taxable income above the Personal Allowance) outside Scotland.

Why do the tax bands never seem to change?

The thresholds have been frozen as a way of raising revenue without increasing headline rates. As earnings rise, more people pay higher-rate tax.

Plan Ahead for 2026/27

With thresholds frozen and dividend rates up, planning matters more each year — especially if you are near £50,270, between £100,000 and £125,140, or taking income from a company. Our tax planning team reviews your position before the year ends, so there is still time to act. Book a free consultation.