Limitless Tax
Tax year 2026 / 27 DIY Guide
Updated for 6 April 2026 — 5 April 2027

Work out your UK
take-home pay,
properly.

A precise calculator for the 2026/27 tax year with support for pension salary sacrifice, every student loan plan, self-employed income, and Scotland. No ads. No sign-up. No data collection.

Your gross salary
£
Period
Region
▸ Student loans
Undergraduate plans (1, 2, 4, 5) are 9% above threshold. If you have multiple undergraduate plans, the deduction uses the lowest threshold. Postgraduate is always additional.
▸ Pension contributions
Contribution
%
Scheme type
Salary sacrifice reduces your gross before tax and NI — the most tax-efficient method, and what most modern workplace schemes use.
▸ Other salary sacrifice
EV car (£/year)
Cycle to work (£/year)
Other (£/year)
All salary sacrifice reduces gross pay before income tax and National Insurance. Your employer may also save 15% employer NI and pass some back.
▸ Advanced
Hours per week
Your take-home pay
£28,719.60
£2,393.30/mo · £552.30/wk · 82.1% of gross
Full breakdown by period
How your income is taxed
Live now · Phase 1 active

Making Tax Digital
is here.

From 6 April 2026, self-employed people and landlords earning over £50,000 must keep digital records and submit quarterly updates to HMRC. The threshold drops every year after. Here's where you stand.

April 2026 · Phase 1
£50,000+
Sole traders & landlords with combined gross income above £50k must use MTD-compatible software now.
April 2027 · Phase 2
£30,000+
Threshold drops. Another ~900,000 sole traders & landlords mandated.
April 2028 · Phase 3
£20,000+
Final announced phase. Millions more affected. Partnerships still TBC.
60-second check
Coming soon · Premium

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Get a PDF cheat sheet with your figures pre-organised by HMRC form box — quarterly updates and annual final declaration. One page, no admin, copy the numbers straight across. Early access £5/month.

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Current rates

UK tax rates for 2026 / 27, at a glance.

Personal Allowance

£12,570
Tax-free · frozen until 2031

Basic rate — 20%

£12,571 – £50,270
Where most earners sit

Higher rate — 40%

£50,271 – £125,140
The "higher rate threshold"

Additional rate — 45%

£125,141+
No Personal Allowance

Class 1 NI (main)

8%
£12,570 – £50,270

Class 1 NI (upper)

2%
Above £50,270

Class 4 NI — self-employed

6% / 2%
Same thresholds as Class 1

Student Loan Plan 2

£29,385
9% above threshold

Student Loan Plan 5

£25,000
New — first year 2026/27
How it works

Why your payslip looks smaller than your salary.

Your UK gross salary runs through several deductions before it reaches your bank account: income tax, National Insurance, any student loan repayment, and pension contributions. Salary sacrifice reduces your gross before tax and NI are applied, which is why it's the single most powerful tool for reducing your tax bill.

For the 2026/27 tax year, the first £12,570 of your income is tax-free thanks to the Personal Allowance. Every pound above that is taxed in bands — not cliff-edges. Earning £50,271 doesn't push your whole salary into the 40% band, only the single pound above the threshold.

One quirk worth knowing: between £100,000 and £125,140, your Personal Allowance tapers away at £1 lost for every £2 earned. Combined with 40% higher rate and 2% NI, this creates an effective marginal rate of 62% — one of the highest in the developed world, and the main reason pension contributions become so attractive once you cross the £100k line.

Frequently asked

Questions we hear every payday.

How much is the UK Personal Allowance for 2026/27?
The standard Personal Allowance is £12,570 — frozen since April 2022 and set to stay at this level until at least April 2031. If you earn more than £100,000, the allowance tapers by £1 for every £2 over the threshold, disappearing entirely once you hit £125,140.
What are the 2026/27 income tax bands?
For England, Wales and Northern Ireland: 20% on income between £12,571 and £50,270, 40% between £50,271 and £125,140, and 45% above £125,140. Scotland has a stepped six-band system — use the Scotland toggle above for those rates.
How does pension salary sacrifice save tax?
Salary sacrifice reduces your gross salary before any income tax or National Insurance is applied. That means the government doesn't see the sacrificed amount at all — you save both income tax (20/40/45%) AND employee NI (8/2%) on the contribution. For higher-rate taxpayers this is worth up to 42% in combined relief, which you can't get from any other pension method.
What is Making Tax Digital (MTD) and does it affect me?
MTD for Income Tax is a new HMRC system that requires sole traders and landlords with gross income above £50,000 to keep digital records and submit quarterly updates — not just one annual Self Assessment. It started on 6 April 2026. The threshold drops to £30,000 in April 2027 and £20,000 in April 2028. PAYE employees are not affected. Use the "Am I affected?" check above for a quick verdict.
Do I need special software for MTD?
Yes — you must use HMRC-recognised software to submit quarterly updates. Popular options include Xero, QuickBooks, FreeAgent, Sage, and free tools like My Tax Digital. HMRC maintains the official recognised list at gov.uk. A spreadsheet alone is not enough, but "bridging software" lets you continue using a spreadsheet and just push the figures to HMRC.
What are the MTD quarterly deadlines?
For standard tax-year quarters, updates are due 7 August (Q1: Apr–Jul), 7 November (Q2: Aug–Oct), 7 February (Q3: Nov–Jan), and 7 May (Q4: Feb–Apr). The final declaration replacing your annual Self Assessment is due 31 January as before. Late submissions incur points under a new penalty regime.
How does Making Tax Digital change tax calculations?
It doesn't. MTD changes how you report your income, not how it's taxed. The same income tax rates, NI thresholds, and allowances apply. Our calculator figures remain accurate for anyone — employed or self-employed, MTD-mandated or not. What changes is the frequency and method of submission, plus the requirement for digital records.
What are the student loan thresholds for 2026/27?
Plan 1 £26,900, Plan 2 £29,385, Plan 4 (Scotland) £33,795, Plan 5 £25,000, and Postgraduate £21,000. Undergraduate plans repay at 9% above threshold; postgraduate at 6%. If you have multiple undergraduate plans, your payroll uses the plan with the lowest threshold.
How is self-employed tax different?
Self-employed people pay the same income tax rates on their profits (not turnover) but pay Class 4 NI at 6% rather than Class 1's 8%. Thresholds are identical. Class 2 NI was abolished for most sole traders in April 2024. Student loan repayments come through Self Assessment, not payroll.
Why is my effective tax rate 62% above £100,000?
Between £100,000 and £125,140 you lose £1 of Personal Allowance for every £2 earned, on top of paying the 40% higher rate and 2% NI. The result is an effective marginal rate of 62%. Pension contributions reduce your adjusted net income, which restores the allowance — making pensions one of the most tax-efficient moves for higher earners.
Is this calculator accurate?
The calculations use the official HMRC rates and thresholds for 2026/27 and have been verified against known worked examples. They cover the most common scenarios but don't model every edge case (unusual tax codes, marriage allowance transfers, dividend income, K codes, foreign income). For complex situations, speak to a qualified accountant.