The UK Tax Guide 2026/27
Real numbers, plain English, for sole traders and limited company directors across the UK. With worked examples and free calculators to match.
PDF · 48 pages · 1.1 MB · No email needed
The 2026/27 numbers.
The figures sole traders and company directors use most. Open the Income Tax bands and personal allowances below.
For your business
- Class 4 NI (sole traders)6%/ 2%
6% on profits from £12,570 to £50,270, then 2% above that.
- Class 2 NI£3.65/ week
Voluntary if your profits are under £7,105; it protects your State Pension record.
- Corporation Tax (from 1 April 2026)19%/ 25%
19% on profits under £50,000, 25% over £250,000, with marginal relief in between.
- Employer NI15%
On salaries above £5,000 a year. Employment Allowance of up to £10,500, if eligible.
- VAT registration£90,000
Taxable turnover over any rolling 12 months, or expected in the next 30 days. Not your profit.
- Making Tax DigitalApr 2026
For qualifying income over £50,000; over £30,000 from April 2027; over £20,000 from April 2028.
Income Tax bands
England, Wales and Northern Ireland. Scotland sets its own bands for earnings and profits; the guide lists them.
Earn over £100,000? Your Personal Allowance drops by £1 for every £2 above it, and disappears at £125,140.
Personal allowances
- Employee NI (your salary)8%/ 2%
8% on earnings between £1,048 and £4,189 a month, then 2% above that (category A).
- ISA allowance£20,000
The most you can save across all your ISAs this tax year, tax-free.
- Lifetime ISA£4,000+25%
Up to £4,000 a year, with a government bonus of up to £1,000. First payment must be made before you're 40.
- Dividend allowance£500
Above it: 10.75% basic, 35.75% higher and 39.35% additional rate.
- Personal Savings Allowance£1,000
Tax-free interest for basic-rate taxpayers. £500 for higher rate, £0 for additional rate.
- Capital Gains Tax allowance£3,000
The annual tax-free amount on gains for individuals.
Sources: Self-employed National Insurance · Corporation Tax rates · Employer rates and thresholds · Register for VAT · Making Tax Digital · GOV.UK Income Tax rates · National Insurance rates · ISAs · Lifetime ISA · Dividends · Savings interest · Capital Gains Tax. Checked 3 November 2026. Not financial advice.
Dates to diary.
Self-employed, a landlord or earning on the side? These dates are for your 2025/26 tax return, the one due in January 2027. For the 2026/27 tax year (due January 2028), use the deadline calendar.
Deadline to tell HMRC you need to complete a tax return.
Paper tax returns due by 11:59pm.
Online tax return and any tax you owe, both due by 11:59pm.
Source: GOV.UK Self Assessment deadlines. Checked 3 November 2026.
What you'll learn.
Eight chapters, from the basics to your own plan. Sole traders: chapters 1, 3, 6, 7 and 8. Company directors: chapters 1, 2, 4 and 8. Not sure? Try the chapter finder.
- 01FoundationsThe tax year and key dates · Turnover, profit and cash
- 02Sole trader or limited company?How to decide · £45,000 and £100,000 compared
- 03Sole tradersIncome Tax and NI · Expenses · Equipment · Shortcuts
- 04Limited companiesCorporation Tax · Deadlines · Paying yourself · Director’s loans
- 05VATTurnover, not profit
- 06Self Assessment and payments on accountHow they work · Why January costs more · Missed deadlines
- 07Making Tax Digital and recordsWho, when and what · The monthly routine
- 08Your planThe Tax Reps · Cash-flow plan · Money anxiety · Checklist · Your numbers
Plus: 2026/27 rates at a glance (including Scottish bands), a fill-in worksheet that does the sums for you, FAQs, a glossary and links to every official source.
Put it to work.
Six free tools that go with the guide. Your figures stay in your browser.
- 01Tax estimateIncome Tax and Class 4 NI on your profit, with a sole trader vs limited company comparison.↗
- 02Build my tax potYour monthly saving amount, dated to each payment to HMRC.↗
- 03Payments on accountSee what’s due each January and July, and why January costs more.↗
- 04Your plan checklistFifteen actions, linked to the right page of the guide.↗
- 05Which chapters?Answer a few questions and get your reading list.↗
- 06Deadline calendarAdd your 2026/27 deadlines to your phone, with reminders.↗
Written by an accountant.
I studied Economics at Goldsmiths, University of London, and have worked in UK accountancy for four years. Through my practice, TaxationMadeSimple, I help self-employed people and small company owners with tax returns, accounts and planning.
- EconomicsGoldsmiths, University of London
- Four yearsin UK accountancy
- FounderTaxationMadeSimple
Knowledge and regular habits can help you feel more in control of your money.
Common questions.
What is the Personal Allowance for 2026/27?
£12,570. It goes down by £1 for every £2 of adjusted net income above £100,000, and is gone completely at £125,140.
When does the 2026/27 tax year start and end?
It runs from 6 April 2026 to 5 April 2027.
What are the Income Tax rates for 2026/27?
Outside Scotland: 0% up to £12,570, 20% from £12,571 to £50,270, 40% from £50,271 to £125,140, and 45% over £125,140. Scotland has different bands.
How much can I put in an ISA in 2026/27?
Up to £20,000 across your ISAs. Up to £4,000 of that can go into a Lifetime ISA, which gets a 25% government bonus of up to £1,000 a year.
When is the Self Assessment deadline?
For 2025/26, online returns and payment are due by 11:59pm on 31 January 2027. Paper returns were due by 31 October 2026, and registration by 5 October 2026.
What are the dividend tax rates for 2026/27?
After the £500 dividend allowance: 10.75% at basic rate, 35.75% at higher rate and 39.35% at additional rate.
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