Income Tax — What Changes in April 2026
The income tax personal allowance remains frozen at £12,570 until at least 2028, as announced in the Autumn Budget. This means that as wages rise, more of your income falls into taxable bands — a stealth tax increase known as fiscal drag.
The basic rate band (20%) runs from £12,571 to £50,270. The higher rate (40%) applies from £50,271 to £125,140. The additional rate of 45% applies above £125,140. These thresholds are unchanged from 2025/26.
National Insurance — What Changes in April 2026
The main National Insurance rate for employees remains at 8% on earnings between £12,570 and £50,270, and 2% above £50,270. Employer NI contributions increased from 13.8% to 15% in April 2026, which has led many employers to reduce hiring or limit pay rises.
Minimum Wage — What Changes in April 2026
The National Living Wage for workers aged 21 and over increases in April 2026. The exact figure is announced each autumn. For 2025/26, the rate was £12.21 per hour. The 2026/27 rate will be confirmed by the Low Pay Commission.
Student Loan Thresholds — What Changes in April 2026
Student loan repayment thresholds are typically uprated each April in line with average earnings. Plan 2 borrowers currently repay 9% of income above £27,295. This threshold may increase slightly from April 2026. Use our student loan calculator to see your exact repayments.
Pension Auto-Enrolment — What Changes in April 2026
The government has signalled plans to extend auto-enrolment to workers from age 18 (currently 22) and to remove the lower earnings limit. This would mean more workers start saving into a pension earlier and on a higher percentage of their earnings. The exact implementation date has not been confirmed.
Calculate Your New Take Home Pay
Use our free calculator to see exactly what you will take home from April 2026 based on the updated rates.