Be Ready for the 2026/27 Tax Year in 2 Minutes

Nannytax | Be Ready for the New Tax Year in 2 Minutes

March 23, 2026

Be Ready for the 2026/27 Tax Year in 2 Minutes

From April 2026, key tax rates for nanny employers remain the same, including National Insurance and the frozen £12,570 personal allowance. However, National Minimum Wage will rise to £12.71, and Statutory Sick Pay will be paid from day one, with all employees qualifying regardless of earnings. SSP will be £123.25 per week or 80% of average weekly earnings (whichever is lower), and the accommodation offset will also increase.

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Nannytax | Be Ready for the 2026/27 Tax Year in 2 Minutes

The 2026/27 tax year is fast approaching. To help you prepare, here are the key tax year changes you need to know about as a nanny employer from April 2026.

1. National Insurance Thresholds

The employer National Insurance rate (15%) and the Secondary Threshold (£5,000 per year) will remain unchanged. Your employee’s National Insurance rate will also stay at 8%.

2. Personal Tax Allowance Frozen

The personal tax allowance threshold for 2026/27 has been frozen at the limit of £12,570.

This means you will only pay income tax on any earnings which are above the £12,570 threshold, as long as your nanny is on the standard 1257L tax code.

3. Increase to National Minimum Wage

National Minimum Wage will increase from £12.21 to £12.71.

As a nanny employer, you have a legal obligation to be compliant with this change.

Do I need to pay my nanny national minimum wage? Yes, you are legally required to pay your nanny at least that National Minimum Wage / National Living Wage. Click here to find out more.

4. Changes to Statutory Sick Pay (SSP)

From April 2026, Statutory Sick Pay (SSP) will be paid from the first day of illness, instead of the fourth day.

Currently, employers don’t have to pay SSP for the first three days of sickness absence (these are called “waiting days”). So if your employee is sick for 2 or 3 days, they won’t currently receive any SSP.
From April 2026, that three-day waiting period is removed. This means that employees will start receiving sick pay on day one of their absence.

The Lower Earnings Limit (LEL) will also be removed, so minimum earnings requirements for statutory payments will no longer apply.

For example, in the current tax year to qualify SSP, an employee must earn at least £125 gross per week. If an employee earns £100 gross per week, they are not entitled to SSP.
From April 2026, the Lower Earnings Limit will be removed. This means all employees, even those earning under £125 gross per week, will be entitled to Statutory Sick Pay (SSP).

The weekly rate of statutory Sick Pay (SSP) will be £123.25 or 80% of the employee’s average weekly earnings, whichever is lower.

5. Accommodation Offset Allowance Increase

If your nanny is living with you and you are operating the accommodation allowance, in line with National Minimum wage, the below rates will increase from April 2026: