Tax Thresholds 2025/26
Summary of changes to rates, thresholds and allowances for tax year commencing 6th April 2025, including updates from the latest Spring Budget 2025.
Income Tax rates for England, Northern Ireland & Wales
| 2025/26 | Information | |
|---|---|---|
| Personal Allowance | £12,570 | An employee can earn £12,570 per year before paying any tax at all if they are on the standard 1257L tax code for the next year, that's £242 per week or £1,048 per month |
| Basic rate (20%) | £12,571 to £37,700 | |
| Higher rate (40%) | £37,701 to £125,140 | |
| Additional rate | Above £125,140 | Any earnings over £125,140 are taxed at 45% |
Income Tax rates for Scotland
| 2025/26 | |
|---|---|
| Starter (19%) | Up to £2,287 |
| Basic (20%) | £2,828 - £14,921 |
| Intermediate (21%) | £14,922- £31,092 |
| Higher (42%) | £31,093 - £62,430 |
| Advanced (45%) | £62,431 - £125,140 |
| Top (48%) | Above £125,140 |
National Insurance thresholds & rates
| Weekly - 2025/26 | Monthly - 2025/26 | Rate | |
|---|---|---|---|
| Primary Threshold (PT) | £242 | £1,048 | 8% |
| Secondary Threshold (ST) | £175 | £758 | 15% |
| Upper Earnings Limit (UEL) | £967 | £4,189 | 2% |
If you have come here from an e-mail, please make sure you complete the following before tax year end:
- Ensure your MyParasol app is updated with any changes.
- Check your National Insurance number is correct.
- Your timesheets are up to date and fully entered into the portal.
If you have any questions, please call us on 01925 696114 or email es@parasolgroup.co.uk. Alternatively, talk us via our live chat feature which is available on our website Monday - Thursday 8am - 6pm, and Friday 8am - 7pm.
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