Paternity Pay Calculator

From 6 April 2026, the Statutory Paternity Pay (SPP) rate is £194.32 per week or 90% of your average weekly earnings, whichever is lower. This rate applies to the first two weeks of leave taken. Employees must have been employed for at least 26 weeks by the end of the 15th week before the expected week of childbirth to qualify.

To calculate SPP for a contractor, divide their total earnings over the relevant 8-week period by the number of weeks to find the average weekly earnings. If this average exceeds £194.32, the payment is capped at the statutory rate of £194.32 per week. If it is below this figure, they receive 90% of their calculated average weekly earnings instead.

From 6 April 2026, MTD for Income Tax Self Assessment becomes mandatory for sole traders and landlords with gross income exceeding £50,000. This requirement will expand to those with income over £30,000 in April 2027. Contractors must keep digital records and submit quarterly updates to HMRC via compatible software.

For the 2026/27 tax year, employers pay 15% National Insurance on earnings above £5,000 per employee. There is no secondary threshold, meaning the 15% rate applies to all earnings above the £5,000 annualised figure. This simplified structure replaces the previous tiered system for most standard employees.

The VAT registration threshold remains at £90,000 for the 2026/27 tax year, meaning businesses must register if their taxable turnover exceeds this amount in any rolling 12-month period. Conversely, businesses can deregister if their turnover falls below £88,000. These figures are set by HMRC and apply to all standard VAT-registered entities.