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.