Business tax

Business Tax Tables 2026/27

Corporation tax, employer National Insurance, VAT, capital allowances, payroll and mileage rates for 2026/27, on two printable pages.

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Work out your own figures with our tax calculators → Also see the personal tax tables 2026/27.

Corporation tax

Taxable profits	Rate
£50,000 or less	19% (small profits rate)
£50,001 to £250,000	25% less marginal relief
Over £250,000	25% (main rate)

Marginal relief is 3/200 × (£250,000 − profits) for a 12 month period, which makes the rate on extra profit in this band 26.5%. The limits are divided by one plus the number of associated companies, and reduced for periods shorter than 12 months.

Employer National Insurance

Item	2026/27
Employer Class 1 rate	15% of pay above £5,000 a year
Employees under 21, apprentices under 25	0% up to £50,270
Employment Allowance	£10,500 (not available if the only employee is a director)
Class 1A (benefits in kind)	15%
Class 1B (PAYE settlement agreements)	15%
Lower earnings limit; primary threshold	£6,708; £12,570

VAT

Item	2026/27
Standard rate	20%
Reduced rate	5%
Zero rate	0%
Registration threshold	£90,000 of taxable turnover in any 12 months
Deregistration threshold	£88,000

Capital allowances

Allowance	Rate or limit
Annual investment allowance	£1,000,000
Full expensing (companies, new main-rate plant)	100%
First-year allowance, special-rate plant (companies)	50%
New first-year allowance, main-rate plant, spending from 1 January 2026	40%
Writing-down allowance, main pool	14% (was 18%; change from 1 April 2026 for companies, 6 April 2026 for others)
Writing-down allowance, special-rate pool	6%
Structures and buildings allowance	3%

Payroll rates

Item	From April 2026
National Minimum Wage, 21 and over	£12.71 an hour
18 to 20	£10.85 an hour
Under 18 and apprentices	£8.00 an hour
Statutory Sick Pay	£123.25 a week
Statutory maternity, paternity and adoption pay (flat rate)	£194.32 a week
Apprenticeship Levy	0.5% of pay bill over £3 million, less £15,000

Mileage rates

Vehicle	Per business mile
Car or van	55p for the first 10,000 miles, then 25p
Motorcycle	24p
Bicycle	20p
Passenger (extra)	5p

Company dates

Corporation tax payment: 9 months and 1 day after the period end
Corporation tax return: 12 months after the period end
Accounts to Companies House: 9 months after the period end
Confirmation statement: at least every 12 months

Payroll and VAT dates

PAYE and National Insurance: by the 22nd of the next month if paid electronically
P11D forms: 6 July
VAT return and payment: 1 month and 7 days after the period end

Planning an owner’s pay

£5,000: employer National Insurance starts
£6,708: lower earnings limit, where State Pension credit starts
£12,570: Personal Allowance and employee National Insurance threshold
£50,270: higher-rate and upper National Insurance limit

Dividends are taxed at 10.75%, 35.75% or 39.35% above a £500 allowance.

Using these tables

To work out your own figures, use our tax calculators at ksba.co.uk/tax-calculators.

Figures are for the 2026/27 tax year and were checked against GOV.UK in October 2026. Rules change, so please check before you rely on them.

How King Street can help

We can work out how these rates affect your company: corporation tax, what to pay yourself, what an employee really costs, and which allowances you can claim. We agree a fixed fee before work starts.

Email us about this guide 0161 835 23233rd Floor, 82 King Street, Manchester M2 4WQ

This guide is general information, not advice on your circumstances. Please speak to us before acting.

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