{"id":11679,"date":"2024-02-24T16:02:08","date_gmt":"2024-02-24T16:02:08","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=11679"},"modified":"2024-11-15T13:55:36","modified_gmt":"2024-11-15T13:55:36","slug":"tax-rates-thresholds-updates-payroll","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/tax-rates-thresholds-updates-payroll\/","title":{"rendered":"Tax rates, thresholds, and updates for your 2024\/25 payroll"},"content":{"rendered":"
\n Last updated: 15 Nov 2024<\/strong>\n <\/div>\n \n

With the new tax year on the horizon, employers should be aware of the rates, thresholds, and allowances to use for their 2024\/25 payroll. If you pay any of your employees the National Living Wage or Minimum Wage, you will also need to update your payroll accordingly to ensure that you\u2019re paying the increased rates from 1 April 2024.<\/p>\n

Below, we provide an overview of Income Tax and National Insurance, Minimum Wage increases, and statutory payments for the new tax year, which runs from 6 April 2024 to 5 April 2025. We also summarise your year-end payroll responsibilities as an employer. This information will be helpful as you make preparations for your 2024\/25 payroll.<\/p>\n

Income Tax for the 2024\/25 tax year\u00a0<\/span><\/h3>\n

During the Autumn Statement 2023, the UK Government confirmed that Income Tax rates and thresholds for the 2024\/25 tax year will remain frozen for taxpayers in England and Northern Ireland.<\/p>\n

There was some speculation that the Chancellor would announce cuts to Income Tax in the upcoming Spring Budget on 6 March. However, in light of news that the UK economy recently fell into recession, this is now extremely unlikely.\u00a0<\/span><\/p>\n

\n \n \"Revolut\n \"Revolut\n <\/a>\n <\/div>\n \n

The tax-free Personal Allowance of \u00a312,570, which applies to taxpayers in all four nations of the UK, will be frozen until April 2028. This means that the standard Personal Allowance in the new tax year will remain at \u00a3242 per week or \u00a31,048 per month.\u00a0<\/span><\/p>\n

New employment laws for 2024 you need to know<\/span><\/a>\n What payroll information do I need to report to HMRC?<\/span><\/a>\n <\/p>\n

The Welsh government has proposed that Income Tax rates and thresholds for 2024\/25 remain equal to those in England and Northern Ireland. However, this is still subject to the Senedd\u2019s approval.\u00a0<\/span><\/p>\n

Income tax in England, Wales, and Northern Ireland<\/h4>\n\n\n\n\n\n\n\n\n
Tax band<\/td>\nTax rate<\/td>\nTaxable income threshold<\/td>\n<\/tr>\n<\/thead>\n
Personal allowance<\/td>\n0%<\/td>\nUp to \u00a312,570<\/td>\n<\/tr>\n
Basic rate<\/td>\n20%<\/td>\n\u00a312,571 to \u00a350,270<\/td>\n<\/tr>\n
Higher rate<\/td>\n40%<\/td>\n\u00a350,271 to \u00a3125,140<\/td>\n<\/tr>\n
Additional rate<\/td>\n45%<\/td>\nOver \u00a3125,140<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Income tax in Scotland<\/h4>\n

With the exception of the UK-wide Personal Allowance, the Scottish Government sets its own Income Tax rates and thresholds. If any of your employees are Scottish taxpayers, there are several changes to be aware of for your 2024\/25 payroll:<\/p>\n