UK Tax Rates & Thresholds
HMRC tax thresholds, Corporation Tax marginal relief bands, Income Tax allowances, and Dividend Tax rates
1. Income Tax & Personal Allowance
Personal Allowance: £12,570 (Tapers £1 for every £2 above £100,000)
| Band Name | Taxable Income Threshold | Tax Rate |
|---|---|---|
| Basic Rate | £12,571 - £50,270 | 20% |
| Higher Rate | £50,271 - £125,140 | 40% |
| Additional Rate | £125,141 - No limit | 45% |
2. Corporation Tax & Marginal Relief
Effective Corporation Tax rate depends on company profit levels.
| Profit Band | Tax Band Category | Effective CT Rate |
|---|---|---|
| £0 - £50,000 | Small Profits Rate | 19.0% |
| £50,001 - £250,000 | Marginal Relief Band | 26.5% Marginal |
| £250,001+ | Main Rate | 25.0% |
3. National Insurance Contributions (2026/27 Reform)
| NIC Category | Threshold | Rate |
|---|---|---|
| Employer Class 1 Secondary Threshold | Above £5,000 / yr | 15.0% |
| Employee Class 1 Primary Threshold | £12,570 - £50,270 | 8.0% |
| Employee Class 1 Upper Earnings Limit | Above £50,270 | 2.0% |
| Sole Trader Class 4 Profits Limit | £12,570 - £50,270 | 6.0% |
4. Dividend Tax Rates
Tax-free Dividend Allowance: £500 / yr
| Income Band | Dividend Tax Rate |
|---|---|
| Basic Rate Band | 8.75% |
| Higher Rate Band | 33.75% |
| Additional Rate Band | 39.35% |
Authoritative GOV.UK Reference Sources
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