Government Rates & Thresholds 25-26
The current Government rates for the tax year 2025 – 2026 come into effect as of the 6th of April 2025. Please see the tables below for the latest Tax and National Insurance Rates & Thresholds 25-26.
| Tax brackets | Gross per week | Description |
| Lower Earnings Limit | £123 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) | £12.21 |
| Aged 18 to 20 inclusive | £10.00 |
| Aged under 18 (but above compulsory school leaving age) | £7.55 |
| Apprentices aged under 19 | £7.55 |
| Apprentices aged 19 and over but in the first year of their apprenticeship | £7.55 |
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 2025 – 5th April 2026 | 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 £187.18 gross per week, or 90% of the employee’s weekly earnings, whichever is lower.
Statutory Sick Pay (SSP)
The 2025-26 rate of SSP is £118.75 gross per week. The first 3 consecutive days of illness are unpaid as SSP starts on the fourth consecutive day of illness and can be paid for up to 28 weeks.
You might also be interested in
Tax & National Insurance
If you are employed you must pay Tax and National Insurance (NI) on your earnings, however, legally it falls to the employer to ensure these deductions are made.
Gross vs Net
If you agree a Net salary you may be in for a shock further down the line when faced with how much employing your nanny is really going to cost. That’s why we advocate the #GOGROSS campaign.
Tax-Free Childcare
Tallying up your childcare costs and worried about the expense? You’re not alone. Find out how nanny employers can benefit from childcare support schemes such as Tax-Free Childcare.