2026/27 · checked 13 August 2026
UK statutory rates 2026/27
The figures the UK runs on, in one place, each one linked to the gov.uk page it came from and dated so you can see how fresh it is.
Why this page exists
Rates pages go stale, and stale rates cost people money. That is not a hypothetical: on 17 July 2026 gov.uk contradicted itself. Its employer-facing maternity pages still showed the 2025/26 figures of £187.18 a week and a £125 lower earnings limit, while its own rates guidance had the current £194.32 and £129.
So every figure here carries the page it came from and the date it was last checked. If a number below disagrees with something you have been sent, check the date on the other one first.
Income tax
England, Wales and Northern Ireland. Scotland sets its own income tax rates and bands, which differ from these.
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Source: gov.uk income tax rates, checked 13 August 2026.
The Personal Allowance drops by £1 for every £2 of income above £100,000, so it is gone entirely at £125,140. Dividends count towards that total, which the dividend tax calculator accounts for.
National Minimum and Living Wage
From 1 April 2026. These change every April, not with the tax year.
| Age | Hourly rate |
|---|---|
| 21 and over (National Living Wage) | £12.71 |
| 18 to 20 | £10.85 |
| Under 18 | £8.00 |
| Apprentice | £8.00 |
Source: gov.uk minimum wage rates, checked 13 August 2026.
The apprentice rate applies if you are under 19, or 19 and over and in the first year of your apprenticeship. After that first year you move to the rate for your age.
Statutory pay
2026/27. Note the odd split: SMP applies from 5 April 2026, everything else from 6 April.
| Payment | Rate | Length |
|---|---|---|
| Maternity (SMP) | 90% of average weekly earnings for 6 weeks, then £194.32 or 90%, whichever is lower | 39 weeks |
| Paternity (SPP) | £194.32 or 90% of average weekly earnings, whichever is lower | 1 or 2 weeks |
| Adoption (SAP) | 90% for 6 weeks, then £194.32 or 90%, whichever is lower | 39 weeks |
| Sick pay (SSP) | £123.25 or 80% of average weekly earnings, whichever is lower | 28 weeks |
| Lower Earnings Limit | £129 a week (£559 a month, £6,708 a year) | — |
Source: gov.uk rates and thresholds for employers, checked 13 August 2026.
SSP changed substantially on 6 April 2026 under the Employment Rights Act 2025. Waiting days were abolished, so it is paid from the first day rather than the fourth. The lower earnings limit for SSP was removed, so everyone qualifies whatever they earn. And the 80% rule is new: it used to be a flat rate. Most SSP guidance written before April is wrong on all three. The sick pay calculator uses the current rules, and the maternity pay calculator maps SMP across all 52 weeks of leave.
VAT
The standard rate has been 20% since 4 January 2011.
| Item | Figure |
|---|---|
| Standard rate | 20% |
| Reduced rate | 5% (home energy, children's car seats) |
| Zero rate | 0% (most food, children's clothes, books) |
| Registration threshold | £90,000 rolling 12 months |
| Deregistration threshold | £88,000 |
| Flat Rate Scheme, join below | £150,000 excluding VAT |
| Flat Rate limited cost business | 16.5% of gross takings |
| Flat Rate first-year discount | 1% off your rate |
Source: gov.uk VAT rates, checked 13 August 2026.
The £2,000 gap between registering at £90,000 and deregistering at £88,000 is deliberate: without it, a business hovering on the line would join and leave every few months. Work either direction with the VAT calculator, and remember that removing VAT is a division by 1.2, not 20% off.
Dividend tax
2026/27. The basic and higher rates both rose two points on 6 April 2026.
| Band | Rate | Was |
|---|---|---|
| Dividend allowance | £500 at 0% | £500 |
| Basic rate | 10.75% | 8.75% |
| Higher rate | 35.75% | 33.75% |
| Additional rate | 39.35% | 39.35% |
Source: gov.uk tax on dividends, checked 13 August 2026.
Dividends sit on top of your other income, so the band they fall in depends on your salary as well as the dividend. The dividend tax calculator stacks them properly and applies the £100,000 allowance taper.
Mileage allowances
Approved rates for using your own vehicle on business. Cars rose from 45p on 6 April 2026, after fourteen years unchanged. The others did not move.
| Vehicle | First 10,000 miles | Above 10,000 |
|---|---|---|
| Cars and vans | 55p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
| Each passenger carried | 5p | 5p |
Source: gov.uk mileage rules, checked 13 August 2026.
Passenger payments have no Mileage Allowance Relief, so unlike the main rate you cannot claim the shortfall back if your employer declines to pay them. Compare a journey's actual fuel cost against what you can claim with the fuel cost calculator.
Holiday entitlement
Statutory minimum. Many contracts give more.
| Item | Figure |
|---|---|
| Statutory minimum | 5.6 weeks a year |
| Maximum required | 28 days, however many days a week you work |
| Irregular hours and part-year | 12.07% of hours worked |
Source: gov.uk holiday entitlement, checked 13 August 2026.
The 12.07% accrual applies to leave years beginning on or after 1 April 2024, and the same percentage is used for rolled-up holiday pay, though one is a share of hours and the other a share of pay. Bank holidays do not have to be given on top: an employer can count them within the 5.6 weeks. Work yours out with the holiday entitlement calculator.
Statutory notice periods
The minimum. A contract can require more, never less.
| Service | Employer must give | Employee must give |
|---|---|---|
| Under 1 month | None | None |
| 1 month to 2 years | 1 week | 1 week |
| 2 to 12 years | 1 week per year | 1 week |
| 12 years or more | 12 weeks (capped) | 1 week |
Source: gov.uk notice periods, checked 13 August 2026.
The asymmetry is the point: after twenty years your employer owes you twelve weeks and you owe them one. Length of service only raises what you are owed. The notice period calculator works it from your start date.
What changed in April 2026
An unusually heavy year: sick pay was rewritten, paternity became a day-one right, mileage rose to 55p after fourteen years, and dividend tax went up two points. If a payroll system or a template disagrees with a figure above, one of those is the likely reason.
The full picture, including two changes widely reported as April that are actually scheduled for January 2027, is in what changed for UK pay in April 2026.