United Kingdom payroll guide · 2026/27
UK PAYE and National Insurance 2026/27
Understand the standard 2026/27 UK PAYE Income Tax and employee Class 1 National Insurance model, including Scotland and common exclusions.
Published 2026-10-05 · reviewed 2026-10-05 · next review when the underlying official profile changes
Direct answer
PAYE Income Tax and employee National Insurance are separate deductions. The standard profile applies the Personal Allowance and the appropriate UK or Scottish income-tax bands, then calculates employee Class 1 Category A National Insurance separately.
How PAYE and NI interact
Income Tax uses taxable income after the Personal Allowance, including its taper above the documented threshold. Scotland has separate earned-income bands; National Insurance is not devolved in the same way.
The Formulexa annual model reconciles total deductions against annual gross pay. Actual payroll can differ because PAYE is operated per pay period and tax codes can include individual adjustments.
What changed for this release
The released profile is explicitly versioned for 6 April 2026 through 5 April 2027 and includes the published Scottish earned-income bands and standard employee NI thresholds. Student-loan, pension and benefits cases require separate inputs and are not silently assumed.
Official sources
Apply the documented profile in the United Kingdom salary-after-tax calculator.