2025-26 UK Tax Year Guide
Everything you need to know about filing your 2025-26 income tax return
Tax Year
6 Apr 2024 - 5 Apr 2026
Self Assessment Deadline
31 January 2026
Paper Return Deadline
31 October 2026
📊 2025-26 UK Tax Rates & Bands
Personal Allowance: £12,570
The amount you can earn before paying income tax
| Tax Band | Tax Rate | Taxable Income Range |
|---|---|---|
| Personal Allowance | 0% | £0 - £12,570 |
| Basic Rate | 20% | £12,571 - £50,270 |
| Higher Rate | 40% | £50,271 - £125,140 |
| Additional Rate | 45% | Over £125,140 |
Income Tax
National Insurance
Capital Gains Tax
Dividend Tax
💰 2025-26 Key Allowances & Tax Reliefs
Personal Allowance
£12,570
Tax-free income for most people
ISA Allowance
£20,000
Annual ISA contribution limit
Pension Annual Allowance
£60,000
Maximum annual pension contribution
Marriage Allowance
£1,257
Transferable between spouses
Trading Allowance
£1,000
Tax-free trading income
Property Allowance
£1,000
Tax-free property income
🧮 How UK Tax Calculation Works
Progressive Tax System
The UK uses a progressive tax system where you pay different rates on different portions of your income, plus National Insurance contributions.
Example: Employee with £45,000 Annual Salary
Income Tax Calculation
Gross Salary£45,000
Personal Allowance-£12,570
Taxable Income£32,430
Basic Rate (£32,430 × 20%)£6,486
Total Income Tax£6,486
National Insurance Calculation
Annual Salary£45,000
NI Threshold-£12,570
Subject to 8% NI (£32,430)£2,594.4
Total National Insurance£2,594.4
Take-Home Pay Summary
Gross Salary£45,000
Income Tax-£6,486
National Insurance-£2,594.4
Annual Take-Home£35,919.6
Monthly Take-Home£2,993.3
Effective Tax Rate20.18%
🆕 2025-26 Tax Year Updates & Changes
Key Changes for 2025-26
- ✓Personal allowance frozen at £12,570 until 2028
- ✓Higher rate threshold remains at £50,270
- ✓Capital gains annual exemption reduced to £3,000
- ✓Dividend allowance reduced to £500
- ✓Pension annual allowance increased to £60,000
Important Reminders
- ⚠️High Income Child Benefit Charge applies from £50,000
- ⚠️Personal allowance reduces for income over £100,000
- ⚠️Making Tax Digital for Income Tax begins April 2026
- ⚠️Student loan thresholds vary by plan type
- ⚠️Scottish income tax rates differ from rest of UK