These are the main tax rates and allowances updated following the Spring Budget on 6 March 2024 for the 2024/25 Tax Year period.
Personal Tax Allowances and Reliefs
The standard employee personal allowance for the 2023 to 2024 tax year is:
- £242 per week
- £1,048 per month
- £12,570 per year
Income Tax Rates
| Income Tax Rates and Bands | Taxable Income | Rate % |
|---|---|---|
2023/24 + 2024/25 | ||
Personal Allowance | Up to £12,570 | 0% |
Basic Tax Rate | £12,571-£50,270 | 20% |
Higher Tax Rate | £50,270-£125,410 | 40% |
Additional Tax Rate | Above £125,140 | 45% |
NIC: Class 1 Primary Monthly Thresholds
| Employee (Primary) | 2023/24 | 2024/25 |
|---|---|---|
Lower Earning Limit (LEL) | £533 | £533 |
Primary Threshold (PT) | £1,048 | £1,048 |
Upper Earnings Limit (UEL) | £4,189 | £4,189 |
NIC: Class 1 Primary Rates
| Employee (Primary) | 2023/24 to 5th Jan 2024 | 2023/24 from 6th Jan 2024 | 2024/25 |
|---|---|---|---|
Up to Lower Earnings Limit | N/A | N/A | N/A |
From Lower Earnings Limit to Primary Threshold | 0% | 0% | 0% |
From Primary Threshold to Upper Earnings Limit | 12% | 10% | 8% |
Above Upper Earnings Limit | 2% | 2% | 2% |
NIC: Class 1 Secondary Monthly Thresholds
| Employer (Secondary) | 2023/24 | 2024/25 |
|---|---|---|
Secondary Threshold (ST) | £758 | £758 |
Upper Secondary Threshold for under 21s (UST) | £4,189 | £4,189 |
Apprentice Upper Secondary Threshold (AUST), for under 25s | £4,189 | £4,189 |
Veteran Upper Secondary Threshold (VUST) | £4,189 | £4,189 |
Investment Zone Upper Secondary Threshold (IZUST) | £2,083 | £2,083 |
Freeport Upper Secondary Threshold (FUST) | £2,083 | £2,083 |
NIC: Class 1 Secondary Rates
| Employer (Secondary) | 2023/24 | 2024/25 |
|---|---|---|
Up to: Secondary Threshold, Upper Secondary Threshold, Apprentice Upper Secondary Threshold, Freeport Upper Secondary Threshold, Investment Zone Upper Secondary Threshold and Veteran Upper Secondary Threshold | 0% | 0% |
Above: Secondary Threshold, Upper Secondary Threshold, Apprentice Upper Secondary Threshold, Freeport Upper Secondary Threshold, Investment Zone Upper Secondary Threshold and Veteran Upper Secondary Threshold | 13.8% | 13.8% |
Employment Allowance - Annual amount per company/group | £5,000 | £5,000 |
NIC: Class 2 Rates and Thresholds
| Tax Year | Flat Rate per week (note 1) | Share fishermen per week | Volunteer Development Workers per week | Small Profit Threshold (Note 2) | Lower Profit Threshold (Note 3) |
|---|---|---|---|---|---|
2023/24 | £3.45 | £4.10 | £6.15 | £6.75 | £12,570 |
2024/25 | £3.45 | £4.10 | £6.15 | £6.75 | N/A |
Notes:
- Self-employed traders with profits below the small profits threshold do not have to pay class 2 NIC, but they are not entitled to a NI credit. They can pay class 2 NIC voluntarily.
- For 2022/23 and 2023/24 self-employed individuals don’t pay class 2 NIC if their annual profits fall between the small profit threshold and the lower profits threshold, but they are given an NI credit for the year.
- From 2024/25 onwards there is no liability to class 2 NIC for self-employed traders with profits above the small profits threshold, but all self-employed traders with profits above the small profits threshold are entitled to an NI credit.
NIC : Class 3 Rates
| Tax Year | Weekly Rate £ |
|---|---|
2023/24 | £17.45 |
2024/25 | £17.45 |
NIC: Class 4 Rates and Thresholds
| Main Rate | Additional Rate | Lower Profits Limit | Upper Profits Limit | |
|---|---|---|---|---|
2023/24 | 9% | 2% | £12,570 | £50,270 |
2024/25 | 6% | 2% | £12,570 | £50,270 |
Other Allowances
| 2023/24 | 2024/25 | |
|---|---|---|
Personal Allowance | £12,570 | £12,570 |
Income Limit for Personal Allowance | £100,000 | £100,000 |
Blind Person's Allowance | £2,870 | £3,070 |
Rent-a-Room Relief | £7,500 | £7,500 |
Trading Income Allowance | £1000 | £1000 |
Property Income Allowance | £1000 | £1000 |
Personal Savings Allowance - Basic Tax Band | £1000 | £1000 |
Personal Savings Allowance - Higher Tax Band | £500 | £500 |
Personal Savings Allowance - Additional Rate | £0 | £0 |
Married Couple's Allowance (Maximum Amount) | £10,375 | £11,080 |
Married Couple's Allowance (Minimum Amount) | £4,010 | £4,280 |
Note on Married Couple’s Allowance – For 2024–25, the married couple’s allowance of £11,080 (2023–24: £10,375) may be available where a spouse/partner was born before 6 April 1935. It is reduced by £1 for every £2 that income exceeds £37,000 (2023–24: £34,600) but it cannot be reduced below £4,280 (2023–24: £4,010). Relief is equal to 10% of the amount of the allowance.
Note on The Personal Allowance – Goes down by £1 for every £2 of income above the £100,000 limit. It can go down to zero.
Note on Starting Rate for Savings – You may also get up to £5,000 of interest and not have to pay tax on it. This is your starting rate for savings. The more you earn from other income (for example your wages or pension), the less your starting rate for savings will be.
If your other income is £17,570 or more, you’re not eligible for the starting rate for savings if your other income is £17,570 or more. If your other income is less than £17,570 your starting rate for savings is a maximum of £5,000. Every £1 of other income above your Personal Allowance reduces your starting rate for savings by £1.
Pension Allowances
| 2023/24 | 2024/25 | |
|---|---|---|
Annual Allowance | £60,000 | £60,000 |
Annual Allowance is tapered when adjusted income including pension contributions exceeds: | £260,000 | £260,000 |
Net Income excluding pension contributions exceeds: | £200,000 | £200,000 |
Minimum Tapered Annual Allowance | £10,000 | £10,000 |
Money Purchase Annual Allowance | £10,000 | £10,000 |
Lifetime Allowance | Abolished | Abolished |
Corporation Tax Rates
| Year from 1st April | 2023/24 | 2024/25 |
|---|---|---|
Main Rate | 25% | 25% |
Small Profits Rate | 19% | 19% |
Small Profits Rate where profits don't exceed: | £50,000 | £50,000 |
Marginal Relief Lower Limit | £50,000 | £50,000 |
Marginal Relief Upper Limit | £250,000 | £250,000 |
Tax Rates for Dividend Income
| Dividends within: | 2023/24 | 2024/25 |
|---|---|---|
Basic Rate Band | 8.75% | 8.75% |
Dividend Allowance | £1000 | £500 |
Higher Rate Band | 33.75% | 33.75% |
Dividend Allowance | £1000 | £500 |
Additional Rate Band | 39.35% | 39.35% |
Dividend Allowance | £1000 | £500 |
Capital Gains Tax (CGT) Rates and Annual Exemptions
| Tax Year | Annual Exempt Amount | Tax Rate Paid by | |||
|---|---|---|---|---|---|
Individuals, Personal Representatives (PR) and Trusts for Disabled | General Trusts | Individuals within: | Trustees and PRs | ||
Basic Rate Band | Higher Tax Bands | ||||
£ | £ | % | % | % | |
2023/24 | £6000 | £3000 | 10% | 20% | 20% |
Residential Property & Carried Interest | 18% | 28% | 28% | ||
2024/25 | £3000 | £1,500 | 10% | 20% | 20% |
Residential Property | 18% | 24% | 24% | ||
Carried Interest | 18% | 28% | 28% |
| Effective Date | Registration Turnover | Registration Exception: Turnover Not Exceeding | Deregistration Turnover |
|---|---|---|---|
1st April 2017 to 31st March 2024 | £85,000 | £83,000 | £83,000 |
1st April 2024 | £90,000 | £88,000 | £88,000 |
| Age | Rate from 1st April 2023 | Rate from 1st April 2024 |
|---|---|---|
Workers Aged 23 and over (NLW) | £10.42 | - |
Workers aged 21 and over (NLW) | - | £11.44 |
21-22 Year Olds | £10.18 | £11.44 |
18-20 Year Olds | £7.49 | £8.60 |
16-17 Year Olds | £5.28 | £6.40 |
Apprentices under 19, or over 19 and in the first year of the apprenticeship | £5.28 | £6.40 |
Statutory Maternity Pay (SMP) is paid for up to 39 weeks.
You get:
- 90% of your average weekly earnings (before tax) for the first 6 weeks.
- £172.48 (to go up to £184.03 from the 1st April 2024), or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks.
SMP is pai in the same way as your wages (for example monthly or weekly), Tax and NI will be deducted.
Statutory Maternity, Adoption, Paternity, Shared Parental and Parental Bereavement Pay are all £172.48 p/w going to £184.03 from the 1st April 2024.
The Statutory Sick Pay will rise from 6th April 2024 from £109.40 to £116.75 a week up to 28weeks.
To qualify for Statutory Sick Pay (SSP) you must:
- be classed as an employee and have done some work for your employer
- earn an average of at least £123 per week
- have been ill for more than 3 days in a row (including non-working days)
Agency workers are entitled to Statutory Sick Pay.
Telling your Employer
You must usually tell your employer you’re unable to work before the deadline they set (or within 7 days if they have not set one).
You could lose some of your SSP if you do not tell your employer in time.
Exceptions
You will not qualify if you:
- have received the maximum amount of SSP (28 weeks)
- are getting Statutory Maternity Pay
You can still qualify if you started your job recently and you have not received 8 weeks’ pay yet. Ask your employer to find out more.
Linked periods of sickness
If you have regular periods of sickness, they may count as ‘linked’. To be linked, the periods must:
- last more than 3 days in a row
- be 8 weeks or less apart
You’re no longer eligible for SSP if you have a continuous series of linked periods that lasts more than 3 years.
Fit Notes and Asking for Proof
You must give your employer a fit note if you’re off work for more than 7 days in a row (including non-working days).
You can get a fit note (sometimes called a sick note) from the following healthcare professionals:
GP or hospital doctor
registered nurse
occupational therapist
pharmacist
physiotherapist
The note can be printed or digital.
Other proof of sickness
If your employer agrees, you can get a similar document from a physiotherapist, podiatrist or occupational therapist instead of a fit note. This is called an Allied Health Professional (AHP) Health and Work Report.
A physiotherapist or occupational therapist will give you either a fit note or an AHP Health and Work Report depending on your needs.
Limit on a Week's Pay for Redundancy Calculations
| Payments | From 6th April 2023 | From 6th April 2024 |
|---|---|---|
Limit on a week's pay for calculating redundancy and unfair dismissal basic award | £643 | £700 |
Maximum basic award for unfair dismissal and statutory redundancy payment (30 weeks' pay subject to the limit on a week's pay) | £19,290 | £21,000 |
Maximum compensatory award for unfair dismissal —subject to a maximum cap of a year's pay | £105,707 | £115,115 |
Emergency Tax Codes
The Emergency Tax Codes for both the 2023-24 Tax Year Period and 2024-25 Tax Year Period are the following:
If your tax code ends in ‘W1’ or ‘M1’ or ‘X’ you’re on an emergency tax code. For example:
- 1257L WI
- 1257L MI
- 1257L X
You may be put on an emergency tax code if HMRC does not get your income details in time after a change in circumstances such as:
- a new job
- working for an employer after being self-employed
- getting company benefits or the State Pension
Emergency tax codes are temporary. HMRC will usually update your tax code when you or your employer give them your correct details. If your change in circumstances means you have not paid the right amount of tax, you’ll stay on the emergency tax code until you’ve paid the correct tax for the year.
Updating your details
Your employer can help you update your tax code by sending details about your previous income or pension to HMRC.
If you’ve started a new job
Give your employer your P45 from your previous job. If you do not have a P45, your employer should ask you for the information they need instead.
If you’ve started working for an employer after being self-employed
Your employer should give you a ‘starter checklist’ – this is a form you can use to give them details about your previous employment.
If you’ve started getting company benefits or the State Pension
Check your tax code online to make sure it includes the State Pension or company benefit. If they’re not included, update your details in the tax code online service or by contacting HMRC.
The emergency tax code will stay in place until the end of the tax year. This means you’ll pay the right amount of tax for the current tax year. In the new tax year HMRC will put you on a regular tax code.
High Income Child Benefit Charge (HICBC)
| Period Child Benefit Received: | Lower Income Threshold | Upper Income Threshold |
|---|---|---|
From 7th January 2013 to 5th April 2024 | £50,000 | £60,000 |
From 6th April 2024 | £60,000 | £80,000 |
Travel - Mileage and Fuel Rate Allowances - Benefits
| From tax year 2011 to 2012 and Onwards | First 10, 000 business miles in the tax year | Each business mile over 10,000 in the tax year |
|---|---|---|
Cars and Vans | £0.45 | £0.25 |
Motor Cycles | £0.24 | £0.24 |
Bicycles | £0.20 | £0.20 |
Passenger payments — cars and vans
5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less than 5p or nothing at all.
Company Cars
The charge is based on the price of the car for tax purposes (normally the list price) and accessories multiplied by an appropriate percentage based on the level of CO2 emissions and the fuel the car uses. There is a ready-reckoner of appropriate percentages for petrol-powered cars and summaries of adjustments to those percentages for the 4 tax years from 2002 to 2006 and for tax years from 2006 to 2007 onwards.
Company Vans
The charges are:
| Tax Year | Amount |
|---|---|
2023 to 2024 | £3,960 |
2022 to 2023 | £3,600 |
2021 to 2022 | £3,500 |
2020 to 2021 | £3,490 |
2019 to 2020 | £3,430 |
Fuel Charges - Company Cars and Vans
Cars — to calculate the benefit charge on free or subsidised fuel for private use, the appropriate percentage used in calculating car benefit is applied to a set figure known as the car fuel benefit multiplier.
Car Fuel Benefit Multiplier
| Tax Year | Amount |
|---|---|
2023 to 2024 | £27,800 |
2022 to 2023 | £25,300 |
2021 to 2022 | £24,600 |
2020 to 2021 | £24,500 |
2019 to 2020 | £24,100 |
Van Fuel Rates
| Tax Year | Amount |
|---|---|
2023 to 2024 | £757.00 |
2022 to 2023 | £688.00 |
2021 to 2022 | £669.00 |
2020 to 2021 | £666.00 |
2019 to 2020 | £655.00 |
Company Car and Car Fuel Calculator
When you can use the mileage rates
These rates only apply to employees using a company car.
Use the rates when you either:
- reimburse employees for business travel in their company cars
- need employees to repay the cost of fuel used for private travel
You must not use these rates in any other circumstances.
Reimburse employees for company car business travel
If the mileage rate you pay is no higher than the advisory fuel rates for the engine size and fuel type of the company car, there will be no taxable profit and no Class 1A National Insurance to pay.
If your cars are more fuel efficient, or if the cost of business travel is higher than the guideline rates, you can use your own rates to reflect your situation.
If you pay rates that are higher than the advisory rates but cannot show that the fuel cost per mile is higher, there will be no fuel benefit charge if the mileage payments are only for business travel. Instead, you’ll have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes.
Employees to repay the cost of fuel used for private travel
There will be no fuel benefit charge if you correctly record all private travel mileage and use the correct rate (or higher), to work out how much your employees must repay you for fuel used for private travel.
You will not need to use the advisory rates where you can show that employees cover the full cost of private fuel by repaying at a lower mileage rate.
Petrol
| Engine Size (CC) | Mean MPG | Fuel Price (per litre) | Fuel price (per gallon) | Rate per mile | Advisory Fuel Rate |
|---|---|---|---|---|---|
Up to 1400cc | 49.5 | 140.6 pence | 639.0 pence | 12.9 pence | 13 pence |
1401 to 2000cc | 42.1 | 140.6 pence | 639.0 pence | 15.2 pence | 15 pence |
Over 2000cc | 26.7 | 140.6 pence | 639.0 pence | 24.0 pence | 24 pence |
Diesel
| Engine Size (CC) | Mean MPG | Fuel Price (per litre) | Fuel price (per gallon) | Rate per mile | Advisory Fuel Rate |
|---|---|---|---|---|---|
Up to 1600cc | 56.7 | 149.4 pence | 679.0 pence | 12.0 pence | 12 pence |
1601 to 2000cc | 48.0 | 149.4 pence | 679.0 pence | 14.2 pence | 14 pence |
Over 2000cc | 36.3 | 149.4 pence | 679.0 pence | 18.7 pence | 19 pence |
LPG (Liquid Petroleum Gas)
| Engine Size (CC) | Mean MPG | Fuel Price (per litre) | Fuel price (per gallon) | Rate per mile | Advisory Fuel Rate |
|---|---|---|---|---|---|
Up to 1400cc | 39.6 | 96.5 pence | 438.7 pence | 11.1 pence | 11 pence |
1401 to 2000cc | 33.7 | 96.5 pence | 438.7 pence | 13 pence | 13 pence |
Over 2000cc | 21.3 | 96.5 pence | 438.7 pence | 20.6 pence | 21 pence |
Electric
From 1 March 2024, the advisory electric rate for fully electric cars will be 9 pence per mile.
Hybrid cars are treated as either petrol or diesel cars for advisory fuel rates.
The advisory fuel rates for petrol, LPG and diesel cars are shown in these tables.
You can use the previous rates for up to 1 month from the date any new rates apply.
From 1st March 2024 - Rates per Mile
| Engine Size | Petrol Rate per Mile | LPG Rate per Mile |
|---|---|---|
1400cc or less | £0.13 | £0.11 |
1401 to 2000cc | £0.15 | £0.13 |
Over 2000cc | £0.24 | £0.21 |
| Engine Size | Diesel Rate per Mile |
|---|---|
1600cc or less | £0.12 |
1601 to 2000cc | £0.14 |
Over 2000cc | £0.19 |
| Electric - Rate per Mile |
|---|
£0.09 |
From 1st December 2023 to 29 February 2024 - Rates per Mile
| Engine Size | Petrol Rate per Mile | LPG Rate per Mile |
|---|---|---|
1400cc or less | £0.14 | £0.10 |
1401 to 2000cc | £0.16 | £0.12 |
Over 2000cc | £0.26 | £0.18 |
| Engine Size | Diesel Rate per Mile |
|---|---|
1600cc or less | £0.13 |
1601 to 2000cc | £0.15 |
Over 2000cc | £0.20 |
| Electric - Rate per Mile |
|---|
£0.09 |
