Rates and thresholds for 2024/25 confirmed
The tax and NI rates and thresholds, as well as the national living and minimum wage levels, applicable to earnings taxed under PAYE have been confirmed for the 2024/25 tax year. Are there any highlights you need to be aware of?
One of the more lamented features of the current tax system is the ongoing freeze applying to tax/NI thresholds and allowances, which were originally planned to remain in place until 2028. The announced parameters for 2024/25 seem to confirm this will be the case for England and Wales. Scottish taxpayers will see the introduction of a new “advanced” income tax band, meaning there will be six income tax rates. When combined with the various NI rates (which apply at UK rates), the position in Scotland is increasingly complicated.
While the publication appears to pour cold water on rumours that a cut to income tax (or an increase to the higher rate threshold) is imminent, there is also a short caveat that says “Unless otherwise stated, the following figures apply from 6 April 2024 to 5 April 2025.” This means there could still be changes made at next month’s Budget.
The levels of the national living wage (NLW) and national minimum wage (NMW) have also been confirmed, with the NLW increasing to £11.44 per hour from April 2024 and the NMW to £8.60 per hour.
Related Topics
-
Do you need to pay tax on loyalty points and cashback?
You’ve been making business purchases on your personal credit card and reaping the rewards in the form of airmiles and cashback. What, if anything, do you need to do to keep on the right side of HMRC?
-
Welsh government plans to tweak relief for buyers
The draft Welsh Budget 2026/27 confirmed there would be no changes in the rates of land transaction tax. However, it did reveal some related changes are being planned. What’s the full story?
-
Can you claim input tax without a VAT invoice?
One of our clientss cannot provide a tax invoice to HMRC to support an input tax claim on the purchase of machinery three years ago. What alternative evidence should be acceptable to the officer?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.