7 Westmoreland House, Cumberland Park, Scrubs Lane, London NW10 6RE
+44 20 8962 3400
info@capitalaccountants.co.uk

Tax Tables

Class 1 (Employees)Employee 2026-27Employer 2026-27
Main NIC rate8%15%
No NIC on first£242pw£96pw
Main rate charged up to (A)£967pwno limit
2% rate on earnings above£967pwN/A
Employment allowance per business (B)N/A£10,500
(A) Nil rate of employer NIC on earnings up to £967pw for employees aged under 21, apprentices aged under 25 and ex-armed forces personnel in their first twelve months of civilian employment
(B) Some businesses do not qualify, including certain sole director companies and employers who have an employer’s Class 1 NIC liability of £100,000 or more for 2022/23.
Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).
Class 2 (Self-employed)
Flat rate per week if profits above £12,570£0.00
Small profits threshold£7,105
Class 3 (Voluntary)
Class 3: Flat rate per week£18.40
Class 4 (Self-employed)
On profits between £12,570 and £50,2706%
On profits over £50,2702%

Details2026-272025-26
Annual exempt amount
Individuals, estates, etc£ 3,000£ 3,000
Trusts generally£ 3,000£ 1,500
Tax rate
Individual (to basic rate limit)18% (A)18% (A)
Individual (above basic rate limit)24% (A)24% (A)
Trusts, estates24% (A)24% (A)
Business Asset Disposal Relief (BADR)18% (B)14% (B)
Investors’ Relief (IR)18% (C)14% (C)
(A) Except for carried interest and chargeable gains on residential property which are taxed at 18% up to the basic rate limit and 28% above the basic rate limit.
(B) For trading businesses and companies (minimum 5% employee or director shareholding) held for at least one year.
(C) Shares in an unquoted trading company may qualify on lifetime gains up to £10m.

Year to2026-272025-26
Corporation Tax rate25%25%

Research and development relief

2026-272025-26
SME enhanced expenditure deduction scheme(1)86%86%
Large company R&D Expenditure Credit (RDEC) scheme(2)20%20%
(1) Additional deduction for qualifying R&D.
(2) Taxable expenditure credit for qualifying R&D. SMEs that make losses can surrender the deduction to HMRC in exchange for a payment of 14.5% of the loss (capped at £20,000 plus 3 x PAYE & NIC for periods beginning from 1.4.21).

 

DetailsCurrent Rate (2026-27)
Standard rate (1/6 of VAT-inclusive price)20%
Tourism and hospitality sector reduced rate – from 1.10.21-31.3.2212.5%
Taxable Turnover Limits
Registration level - Taxable turnover£90,000 per annum
Deregistration level - Taxable turnover£88,000 per annum
Flat Rate Scheme (FRS)
Annual taxable turnover to enter schemeUp to £150,000
Must leave scheme if annual gross turnoverExceeds £230,000
If using FRS, the VAT paid by the business is a fixed percentage (based on business category) of ‘FRS turnover’ rather than the net of output tax over input tax. Input tax is usually not recoverable.
Cash accounting and Annual accounting schemes
Annual taxable turnover to enter schemeUp to £1.35m
Must leave scheme if annual taxable turnoverExceeds £1,60m

State pension (per week)2026–272025–26
Old state pension£184,90£176,45
New state pension *£241,30£230,25
* Applies to those reaching state retirement age after 5 April 2024.

Taxable benefit: List price of car multiplied by chargeable percentage.

 

CO2
g/km		Electric
Range
miles		2026-272025-26
0N/A4%3%
1-50>1304%3%
1-5070-1297%6%
1-5040-6910%9%
1-5030-3914%13%
1-50<3016%15%
51-54N/A17%16%
Then a further 1% for each 5g/km CO2 emissions, up to a maximum of 37%.
Diesel cars that are not RDE2 standard suffer a 4% supplement on the above figures but are still capped at 37%.

 

FUEL BENEFIT2026-272025-26
 
Multiply the CO2% used for the car benefit by£29,200£28,200
Vans – Fixed charge£4,170£4,020
Vans – Fuel benefit  (if fuel is provided by the employer for private travel)£798£769
Zero-emission vans charged£0£0
Employee contributions do not reduce taxable figure unless all private fuel is paid for by the employee (in which case there is no benefit charge).

 

The Child Trust Fund (CTF) is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011.
The money in the CTF account belongs to the child but can’t be taken out until they are 18.
Parents, family and friends can add money to the account up to a limit of £9,000 in the 2026 to 2027 tax year.

You can’t apply for a new Child Trust Fund because the scheme is now closed. You can apply for a Junior ISA instead.

JUNIOR ISA

You can’t have a Junior ISA as well as a Child Trust Fund. If you want to open a Junior ISA ask the provider to transfer the trust fund into it.
The money in the Junior ISA account belongs to the child. The child can take control of the account when they’re 16 but can’t withdraw until they are 18.

Your child can only have:

  • 1 cash Junior ISA
  • 1 stocks and shares Junior ISA

 

Anyone (including child) can pay money into a Junior ISA, but the total amount paid in can’t go over £9000 in the 2026 to 2027 tax year.

 

(Effective from 01 March 2026)
for employee private mileage reimbursement or employer reimbursement of business mileage in company cars
Engine SizePetrol – rate per mile
1400cc or less12p
1401cc – 2000cc14p
Over 2000cc22p
Engine SizeLPG – rate per mile
1400cc or less10p
1401cc – 2000cc12p
Over 2000cc19p
Engine SizeDiesel – rate per mile
1600cc or less12p
1601cc – 2000cc13p
Over 2000cc18p

 

 

 2026-27
Share incentive plans
Employer contributions£3,600
Employer matching(2:1)
Employee£1,800
 
Enterprise management incentive option value£250,000
Approved share option schemes option value£60,000
Savings-related share options per month (up to)£500

 

 

 2026-272025-26
Overall limit£20,000£20,000
Lifetime ISA£4,000£4,000
Junior ISA£9,000£9,000
Relief
EIS30%£1,000,000 (A)£1,000,000 (A)
Seed EIS (SEIS)50%£200,000£2,000,000
Venture Capital Trust (VCT)30%£200,000£200,000

 

(A) The annual limit is increased to £2,000,000 provided that any amount over £1,000,000 is invested in knowledge-intensive companies

 Description 2026-272025-26
Nil rate band (NRB)(1)£325,000£325,000
NRB Residential enhancement (RNRB)(2)£175,000£175,000
Tax rate on death(3)40%40%
Tax rate on lifetime transfers to most trusts20%20%
1) Up to 100% of the proportion of a deceased spouse's/civil partner's unused NRB and RNRB band may be claimed to increment the current NRB and RNRB when the survivor dies.

(2) RNRB is available for transfers of a main residence to (broadly) direct descendants. It tapers away at the rate of £1 for every £2 of estate value above £2m.

(3) Rate reduced to 36% if at least 10% of the relevant estate is left to charity. Unlimited exemption for transfers between spouses/civil partners, except if a UK long-term resident transferor and non-long-term resident transferee, where maximum exemption is £325,000.

 

100% Business Property Relief (BPR) for all shareholdings in qualifying unquoted trading companies, qualifying unincorporated trading businesses and certain farmland/buildings.
Reduced tax charge on gifts within 7 years before death
Years before death0-33-44-55-66-7
% of full death tax charge payable10080604020
Annual exemptions for lifetime gifts include £3,000 per donor and £250 per recipient.

 

Plant and machinery allowances 2026-27Rate
Expenditure 1.4.2026-31.3.2027 (companies only)
First-year allowance (main pool expenditure)100%
Super-deduction (main pool expenditure)N/A
First-year allowance (special rate pool expenditure)50%
Annual Investment Allowance (AIA)
expenditure 1.4.26 - 31.3.27 of up to £1m100%
New electric vans100%
Writing down allowance: general pool (reducing balance)14%
Writing down allowance: special rate pool (reducing balance)6%
Motor cars purchased
CO2 (g/km)Allowance
New cars onlyNil100%
In general pool1 to 5018%
In special rate poolabove 506%
Structures and buildings allowance
Fixed deduction per annum3%

 

Payment dates
Self assessment2026-272025-26
1st payment on account31 January20272026
2nd payment on account31 July20272026
Balancing payment31 January20282027
Capital Gains Tax (A)31 January20282027
(A) A CGT return is due within 60 days of completion of sale of any UK land and buildings by a non-resident and of sale of UK residential property with a tax liability by a UK resident. Any CGT payable is also due within 60 days
Other payment dates2027-262025-26
Class 1A NIC19 July20272026
Class 1B NIC19 October20272026
Corporation tax is due 9 months and 1 day from the end of the accounting period, unless a ‘large’ company paying by quarterly instalments.
Filing deadlines2026-272025-26
Issue P60s to employees31 May 202731 May 2026
P11D, P11D(b)6 July 20276 July 2026
Self Assessment Tax Return (SATR)
paper version31 October 202731 October 2024
Online SATR if outstanding tax to be included in 2024/25 PAYE code (if under £3,000)30 December 202730 December 2024
Online SATR31 January 202831 January 2025
A CGT return is due within 60 days of completion of sale of UK land and buildings by a non-resident and of sale of UK residential property with a tax liability by a UK resident.

 

Universal Credit Rates (Monthly)

Standard Allowance

2026–272025–26
Single under 25£338.58£316.98
Single 25 or over£424.90£400.14
Couple both under 25£528.34£497.55
Couple (one or both 25+)£666.97£628.10

Child Elements

2026–272025–26
First child (born before 6 April 2017)£351.88£339.00
First child (born after 6 April 2017) / second & subsequent child£303.94£292.81
Disabled child (lower rate)£164.79£158.76
Disabled child (higher rate)£514.71£495.87

Additional Elements

2026–272025–26
Carer element£209.34£201.68
Limited Capability for Work (LCW)£158.76£158.76
Limited Capability for Work and Work-Related Activity (LCWRA) – existing claimants£429.80£423.27
Childcare costs (1 child – max)£1,071.09£1,031.88
Childcare costs (2+ children – max)£1,836.16£1,768.94
Work allowance (higher rate)£710.00£684.00
Work allowance (lower rate)£427.00£411.00

 

Who is eligible for Jobseeker’s Allowance?
To claim Jobseeker’s Allowance you need to be actively looking for work and:
# over 18 but below State Pension age
# unemployed or working fewer than 16 hours per week
# living in England, Scotland or Wales
Under 18s: you can’t get Jobseeker’s Allowance, except in special circumstances.
Under 20s: you can’t get Jobseeker’s Allowance while you are in education and your parents are receiving Child Benefit for you.
Full time students: you can’t usually get Jobseeker’s Allowance until your course has officially finished – check the date with your college or university.
How much will you get paid?
Depending on your circumstances you may be entitled to the following amounts:
AgeMaximum weekly amount
18 to 24£75.65
25 or over £95.55
Couples (both aged over 18)£150.15

 

All amounts are the maximum weekly rates for Jobseeker’s Allowance for the tax year 6 April 2026 – 5 April 2027.

2026-272025-26
Lifetime Allowance (LA)abolishedabolished
Annual Allowance (AA)*£60,000£60,000
Annual relievable pension inputs are the higher of earnings (capped at AA) or £3,600.

 

 

Transfers of property are subject to stamp duty land tax at the following rates:
   
ResidentialStandard Rate
(Single)		Buy-to-let
(Second home rate)
Value up to to £125,0000%5%
Over £125,000* to £250,0002%7%
Over £250,000 to £925,0005%10%
Over £925,000 to £1,500,00010%15%
Over £1,500,000**12%17%
The calculation of SDLT on purchase of non-residential property was changed from the whole transaction value to the same basis as residential (consideration falling within each band).
CommercialTax Rate
Value up to £150,0000%
Over £150,000 to £250,0002%
Over £250,0005%
The rate of stamp duty / stamp duty reserve tax on the transfer of shares and securities is generally payable at 0.5 per cent. If you buy stocks and shares for £1,000 or less you don’t normally have to pay any stamp duty.
New Leases

Residential leases (NPV of rent):

Up to £125,000 → 0%

Over £125,000 → 1%

Non-residential leases (NPV of rent):

Up to £150,000 → 0%

Over £150,000 → 1%

Duty is charged according to the net present value (NPV) of rental payments over the term of the lease.

VAT is excluded from consideration provided the landlord has not opted to tax before the lease is granted.

Lease premiums
Duty on premiums is the same as for transfers of land.

A statutory system of Approved Mileage Allowance Payments (AMAPs) applies for employees using their own vehicles for business journeys, as follows:
Cars and vans:
on the first 10,000 miles in the tax year45p per mile
on each additional mile above this25p per mile
Business passengers5p per mile
Motorcycles24p per mile
Bicycles20p per mile

Unless the employee is reimbursed at a rate higher than the AMAP, the payments do not need to be reported on a P11D. If the employer pays less than these rates, it is possible for the employee to claim income tax relief for the shortfall.
Rates of up to 5p per mile, per passenger, are also tax and NICs free when paid for the carriage of fellow employees on the same business trip. This also covers volunteers who drive for hospital care services etc, even though they are not strictly employees.

CategoryAmount / Rate
Personal Allowance£12,570 per year (tax-free income)
Basic Income Tax Rate20% (£12,571 – £50,270)
Higher Income Tax Rate40% (£50,271 – £125,140)
Additional Income Tax Rate45% (over £125,140)
Employee National Insurance8%
Employer National Insurance15%
PAYE Payment Deadline19th of the following month (22nd if paid electronically)

How PAYE works: payroll automatically deducts Income Tax, National Insurance and other applicable deductions from an employee’s salary and reports them to HMRC via RTI.

For 2026–2027, the Personal Allowance is £12,570 (tax code 1257L), meaning income up to this amount is tax-free.

 

Capital Accountants Ltd

Capital Accountants was established in 1993. We are a firm of financial accountants based in North West London although we serve clients from all around the UK and as far places as Germany, USA and the Middle East.

Incorporated in England and Wales under number 04126052 whose registered office is at 7 Westmoreland House, Cumberland Park, London NW10 6RE © 2026

Contact us

7 Westmoreland House
Cumberland Park, Scrubs Lane
London NW10 6RE

Phone: +44 20 8962 3400
Email: info@capitalaccountants.co.uk

Online Payment