UK tax rates 2026/27 at a glance
| Personal Allowance (tax-free) | £12,570 (frozen until April 2031) |
| Basic rate 20% | £12,571 – £50,270 |
| Higher rate 40% | £50,271 – £125,140 |
| Additional rate 45% | over £125,140 |
| Allowance taper | −£1 for every £2 over £100,000 |
| Employee NI | 8% £12,570–£50,270, 2% above |
| Employer NI | 15% above £5,000 |
Scotland
19% starter (£12,571–£16,537), 20% basic (to £29,526), 21% intermediate (to £43,662), 42% higher (to £75,000), 45% advanced (to £125,140), 48% top. National Insurance is the same across the UK.
Student loans 2026/27
9% of income above £26,900 (Plan 1), £29,385 (Plan 2), £33,795 (Plan 4) or £25,000 (Plan 5); 6% above £21,000 for a Postgraduate Loan. Indian degrees do not create a UK student loan; this only applies if you studied in the UK with Student Finance.
What Indians often get wrong on a first UK payslip
- Emergency tax code (1257L W1/M1 or X): common in your first job without a P45. You usually get any overpayment back automatically once HMRC has your details.
- No NI number yet: you can start work; tell payroll as soon as it arrives (it is often shown on your eVisa record).
- Pension opt-out: auto-enrolment pensions add at least 3% from your employer. Opting out is legal but means losing that money; you can usually take a UK pension from age 57 (from 2028), even if you move back to India.
Sources: GOV.UK: Income Tax rates and Personal Allowances · GOV.UK: Income over £100,000 · mygov.scot: Scottish Income Tax rates · GOV.UK: Rates and thresholds for employers 2026 to 2027 · GOV.UK: Repaying your student loan · The Pensions Regulator: earnings thresholds · GOV.UK: thresholds maintained until April 2031.