Spring Budget 2024The Spring Budget announcement included a reduction of the main rate of employee National Insurance for the 2024/25 tax year. You must update your NI rates in Sage 50 Payroll v30 before you process a pay run in the 2024/25 tax year. How to apply the Spring Budget 2024 NI changes >
National minimum/living wage ratesThe following rates are effective from 1 April 2024.
PAYETax codesThe emergency tax code for the 2024/25 tax year remains at 1257L, and there are no automatic uplifts in tax codes. If you'd like to find out more, visit our update your employees' tax codes guide. The tables below show the bandwidths for the rest of the UK, Scotland and Wales. Rest of UK Bandwidths & Rates| From (£) | To (£) | Rate (%) | Band | | 0.01 | 37,700.00 | 20.00 | Basic rate | | 37,700.01 | 125,140.00 | 40.00 | Higher rate | | 125,140.01 | excess | 45.00 | Additional rate |
Scottish Bandwidths & Rates| From (£) | To (£) | Rate (%) | Band | | 0.01 | 2,306.00 | 19.00 | Starter rate | | 2,306.01 | 13,991.00 | 20.00 | Basic rate | | 13,991.01 | 31,092.00 | 21.00 | Intermediate rate | | 31,092.01 | 62,430.00 | 42.00 | Higher rate | | 62,430.01 | 125,140.00 | 45.00 | Advanced rate | | 125,140.01 | excess | 48.00 | Top rate |
Welsh Bandwidths & Rates| From (£) | To (£) | Rate (%) | Band | | 0.01 | 37,700.00 | 20.00 | Basic rate | | 37,700.01 | 125,140.00 | 40.00 | Higher rate | | 125,140.01 | excess | 45.00 | Additional rate |
Tax relief for childcare
| Basic Rate (£) | High Rate (£) | Higher Rate (£) | | Weekly | 55.00 | 28.00 | 25.00 | | Monthly | 243.00 | 124.00 | 110.00 | | Annually | 2,915.00 | 1,484.00 | 1,325.00 |
National InsuranceEarnings bands
| Weekly (£) | Monthly (£) | Yearly (£) | | Lower Earnings Limit (LEL) | 123.00 | 533.00 | 6,396.00 | | Primary Threshold (PT) | 242.00 | 1,048.00 | 12,570.00 | | Secondary Threshold (ST) | 175.00 | 758.00 | 9,100.00 | | Freeport/Investment Zone Upper Secondary Threshold (FUST) | 481.00 | 2,083.00 | 25,000.00 | | Upper Earnings Limit (UEL) | 967.00 | 4,189.00 | 50,270.00 | | Upper Secondary Threshold (UST) | 967.00 | 4,189.00 | 50,270.00 | | Apprentice Upper Secondary Threshold (AUST) | 967.00 | 4,189.00 | 50,270.00 | | Veterans Upper Secondary Threshold (VUST) | 967.00 | 4,189.00 | 50,270.00 |
NI Category A RatesFrom 6 April 2024 there are four new NI categories for Investment Zones. If you'd like to see the rates for all NI categories, visit our class 1 National Insurance rates for 2024/2025 tax year guide.  NOTE: The Spring Budget 2024 changed the main Employee NI rate from 10% down to 8%. This is reflected in the table below. You must update your NI rates in Sage 50 Payroll v30 before you process a 2024/25 payroll. Find out how to apply the Spring Budget 2024 changes >
| Employee Rate (%) | Employer Rate (%) | Director rate (%) | | LEL up to ST | 0.00 | 0.00 | 0.0 | | ST to PT | 0.00 | 13.80 | 0.0 | | PT to FUST | 8.00 | 13.80 | 8.00 | | FUST to UEL/UST/AUST/VUST | 8.00 | 13.80 | 8.00 | | Excess of UEL/UST/AUST/VUST | 2.00 | 13.80 | 2.00 |
Directors Annual Primary ThresholdThe pro-rated Primary Threshold for the Director annual NICs calculation is £12,570. Class 1A RatesFor termination payments the Class 1A rate is 13.8%.
Statutory paymentsThe Statutory payments rates are changing from 6 April 2024. Statutory sick payEmployees on weekly earnings greater than or equal to the Lower Earnings Limit are entitled to a statutory weekly rate of £116.75 from 6 April 2024. New statutory sick pay rates: | Unrounded daily rates | Number of working days in week | 1 day to pay | 2 days to pay | 3 days to pay | 4 days to pay | 5 days to pay | 6 days to pay | 7 days to pay |
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| £16.6785 | 7 | £16.68 | £33.36 | £50.04 | £66.72 | £83.40 | £100.08 | £116.75 | | £19.4583 | 6 | £19.46 | £38.92 | £58.38 | £77.84 | £97.30 | £116.75 |
| | £23.3500 | 5 | £23.35 | £46.70 | £70.05 | £93.40 | £116.75 |
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| | £29.1875 | 4 | £29.19 | £58.38 | £87.57 | £116.75 |
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| | £38.9166 | 3 | £38.92 | £77.84 | £116.75 |
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| | £58.3750 | 2 | £58.38 | £116.75 |
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| | £116.750 | 1 | £116.75 |
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Parental pay and leaveThe rates below come into effect from the first Sunday in April. New Parental pay and leave rates: Payment | Higher rate % | The standard rate is the lesser of: £ | or, % | Weeks at higher rate | Weeks at Standard rate |
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| Statutory Maternity Pay | 90.00 | 184.03 | 90.00 | 6 | 33 | | Statutory Adoption Pay | 90.00 | 184.03 | 90.00 | 6 | 33 | | Statutory Paternity Pay | N/A | 184.03 | 90.00 | N/A | 2 | | Shared Parental Pay | N/A | 184.03 | 90.00 | N/A | 37 | | Parental Bereavement | N/A | 184.03 | 90.00 | N/A | 2 |
Automatic enrolmentAuto enrolment thresholds are unchanged for the 2024/25 tax year. | Pay reference period | Lower level of qualifying earnings | Earnings trigger for automatic enrolment | Qualifying Earnings upper limit | | 1 Week | £120.00 | £192.00 | £967.00 | | Fortnight | £240.00 | £384.00 | £1,934.00 | | 4 weeks | £480.00 | £768.00 | £3,867.00 | | 1 month | £520.00 | £833.00 | £4,189.00 | | Annual | £6,240.00 | £10,000.00 | £50,270.00 |
Contribution ratesThe minimum Employer contribution remains at 3%. The total minimum contribution remains at 8%.
Student loansWhen you set up a student loan deduction for an employee, you must specify whether they're on Plan 1, Plan 2 or Plan 4. Type | Weekly £ | Monthly £ | Annual £ | Rate % |
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| Plan Type 1 | 480.57 | 2,082.50 | 24,990.00 | 9.00 | | Plan Type 2 | 524.90 | 2,274.58 | 27,295.00 | 9.00 | | Plan Type 4 | 603.75 | 2,616.25 | 31,395.00 | 9.00 |
Postgraduate loansType | Weekly £ | Monthly £ | Annual £ | Rate % |
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| Standard | 403.84 | 1,750.00 | 21,000.00 | 6.00 |
Employment allowanceFor the 2024/25 tax year, Employment allowance is £5,000.
Small Employers Relief (SER)There's no change to SER rates for the 2024/2025 tax year. If you'd like to find out more about SER, visit our what is Small Employers Relief guide.
Apprenticeship LevyThe Apprenticeship Levy Allowance is set to £15,000. The Apprenticeship Levy Rate is set to 0.5%.
Attachment of earnings ordersWhere attachment of earnings orders use rates to calculate deductions, your software includes these rates and applies them automatically. There are no changes to thresholds or rates for the 2024/2025 tax year.
NHS Pensions bandsThe following earnings tiers and contribution rates apply from 1 April 2024. The Government have announced that the new NHS pension thresholds will be increased in line with Consumer Price Index (CPI). The thresholds below are updated, and are included in Sage 50 Payroll v30. | Tier | Pensionable pay from | Pensionable pay to | Employee contribution rate | Employer contribution rate (non-medical school) | Employer contribution rate (medical school) | | 1 | £0.00 | £13,259.99 | 5.2% | 14.38%* | 14.84%* | | 2 | £13,260.00 | £26,831.99 | 6.5% | 14.38%* | 14.84%* | | 3 | £26,832.00 | £32,691.99 | 8.3% | 14.38%* | 14.84%* | | 4 | £32,692.00 | £49,078.99 | 9.8% | 14.38%* | 14.84%* | | 5 | £49,079.00 | £62,924.99 | 10.7% | 14.38%* | 14.84%* | | 6 | £62,925.00 | And above | 12.5% | 14.38%* | 14.84%* |
*The actual Employer contribution rate is 23.7%, but the NHS Business Service Authority will only collect 14.3% from employers or 14.76% from medical schools. They also charge a 0.08% admin charge, which is included in the values above. Sage 50 Payroll v30 includes this admin charge in the Employer contribution rates. This is then topped up by 9.4% for employers or 8.94% for medical schools by NHS England and the Department of Health and Social Care.
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