What the frozen allowance costs you
£1,645.00 a year, 58 hours of your work. Pushed into the 40% band by the freeze: yes. £11,818.10 until April 2031.
Extra tax and NI you pay, 2026-27 The tax-free allowance has been £12,570 since April 2021. By law it should have risen with prices. Here's the difference, in your money. We compare what you pay with the allowance frozen at £12,570 against what you'd pay if it had risen with prices every April since 2022, as the Income Tax Act 2007 says it should (£16,080 this year).
£1,645 a year
= 58 hours of your own work
Pushed into the 40% band by the freeze: yes. Yes — the freeze made you a higher-rate taxpayer. With the frozen thresholds 40% starts at £50,270; had they risen with prices it would start at £64,480 this year.
Tax £1,648.00, NI −£3.00 The frozen upper limit charges 2% instead of 8% on a slice of your pay. So your NI is a little lower than with indexed thresholds, while your income tax is a lot higher.
- From your April 2027 payslip
- £169.63 a month more
- Until the freeze ends, 5 April 2031
- £11,818.10 in all
£3,510 of ice that should have melted by 6 April 2026
£12,570frozen since 6 April 2021
£16,080 if it had risen with prices
Personal Allowance, 2021–2031. Ice, £12,570. Installed 6 April 2021. Scheduled to thaw 6 April 2031. Melted so far: 0.0%.
Until 5 April 2031
- 2026-27should be £16,080£1,645.00
- 2027-28should be £16,650£2,035.60
- 2028-29should be £16,990*£2,368.80
- 2029-30should be £17,330*£2,709.14
- 2030-31should be £17,680*£3,059.56
Total, 5 tax years£11,818.10
* Assumes 2% inflation each September from 2027 (the Bank of England target). Your pay rise applies from April 2027.
How it's calculated
The rule in the law, the thresholds year by year, your table
The tax-free allowance has been £12,570 since April 2021. By law it should have risen with prices. Here's the difference, in your money.
Two worlds, same salary. Frozen (what actually happens): Personal Allowance £12,570, basic rate limit £37,700, so 40% starts at £50,270; National Insurance 8% from £12,570 to £50,270 and 2% above. Indexed (what the law prescribes when there is no freeze): each April the allowance rises by September's CPI rate, the increase rounded up to the next £10 (Income Tax Act 2007, section 57), and the basic rate limit rises by the same rate, rounded up to the next £100 (section 21). The NI thresholds follow them, as the Government keeps them aligned.
The rule checks out: the Government raised £12,500 to £12,570 and £37,500 to £37,700 for 2021-22 with September 2020's 0.5%, exactly what these roundings give.
| Tax year | September CPI before | Allowance | Basic rate limit | 40% (and NI 2%) from |
|---|---|---|---|---|
| 2022-23 | 3.1% | £12,960 | £38,900 | £51,860 |
| 2023-24 | 10.1% | £14,270 | £42,900 | £57,170 |
| 2024-25 | 6.7% | £15,230 | £45,800 | £61,030 |
| 2025-26 | 1.7% | £15,490 | £46,600 | £62,090 |
| 2026-27 | 3.8% | £16,080 | £48,400 | £64,480 |
| 2027-28 | 3.5% | £16,650 | £50,100 | £66,750 |
| 2028-29 | 2.0% (assumed) | £16,990 | £51,200 | £68,190 |
| 2029-30 | 2.0% (assumed) | £17,330 | £52,300 | £69,630 |
| 2030-31 | 2.0% (assumed) | £17,680 | £53,400 | £71,080 |
Then for each tax year: income tax and employee NI in both worlds on the same salary, and the difference. Pence are rounded once, at the end (half up). The £100,000 taper (the allowance shrinks by £1 for every £2 above it), the £125,140 limit where 45% starts, and the rates 20/40/45% and 8/2% are the same in both worlds. Your pay rise applies each April from 2027; hours of work = extra ÷ (salary ÷ (hours a week × 52)).
Worked example, £55,000: income tax £1,648.00 more, NI −£3.00, total £1,645.00.
| Tax year | Salary | Allowance if indexed | 40% from, if indexed | Extra tax | Extra NI | Extra total |
|---|---|---|---|---|---|---|
| 2026-27 | £55,000 | £16,080 | £64,480 | £1,648.00 | −£3.00 | £1,645.00 |
| 2027-28 | £56,650 | £16,650 | £66,750 | £2,092.00 | −£56.40 | £2,035.60 |
| 2028-29 | £58,350 | £16,990 | £68,190 | £2,500.00 | −£131.20 | £2,368.80 |
| 2029-30 | £60,101 | £17,330 | £69,630 | £2,918.20 | −£209.06 | £2,709.14 |
| 2030-31 | £61,904 | £17,680 | £71,080 | £3,348.80 | −£289.24 | £3,059.56 |
| Total to 5 April 2031 | £11,818.10 | |||||
Your April 2027 payslip
Per month now and from April, and in hours of work
- This tax year: £137.08 a month more than with indexed thresholds (£1,645.00 ÷ 12).
- From your April 2027 payslip, on a salary of £56,650: £169.63 a month more (£2,035.60 over 2027-28).
- In time: 58.3 hours of your work this year, or about 7.8 working days at 37.5 hours a week.
Per month = the year's figure ÷ 12. Your payslip works pay period by pay period, so it can differ by a few pence.
Why NI can go down above £50,270
The upper limit is frozen too
Employee National Insurance is 8% between £12,570 and the Upper Earnings Limit, and 2% above it. The limit is frozen at £50,270. Indexed, it would be £64,480 this year. So the frozen upper limit charges 2% instead of 8% on a slice of your pay, and your NI comes out a little lower than in the indexed world.
It never makes up for the income tax: on £55,000 NI is £3.00 lower while income tax is £1,648.00 higher. On £120,000, £571.80 lower against £3,544.00 higher. We show the saving as a negative number, for example −£3.00.
Budget checklist, 28 October 2026
What we re-check on the day, and what's confirmed
Budget on Wed 28 Oct. We'll re-check every number here on the day. Numbers last checked against official sources on .
- Not yet announcedPersonal Allowance £12,570 and basic rate limit £37,700 for 2027-28 to 2030-31, and the 5 April 2031 end date
- Not yet announcedNI Primary Threshold and Upper Earnings Limit still aligned with them, and the 8% / 2% employee rates
- Not yet announcedIncome tax rates 20% / 40% / 45%, the £100,000 taper and the £125,140 limit
- Not yet announcedAny new rule for raising thresholds with prices
If the Budget changes thresholds or rates for 2027-28 onwards, the five-year total changes the same day. This year's number is set by law already.
Scotland
Not covered yet
Scotland sets its own income tax bands and rates, so this version covers England, Wales and Northern Ireland only, and shows no numbers for Scotland. See Scottish income tax on gov.uk.
Questions
Until when, the £982.80, NI, the Budget, Scotland, hours
Why is the Personal Allowance frozen and until when?
The Personal Allowance (£12,570) and the basic rate limit (£37,700, so 40% starts at £50,270) have been fixed since 6 April 2021. The law normally raises them with September inflation each April, but Parliament can override that, and Finance Acts in 2021 and 2023 and the Budget of 26 November 2025 kept them fixed until 5 April 2031. The National Insurance thresholds are kept in line with them, so they are frozen too.
What would the allowance be if it had risen with inflation?
£16,080 in 2026-27. We apply the rule in the Income Tax Act 2007 (section 57) every April since 2022: add September's CPI rate (3.1%, 10.1%, 6.7%, 1.7%, 3.8%) and round the increase up to the next £10. The same rule for the basic rate limit (section 21, rounded up to £100) gives £48,400, so the 40% band would start at £64,480 instead of £50,270.
Why does everyone between £16,080 and £50,270 pay the same £982.80 extra?
Because on that stretch of pay the only difference between the two worlds is the £3,510 of allowance that never arrived (£16,080 minus £12,570). You pay 20% income tax and 8% National Insurance on it: £3,510 × 28% = £982.80. It is a fact, not a rounding quirk. Above £50,270 the cost climbs, because more of your pay is taxed at 40%.
Why does my National Insurance go down above £50,270?
Employee NI is 8% up to the Upper Earnings Limit and 2% above it. The limit is frozen at £50,270; had it risen with prices it would be £64,480. So the frozen limit charges 2% instead of 8% on a slice of your pay. On £55,000 that slice saves you £3.00 of NI, against £1,648.00 more income tax. On £60,000 it is £2,648.00 more tax and £303.00 less NI. The calculator shows NI savings with a minus sign.
Will the 28 October Budget change this?
It might. The thresholds are already law until 5 April 2031, but a Budget can extend the freeze, change rates or change how NI lines up. We will check every number on this page against the Budget documents on Wednesday 28 October 2026 and say so at the top of the page. Until then, everything here uses the rules published before the Budget.
Does this work for Scotland?
No. Scotland sets its own income tax bands and rates, so this version covers England, Wales and Northern Ireland only. National Insurance is UK-wide, but showing half the picture would mislead, so the calculator shows no numbers when you pick Scotland. See gov.uk/scottish-income-tax for the Scottish bands.
How do you turn the cost into hours of work?
We divide the extra tax and NI by your hourly pay before tax: salary ÷ (hours a week × 52). On £55,000 and 37.5 hours a week that's about £28.21 an hour, so £1,645 is 58 hours, or about 7.8 working days. Change the hours under the calculator if yours differ.
Sources and fine print
gov.uk, ONS, legislation.gov.uk, Bank of England
Income Tax rates and Personal Allowances
PA £12,570, bands, the £100,000 taper.
GOV.UK (opens in a new tab) · Checked
OfficialRates and thresholds for employers 2026 to 2027
NI: PT £12,570, UEL £50,270, 8% and 2%.
HMRC, GOV.UK (opens in a new tab) · Checked
OfficialMaintaining the thresholds until 5 April 2031
Budget 2025 policy paper; NI thresholds stay aligned.
HMRC, GOV.UK (opens in a new tab) · Checked
OfficialIncome Tax Act 2007, section 57 (allowance indexation)
legislation.gov.uk (opens in a new tab) · Checked
LawIncome Tax Act 2007, section 21 (basic rate limit indexation)
legislation.gov.uk (opens in a new tab) · Checked
LawBudget 2021 overview of tax legislation and rates
2021-22 uprating with September 2020 CPI.
HM Treasury, GOV.UK (opens in a new tab) · Checked
OfficialCPI annual rate, September 2020 to 2026 (D7G7)
0.5, 3.1, 10.1, 6.7, 1.7, 3.8, 3.5%. Release of 21 October 2026.
Office for National Statistics (opens in a new tab) · Checked
OfficialInflation target of 2%
Used for September 2027 to 2029: an assumption.
Bank of England (opens in a new tab) · Checked
AssumptionBudget date: 28 October 2026
Chancellor's letter to the Treasury Committee.
HM Treasury, GOV.UK (opens in a new tab) · Checked
Official
An estimate, not tax advice. Assumes employment income only, standard tax code 1257L, no pension contributions, student loan, benefits in kind, Marriage Allowance or Blind Person's Allowance. NI is annualised (your payslip rounds each pay period). The 'indexed' world is a counterfactual using the rule in the Income Tax Act 2007 and ONS September CPI; future inflation (Sept 2027–2029) is assumed at the Bank of England's 2% target.
The wall label is a nod to Olafur Eliasson's Ice Watch (2014): blocks of ice left to melt in a public square. This one was installed on 6 April 2021 and is scheduled to thaw on 6 April 2031.
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