What's New for Locum GPs in 2025/26 — Tax Year Briefing
Frozen thresholds, Child Benefit rate uplift, MTD going live in April 2026, and Scotland's marginal rate changes. Everything a locum GP needs to know about the current tax year.
The 2025/26 tax year (6 April 2025 – 5 April 2026) brings a relatively quiet set of changes at the UK level — but several details matter specifically for locum GPs. Here is a concise briefing.
Thresholds: Frozen Again
Income tax thresholds remain frozen for 2025/26 — the fourth consecutive year of the freeze that started in 2022/23. This is a stealth tax increase: as incomes rise with inflation, more earnings are pushed into higher bands.
| Threshold | 2025/26 |
|---|---|
| Personal Allowance | £12,570 (unchanged) |
| Basic rate band upper limit | £50,270 (unchanged) |
| Higher rate band upper limit | £125,140 (unchanged) |
| Personal Allowance taper starts | £100,000 (unchanged) |
What this means for locums: A GP who earned £65,000 in 2022/23 now pays more income tax on the same real-terms income, because the £50,270 basic/higher boundary has not moved with inflation. The effective tax burden has risen even without a rate change.
National Insurance thresholds are also frozen. Class 4 NI rates remain at 6% (£12,570–£50,270) and 2% (above £50,270) — the cut introduced from April 2024 is unchanged.
Child Benefit: Rate Uplift
Child Benefit rates increased from April 2025:
| 2025/26 | Weekly | Annual |
|---|---|---|
| Eldest/only child | £26.05 | £1,354.60 |
| Each additional child | £17.25 | £897.00 |
The HICBC thresholds were also adjusted in April 2024 (the change that moved the charge start from £50,000 to £60,000, with 100% clawback at £80,000) and those updated thresholds continue in 2025/26.
If your adjusted net income is between £60,000 and £80,000 and you or your partner receive Child Benefit, the High Income Child Benefit Charge applies. Pension contributions remain the most effective lever for reducing it. See the HICBC guide →
Making Tax Digital for Income Tax: April 2026 Deadline
The most significant change on the immediate horizon is Making Tax Digital for Income Tax Self Assessment (MTD ITSA), which comes into force on 6 April 2026 for self-employed individuals (and landlords) with income over £50,000.
What changes:
- You will need MTD-compatible software (accounting apps such as FreeAgent, QuickBooks, Xero, or HMRC-approved alternatives)
- You will submit quarterly digital updates to HMRC (not full returns — just summarised income and expenses)
- The annual Self Assessment return is replaced by a final declaration each January
If your income is £30,000–£50,000, your start date is April 2027.
Action now: If you haven’t done so, start keeping digital records and evaluate MTD-compatible software before April 2026. Many locum accountants now offer MTD-ready packages. Read the full MTD guide →
Scotland: Marginal Rate Changes
Scotland’s income tax rates diverged further from the rest of the UK in 2024/25 and those rates carry forward into 2025/26:
| Band | Rate | Range |
|---|---|---|
| Starter | 19% | £12,571–£14,921 |
| Basic | 20% | £14,922–£26,270 |
| Intermediate | 21% | £26,271–£43,662 |
| Higher | 42% | £43,663–£75,000 |
| Advanced | 45% | £75,001–£125,140 |
| Top | 48% | Above £125,140 |
The Scottish higher rate of 42% (versus 40% in the rest of the UK) and the additional advanced rate band create a more complex picture for Scottish locum GPs. Scottish GPs with income around £43,663–£75,000 face a 42% marginal rate — two percentage points higher than their English counterparts.
Use the Scotland option in the calculator to estimate your take-home using Scottish rates.
Self Assessment: No Changes to Filing Deadlines
Core Self Assessment deadlines remain unchanged:
- 31 January 2026: Online return + balancing payment + first Payment on Account for 2025/26
- 31 July 2026: Second Payment on Account for 2025/26
- 5 October 2025: Registration deadline for new self-employed locums who started in 2024/25
Dividend Allowance: Reduced to £500
The dividend allowance was cut from £1,000 to £500 from April 2024, and remains at £500 for 2025/26. Locum GPs operating through a Ltd company and drawing dividends are affected — the first £500 of dividends remain tax-free, but anything above is taxed at 8.75% (basic rate), 33.75% (higher rate), or 39.35% (additional rate).
This makes the Ltd company structure slightly less advantageous than in earlier years, though it can still offer material savings for GPs with income in the £50,000–£80,000 range. Compare sole trader vs Ltd →
Summary
| Change | Detail |
|---|---|
| Income tax thresholds | Frozen — no change from 2024/25 |
| Class 4 NI | 6%/2% — unchanged |
| Child Benefit rates | Increased from April 2025 |
| HICBC thresholds | £60k–£80k (no change from 2024/25 update) |
| MTD ITSA | Mandatory from April 2026 for income >£50k |
| Scotland higher rate | 42% — unchanged from 2024/25 |
| Dividend allowance | £500 — unchanged from 2024/25 cut |
This article is for general information. For advice specific to your circumstances, speak with a locum-specialist accountant.