Personal allowances, tax bands and employee national insurance

The personal allowance will remain the same at £12,570 per annum and the standard tax code will be 1257L. The Emergency code will be 1257L week1/month1.

Please find below the English Income Tax bands of taxable income per year:

Tax codes can change due to the individual’s circumstances as they may have tax relievable expenditure to claim or they may receive benefits in kind such as company cars, gym memberships, medical insurance etc. If they earn over £100,000, then the personal allowance is gradually withdrawn.

Please find below the Scottish Income Tax bands of taxable income per year:

Employee national insurance rates from 6^th April 2026 will be

• 0% on earnings up to £12,570
• 8% paid on earnings between £12,570 and £50,270 per year.
• 2% paid on any earnings over £50,270

Employer national insurance rates from 6^th April 2026 will be

• 0% on earnings up to £5,000
• 15% paid on any earnings over £5,000

Qualifying employers may be able to claim the Employment Allowance of up to £10,500 to reduce their employers national insurance liability. We will require a declaration of eligibility to enable us to claim this on your behalf. This will be issued via a separate email in the next few weeks.

National Insurance Holiday for Employers of Veterans

This has now been extended for 2 more years  from 6 April 2026 to 5 April 2028.

Please let us know if you employ a veteran as the legislation gives national insurance relief in the first year of their civilian employment.

Please see the link for further information.

This will continue to be claimed through Real Time Information submissions. Any earnings of qualifying veterans hired from 6 April 2021 will be eligible for retrospective National Insurance contributions relief.