April 2026 Tax ChangesEverything You Need to Know.
NMW up to £12.71. VAT threshold to £90,000. CGT BADR at 18%. Employer NI still at 15%. Every change that affects your payroll, your contractors, and your bottom line — with free calculators to check compliance instantly.
Key Dates for 2026-27
Mark these deadlines in your compliance calendar.
1 April 2026
New NMW/NLW rates take effect
1 April 2026
VAT threshold rises to £90,000
6 April 2026
New tax year begins (2026-27)
6 April 2026
CGT BADR rate rises to 18%
6 April 2026
Frozen income tax thresholds continue
19 April 2026
First PAYE payment under new rates
31 May 2026
Deadline to issue P60s for 2025-26
6 July 2026
P11D deadline for 2025-26 benefits
What's Changing in 2026-27
Six changes every UK employer and contractor needs to prepare for. Click any card to check your compliance.
National Living Wage (21+)
Was
£12.21/hr
Now
£12.71/hr
+£1,185/yr per full-time worker (37.5 hrs/wk)
Employer NI Rate
Was
13.8%
Now
15%
Secondary threshold down to £5,000. Employment Allowance up to £10,500.
VAT Registration Threshold
Was
£90,000
Now
£90,000
Deregistration threshold rises to £88,000. Monitor your rolling 12-month turnover.
Capital Gains Tax (BADR)
Was
14% (2025-26)
Now
18% (2026-27)
Business Asset Disposal Relief rate rises again. Plan disposals accordingly.
Income Tax Thresholds
Was
£12,570 PA
Now
£12,570 PA (frozen)
Personal allowance and basic rate band frozen until 2028. Fiscal drag continues.
IR35 Off-Payroll Rules
Was
Status quo
Now
HMRC enforcement increasing
No legislative change, but HMRC compliance activity is rising. Review all contractor engagements.
2026-27 Rates at a Glance
All the numbers your payroll and accounting teams need.
| Rate / Threshold | 2025-26 | 2026-27 | Change |
|---|---|---|---|
| National Living Wage (21+) | £12.21/hr | £12.71/hr | +5.0% |
| NMW 18-20 | £10.00/hr | £10.85/hr | +7.0% |
| Employer NI Rate | 15% | 15% | No change |
| Employer NI Threshold | £5,000 | £5,000 | No change |
| Employment Allowance | £10,500 | £10,500 | No change |
| VAT Registration Threshold | £90,000 | £90,000 | +£5,000 |
| VAT Deregistration Threshold | £88,000 | £88,000 | +£5,000 |
| Personal Allowance | £12,570 | £12,570 | Frozen |
| Basic Rate Band | Up to £50,270 | Up to £50,270 | Frozen |
| Higher Rate Band | £50,271–£125,140 | £50,271–£125,140 | Frozen |
| Employee NI Rate | 8% | 8% | No change |
| CGT BADR Rate | 14% | 18% | +4pp |
| CGT Higher Rate | 24% | 24% | No change |
| Auto-Enrolment (Total Min) | 8% | 8% | No change |
| SSP Weekly Rate | £116.75 | £123.25* | TBC |
* Some 2026-27 rates are provisional pending official HMRC confirmation (typically published late March). Rates shown are based on Autumn Budget 2024 and Spring Statement 2025 announcements.
Your April 2026 Checklist
Steps to take before the new tax year to stay compliant and avoid penalties.
Update payroll software
Ensure your payroll system has the 2026-27 NMW rates, tax codes, and NI thresholds loaded before the first April pay run.
Review all employee pay rates
Check every worker is at or above the new NMW/NLW floor. Pay particular attention to age-band crossovers (workers turning 21).
Monitor your VAT turnover
The VAT registration threshold remains at £90,000. Monitor your rolling 12-month turnover and register promptly if you exceed it.
Review contractor IR35 status
HMRC compliance activity is increasing. Reassess all off-payroll engagements using the three employment tests.
Plan capital disposals
BADR rises from 14% to 18% on 6 April. If you are planning a business sale, consider whether completing before that date saves tax.
Check employment allowance eligibility
The £10,500 employment allowance can offset your employer NI bill. Make sure you have claimed it if eligible.
Don't Wait for HMRC to Find the Problem.
Run a free compliance check across all 33 calculators. Updated for 2026-27 rates. No credit card required.