Income tax band and rates
Useful Information
2023/24
2024/25
Basic rate
20%
20%
Higher rate
40%
40%
Additional rate
45%
45%
Personal allowance (PA)
£12,570
£12,570
Basic rate band
£1 → £37,700
£1 → £37,700
Higher rate band
£37,701 → £125,140
£37,701→ £125,140
Marriage allowance
£1,260
£1,260
Saving PA – only saving income
£5,000
£5,000
Saving PA – basic rate taxpayer
£1,000
£1,000
Saving PA – higher rate taxpayer
£500
£500
Saving PA – additional rate taxpayer
Nil
Nil
Dividend personal allowance
£1,000
£500
Dividend basic rate taxpayer
8.75%
8.75%
Dividend higher rate taxpayer
33.75%
33.75%
Dividend additional rate taxpayer
39.35%
39.35%
National Insurance Contributions
2023/24
2024/25
Class 1 primary (employee) contributions
Lower earning limit (LEL)
£123 weekly
£123 weekly
Primary threshold
£242 weekly
£242 weekly
Upper earning limit (UEL)
£967 weekly
£967 weekly
Rate above primary threshold
12% (10% from 6th January 2024)
8%
Rate above upper earning limit (UEL)
2%
2%
Class 1 secondary (employer) contributions
Secondary earnings threshold (ST)
£175 weekly
£175 weekly
Upper secondary threshold for U21’s (UST)
£967 weekly
£967 weekly
Apprentice upper secondary threshold for U25’s (AUST)
£967 weekly
£967 weekly
Rate above ST / UST / AUST
13.8%
13.8%
Employment Allowance (per year, per employer if applicable)
£5,000
£5,000
Class 2 – Self employed
Weekly rate
£3.45
£3.45
Small earning exemption
£6,725
£6,725
Class 4 – Self employed
Rate above upper
2%
2%
Rate above lower before upper
9%
6%
Annual earning upper limit
£50,270
£50,270
Annual earning lower limit
£12,570
£12,570
Capital Gains
2023/24
2024/25
Annual exempt amount
£6,000
£3,000
Higher rate (above income basic tax rate band)
Residential properties
Other chargeable assets
28%
20%
24%
20%
Standard rate (within income basic tax rate band)
Residential properties
Other chargeable assets
18%
10%
18%
10%
Entrepreneurs relief
10% up to £1million
10% up to £1million
Corporation Tax
2023/24
2024/25
Small Profit Rate (Below £50,000)
19%
19%
Marginal Relief calculation (Profits between £50,000 and £250,000)
Use the standard fraction 3/200
Use the standard fraction 3/200
Main Profit Rate (Greater than £250,000)
25%
25%
VAT
Annual deregistration limit – taxable supplies (from 1st April 2024)
£88,000
Annual registration limit – taxable supplies (from 1st April 2024)
£90,000
Reduced rate
5%
Standard rate (since 4th January 2011)
20%
Minimum Wage
From 1st April 2024
Apprentice
£6.40 per hour
Under 18 years old
£6.40 per hour
18 → 20 years old
£8.60 per hour
21 years old and over
£11.44 per hour