The new tax year starts 6th April 2024 and will end 5th April 2025 and here are some key changes for this upcoming year:
National Insurance (NI) Cuts:
- The main rate of employee National Insurance will be reduced by 2p, from 10% to 8%, starting from April 6, 2024.
- For self-employed individuals, there will be an additional 2p cut in the main rate of self-employed National Insurance, on top of the previously announced 1p cut. This means that the main rate of Class 4 NICs for the self-employed will be reduced from 9% to 6%.
- Combined with the abolition of the requirement to pay Class 2 NICs, this will result in an average self-employed person earning £28,000 saving £650 per year.
The income tax rates and thresholds are as follows:
England and Northern Ireland
The standard employee personal allowance for the 2024 to 2025 tax year is:
- £242 per week
- £1,048 per month
- £12,570 per year
| PAYE tax rate | Rate of tax | Annual earnings the rate applies to (above the PAYE threshold) |
| Basic tax rate | 20% | Up to £37,700 |
| Higher tax rate | 40% | From £37,701 to £125,140 |
| Additional tax rate | 45% | Above £125,140 |
Scotland
The standard employee personal allowance for the 2024 to 2025 tax year is:
- £242 per week
- £1,048 per month
- £12,570 per year
| PAYE tax rate | Rate of tax | Annual earnings the rate applies to (above the PAYE threshold) |
| Starter tax rate | 19% | Up to £2,306 |
| Basic tax rate | 20% | From £2,307 to £13,991 |
| Intermediate tax rate | 21% | From £13,992 to £31,092 |
| Higher tax rate | 42% | From £31,093 to £62,430 |
| Advanced tax rate | 45% | From £62,431 to £125,140 |
| Top tax rate | 48% | Above £125,140 |
Wales
The standard employee personal allowance for the 2024 to 2025 tax year is:
- £242 per week
- £1,048 per month
- £12,570 per year
| PAYE tax rate | Rate of tax | Annual earnings the rate applies to (above the PAYE threshold) |
| Basic tax rate | 20% | Up to £37,700 |
| Higher tax rate | 40% | From £37,701 to £125,140 |
| Additional tax rate | 45% | Above £125,140 |
National Minimum Wage
The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law. Find out more about who can get the minimum wage.
Use the National Minimum Wage calculator to check if you’re paying a worker the National Minimum Wage or if you owe them payments from past years.
These rates apply from 1 April 2024.
| Category of worker | Hourly rate |
| Aged 21 and above (national living wage rate) | £11.44 |
| Aged 18 to 20 inclusive | £8.60 |
| Aged under 18 (but above compulsory school leaving age) | £6.40 |
| Apprentices aged under 19 | £6.40 |
| Apprentices aged 19 and over, but in the first year of their apprenticeship | £6.40 |
Statutory Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay
These rates apply from 7 April 2024.
| Type of payment or recovery | 2024 to 2025 rate |
| Statutory Maternity Pay — weekly rate for first 6 weeks | 90% of the employee’s average weekly earnings |
| Statutory Maternity Pay — weekly rate for remaining weeks | £184.03 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Paternity Pay (SPP) — weekly rate | £184.03 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Adoption Pay (SAP) — weekly rate for first 6 weeks | 90% of the employee’s average weekly earnings |
| SAP — weekly rate for remaining weeks | £184.03 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Shared Parental Pay (ShPP) — weekly rate | £184.03 or 90% of the employee’s average weekly earnings, whichever is lower |
| Statutory Parental Bereavement Pay (SPBP) — weekly rate | £184.03 or 90% of the employee’s average weekly earnings, whichever is lower |
| SMP, SPP, ShPP, SAP or SPBP — proportion of your payments an employer can recover from HMRC | 92% if your total Class 1 National Insurance (both employee and employer contributions) is above £45,000 for the previous tax year 103% if your total Class 1 National Insurance for the previous tax year is £45,000 or lower |
Statutory Sick Pay (SSP)
The same weekly Statutory Sick Pay rate applies to all employees if they qualify and is paid on the 4th working day of continual sickness. It is paid at a daily rate depending on how many days they normally work per week. The weekly rate is £116.75, and the daily rates are as follows:
| Unrounded daily rates | Number of qualifying days in week |
| £16.6785 | 7 |
| £19.4583 | 6 |
| £23.35 | 5 |
| £29.1875 | 4 |
| £38.9166 | 3 |
| £58.375 | 2 |
| £116.75 | 1 |