Thresholds frozen to 2031, NLW rises to 12.71/hr, employer NI at 15%, dividend rates increase. Complete guide.
| Threshold | 2026-27 Amount | Frozen Until |
|---|---|---|
| Personal Allowance | 12,570 | April 2031 |
| Basic Rate limit | 50,270 | April 2031 |
| Higher Rate limit | 125,140 | April 2031 |
| Scottish Band | 2025-26 | 2026-27 |
|---|---|---|
| Starter Rate ends | 15,397 | 16,537 |
| Basic Rate ends | 27,491 | 29,526 |
| Intermediate and above | unchanged | unchanged |
| Category | 2025-26 | 2026-27 |
|---|---|---|
| NLW (aged 21 and over) | 11.44/hr | 12.71/hr |
| Aged 18 to 20 | 8.60/hr | 10.00/hr |
| Under 18 and Apprentices | 6.40/hr | 7.55/hr |
| Band | 2025-26 | 2026-27 |
|---|---|---|
| Basic rate | 8.75% | 10.75% |
| Higher rate | 33.75% | 35.75% |
| Additional rate | 39.35% | 39.35% |
The increase in basic rate dividend tax from 8.75% to 10.75% makes Limited Company contractor structures slightly less efficient than before. The dividend allowance remains at 500 per year. Use the IR35 calculator to see your updated 2026-27 outside IR35 take-home.
When do UK thresholds unfreeze?
The freeze runs to April 2031. No earlier unfreeze has been confirmed by the government.
Did Scotland change all its tax rates?
No. Only the Starter and Basic thresholds rose by 7.4%. All rates and higher band thresholds were unchanged for 2026-27.
Free, accurate, 2026-27 rates. Scotland and tax code supported.