The UK HMRC has issued guidance on employer rates and thresholds for the 2025-2026 tax year, covering the period from 6 April 2025 to 5 April 2026 on 31 January 2025.

This covers the PAYE tax rates and thresholds for 2025-2026 for England, Northern Ireland, Scotland, and Wales.

England and Northern Ireland

The standard employee personal allowance for the 2025 to 2026 tax year is:

  • GBP 242 per week
  •  GBP 1,048 per month
  •  GBP 12,570 per year
PAYE tax rate Rate of tax Annual earnings the rate applies to
(above the PAYE threshold)
Basic tax rate             20% Up to GBP 37,700
Higher tax rate             40% From GBP 37,701 to GBP 125,140
Additional tax rate             45% Above GBP 125,140

 

Scotland

The standard employee personal allowance for the 2025 to 2026 tax year is:

  •  GBP 242 per week
  •  GBP 1,048 per month
  •  GBP 12,570 per year

 

PAYE tax rate Rate of tax Annual earnings the rate applies to

(above the PAYE threshold)

Basic tax rate 20%             Up to GBP37,700
Higher tax rate 40% From GBP 37,701 to GBP125,140
Additional tax rate 45% Above GBP 125,140

 

Wales

The standard employee personal allowance for the 2025 to 2026 tax year is:

  • GBP242 per week
  • GBP 1,048 per month
  • GBP 12,570 per year
PAYE tax rate Annual earnings the rate applies to

(above the PAYE threshold)

            Rate of tax
Basic tax rate 20% Up to GBP 37,700
Higher tax rate 40% From GBP 37,701 to GBP 125,140
Additional tax rate 45% Above GBP 125,140