HM Revenue and Customs Software Developers Support Team have issued the following Monday 4th December 2023 and then updated further with the Scottish and Welsh budgets on Wednesday 20th December 2024.
Dear PAYadvice.UK
Following Scottish and Welsh Budget announcements we can provide the following Income Tax information for 2024-25. Details for England and Northern Ireland remain as stated in our email of 4 December 2022, but are given again here for convenience.
The revised detail has been inserted as an update into the 4th December 2023 communication
…….
Dear Developer,
Following the Autumn Statement of 22 November 2023, we can confirm the following information for payroll 2024-25.
Where details are not currently known, these are marked as TBA. We will provide a further update as soon as we can.
…..
2024-2025
Personal Allowance:
£12,570
Confirmed
PAYE Thresholds:
Weekly: £242
Confirmed
Monthly: £1,048
Confirmed
Standard / Emergency tax code:
1257L
Confirmed
Tax Code uplifts:
- L: N/A due to no change in the Personal Allowance Confirmed
- M: N/A due to no change in the Personal Allowance Confirmed
- N: N/A due to no change in the Personal Allowance Confirmed
The following is inserted from the 20th December update
Income Tax Rates – England & Northern Ireland
Basic rate (BR) 20% 1 – 37,700
Higher rate (D0) 40% 37,701 – 125,140
Additional rate (D1) 45% 125,141 >
Confirmed
Income Tax Rates – Scotland
Starter rate 19% 1 – 2,306
Basic rate (SBR) 20% 2,307 – 13,991
Intermediate rate (SD0) 21% 13,992 – 31,092
Higher rate (SD1) 42% 31,093 – 62,430
Advanced rate (SD2) 45% 62,431 – 125,140
Top rate (SD3) 48% 125,141 >
Income Tax rates and thresholds are subject to parliamentary approval.
Income Tax Rates – Wales
Basic rate (CBR) 20% 1 – 37,700
Higher rate (CD0) 40% 37,701 – 125,140
Additional rate (CD1) 45% 125,141 >
Income Tax rates are subject to parliamentary approval.
The following is from the original 4th December communication.
Class 1 NICs rates and thresholds:
See attachment Class 1 NICs Rates and Earnings Limits 2024-2025 v1.0
Confirmed
National Insurance contributions (NICs) relief for employers who hire veterans
The employers NICs relief will continue to be available from April 2024, to employers of qualifying veterans.
Category Letter V (and the Veterans Upper Secondary Threshold) remains in force and available for use in payroll during 2024-2025.
Class 1A NICs rate:
13.8%
Confirmed
Class 1B NICs rate:
13.8%
Confirmed
National Living Wage & National Minimum Wage rates:
See attachment NLW_NMW 2024-2025 v1.0
Confirmed
Note: National Living Wage age has been lowered to include 21 and 22 year olds.
Student Loan & Postgraduate Loan Thresholds and deduction rates:
See attachment SL_PGL 2024-2025 v1.0
Student Loan Plans 1, 2 and 4 Confirmed
Postgraduate Loan TBA
Employment Allowance:
£5,000
Confirmed
Statutory Payments rates:
See attachment SP_SSP 2024-2025 v1.0Confirmed
Apprenticeship Levy:
£15,000
0.5%
Confirmed
Kind regards
HMRC SDSTeam
PAYadvice resources
The PAYadvice.UK tax year 2024/2025 resources have been update to reflect the changes as they are announced:
PAYadvice.UK 6/12/2023 updated 22/12/2023