Legislation for the 2024/2025 tax year
Summary
Description
This article explains what the changes are happening in the new tax year.
Resolution
Table of Contents
National minimum/living wage rates
The following rates are effective from 1 April 2024.
| Age | Hourly Rate (£) |
| 21 and older | 11.44 |
| 18 - 20 | 8.60 |
| 16 - 17 | 6.40 |
| Apprenticeship | Paying apprentices the correct national minimum wage > |
PAYE
Tax codes
The emergency tax code for the 2024/25 tax year remains at 1257L, and there are no automatic uplifts in tax codes. To find out more, read our article Update an employees' tax code.
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 Insurance
Earnings 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 Rates
Visit our handy guide to view all class 1 National Insurance rates for 2024/2025 tax year.
NOTE: The Spring Budget 2024 changed the main Employee NI rate from 10% down to 8%. This is reflected in the table below.
| 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 Threshold
The pro-rated Primary Threshold for the Director annual NICs calculation is £12,570.
Class 1A Rates
For termination payments the Class 1A rate is 13.8%.
Statutory payments
The Statutory payments rates are changing from 6 April 2024.
Statutory sick pay
Employees on weekly earnings greater than or equal to the Lower Earnings Limit have entitlement 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 |
|---|---|---|---|---|---|---|---|---|
| £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 | ||
| £29.1875 | 4 | £29.19 | £58.38 | £87.57 | £116.75 | |||
| £38.9166 | 3 | £38.92 | £77.84 | £116.75 | ||||
| £58.3750 | 2 | £58.38 | £116.75 | |||||
| £116.750 | 1 | £116.75 |
Parental pay and leave
The rates below come into effect from the first Sunday in April.
NOTE: For babies born from 6th April, Maternity Pay can be applied to both male and female employees.
Paternity pay can be taken up to 52 weeks after the birth or placement of a child.
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 |
|---|---|---|---|---|---|
| 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 enrolment
Auto 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 rates
The minimum Employer contribution remains at 3%.
The total minimum contribution remains at 8%.
Student loans
When 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 % |
|---|---|---|---|---|
| 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 loans
Type | Weekly £ | Monthly £ | Annual £ | Rate % |
|---|---|---|---|---|
| Standard | 403.84 | 1,750.00 | 21,000.00 | 6.00 |
Employment allowance
For 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. To find out more, read our article Small Employers Relief.
Apprenticeship Levy
The Apprenticeship Levy Allowance is set to £15,000.
The Apprenticeship Levy Rate is set to 0.5%.
Attachment of earnings orders
Where 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 bands
The following earnings tiers and contribution rates apply from 1 April 2024.
| Tier | Pensionable pay from | Pensionable pay to | Employee contribution rate | Employer contribution rate (non-medical school) | Employer contribution rate (medical school) |
| 1 | £0.00 | £13,246.99 | 5.2% | 14.3%* | 14.76%* |
| 2 | £13,247.00 | £25,146.99 | 6.5% | 14.3%* | 14.76%* |
| 3 | £25,147.00 | £30,638.99 | 8.3% | 14.3%* | 14.76%* |
| 4 | £30,639.00 | £45,996.99 | 9.8% | 14.3%* | 14.76%* |
| 5 | £45,997.00 | £58,972.99 | 10.7% | 14.3%* | 14.76%* |
| 6 | £58,973.00 | And above | 12.5% | 14.3%* | 14.76%* |
*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. This tops 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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