The tax changes that matter for doctors in 2026/2027

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By Dr Ed Cantelo

With most thresholds frozen and fiscal drag still an issue, Medics’ Money looks at what has changed – and what hasn't – as the new financial year gets underway.

With a lot of changes already made in Labour’s first Budget and many of those postponed until April 2027 or beyond, not much will look different from the start of this financial year, which began on 6 April.

That includes almost all thresholds and tax rates. Most notably perhaps, personal allowance, or the amount of income you do not have to pay tax on, remains at £12,570. The threshold at which that allowance is withdrawn is unchanged too, resulting in the infamous marginal tax trap for people earning between £100,000 and £125,140.

As the new tax year begins, though, it’s worth noting that allowances, such as the £20,000 ISA allowance, are refreshed. Dr Ed Cantelo reviews the changes that will affect doctors – for better and worse.