Government Rates & Thresholds 26-27
The current Government rates for the tax year 2026 – 2027 come into effect as of the 6th of April 2026. Please see the tables below for the latest Tax and National Insurance Rates & Thresholds 26-27.
| Tax brackets | Gross per week | Description |
| Lower Earnings Limit | £129 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 thresholds differ slightly if you are based outside of England. For the current Government rates for Scotland and Wales, please click here.
Tax and NI 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 (NMW)
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) | £12.71 |
| Aged 18 to 20 inclusive | £10.85 |
| Aged under 18 (but above compulsory school leaving age) | £8 |
| Apprentices aged under 19 | £8 |
| Apprentices aged 19 and over but in the first year of their apprenticeship | £8 |
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 2026 – 5th April 2027 | 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 £194.32 gross per week, or 90% of the employee’s weekly earnings, whichever is lower.
Statutory Sick Pay (SSP)
The weekly rate of Statutory Sick Pay (SSP) for 2026 to 2027 is £123.25 or 80% of the employee’s average weekly earnings, whichever is lower.
The amount of SSP you must pay an employee for each day they’re off work from the first day of illness (the daily rate) depends on the:
- employee’s average weekly earnings
- number of ‘qualifying days’ they work each week
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