What changes, what doesn't, and when
| Measure | From | Status |
|---|---|---|
| National Living Wage £13.21 (all minimum wage rates up) | 1 April 2027 | Confirmed rate1 |
| Employer NI 15%, threshold £5,000, Employment Allowance £10,500 | 6 April 2027 | Unchanged2 |
| NI thresholds held at 2026/27 levels (except the lower earnings limit) | To 2030 to 2031 | Previously announced3 |
| Lower earnings limit £129 → £133 a week | 6 April 2027 | Confirmed rate3 |
| Mileage above 10,000 business miles 25p → 35p | 6 April 2027 | Confirmed rate3 |
| Payrolling company cars, vans, fuel and medical benefits | 6 April 2027 | Announced, needs legislation3 |
| Payrolling most other benefits | 6 April 2028 | Announced, needs legislation3 |
| Subsistence benchmark rates £20 / £60 / £75 | 6 April 2028 | Announced, needs legislation3 |
| Salary sacrifice: only the first £2,000 of pension contributions NI-free | 6 April 2029 | Announced in Budget 20254 |
| Direct Debit required for PAYE liabilities | April 2029 | Announced, needs legislation3 |
| SSP and SMP rates for 2027/28 | April 2027 | Not yet published |
Until each start date, the 2026/27 rules apply. Our calculators use 2026/27 figures.
Minimum wage from 1 April 2027
Every minimum wage rate rises by 3.9% on 1 April 20271. The current rates apply until then5.
| Rate | Now (to 31 March 2027) | From 1 April 2027 | Rise |
|---|---|---|---|
| National Living Wage (21 and over) | £12.71 | £13.21 | 3.9% |
| 18 to 20 | £10.85 | £11.27 | 3.9% |
| 16 and 17, and eligible apprentices | £8.00 | £8.31 | 3.9% |
| Accommodation offset (per day) | £11.10 | £11.53 | 3.9% |
What it costs: a full-time employee on 37.5 hours a week costs £28,309 a year at today's £12.71 (pay, employer NI and the minimum pension), and £29,459 at £13.21. That uses the 2026/27 employer NI and pension rules, which the Budget left unchanged for employer NI2, and applies no Employment Allowance. The minimum wage cost page has the same table for 35 and 40 hours.
Employer National Insurance in 2027/28
The employer rate stays at 15% on earnings above the secondary threshold of £5,000 a year (£96 a week), and Employment Allowance stays at £10,5002. The thresholds stay at 2026/27 levels until 2030 to 2031, apart from the lower earnings limit, which rises to £133 a week on 6 April 20273.
Because pay rises while the thresholds stand still, the NI bill on the same job still rises each year. The employer NI calculator shows the cost on any salary.
Benefits in kind, mileage and expenses
- Payrolling: from 6 April 2027 employers will have to tax company cars, vans, car and van fuel and medical benefits through payroll instead of on a P11D, with most other benefits following on 6 April 2028. This was announced and still needs legislation3.
- Mileage: the approved rate stays 55p a mile for the first 10,000 business miles, and the rate above 10,000 miles rises from 25p to 35p from 6 April 20273.
- Company cars: zero-emission cars move from 4% to 5% benefit in kind in 2027/28, as previously announced. The van fuel benefit charge is £825 for 2027/283.
- Subsistence: new benchmark scale rates of £20 (over 5 hours), £60 (over 10 hours) and £75 (over 24 hours) are planned from 6 April 2028, subject to legislation3.
Salary sacrifice and pensions from April 2029
From 6 April 2029, only the first £2,000 a year of an employee's pension contributions made through salary sacrifice will be free of National Insurance4. Sacrifice above that will attract employee and employer NI like normal pay. The change was announced in Budget 2025 and nothing changes before April 2029.
Not published yet
- Statutory Sick Pay, Statutory Maternity Pay and the other statutory family payments for 2027/28: the current rates stay in force until the new ones are set.
- Student loan Plan 2 threshold for 2027/28. The Plan 1 threshold rises to £28,005 from 6 April 20273.
- HMRC's rates and thresholds for employers 2027 to 2028, which normally appears before April6.