Stay updated on the crucial tax rates for 2024 with Budget 2024. Make smart financial choices with accurate and reliable information.
Income tax rates
| Taxable income
(not dividends and not Scottish residents) £ |
Rate
% |
Tax
£ |
Cumulative
£ |
| 2024/25 | |||
| Savings: 0–5,000 | 0 | Nil | Nil |
| 0–37,700 | 20 | 7,540.00 | 7,540.00 |
| 37,701–125,140 | 40 | 34,976.00 | 42,516.00 |
| Over 125,140 | 45 | – | – |
| 2023/24 | |||
| Savings: 0–5,000 | 0 | Nil | Nil |
| 0–37,700 | 20 | 7,540.00 | 7,540.00 |
| 37,701–125,140 | 40 | 34,976.00 | 42,516.00 |
| Over 125,140 | 45 | – | – |
Tax rates for dividend income
| Dividends within: | 2024/25 | 2023/24 |
| Basic rate band | 8.75% | 8.75% |
| Dividend allowance | £500 | £1,000 |
| Higher rate band | 33.75% | 33.75% |
| Dividend allowance | £500 | £1,000 |
| Additional rate band | 39.35% | 39.35% |
| Dividend allowance | £500 | £1,000 |
Personal allowances and reliefs
| 2024/25
£ |
2023/24
£ |
|
| Personal allowance | 12,570 | 12,570 |
| Income limit for personal allowance | 100,000 | 100,000 |
| Allowances for couples: | ||
| Marriage Allowance | 1,260 | 1,260 |
| Married couples: minimum (born before 6 April 1935) | 4,280 | 4,010 |
| Married couples: maximum (born before 6 April 1935) | 11,080 | 10,375 |
| Income limit for married couples’ allowance, born before 6 April1935 | 37,000 | 34,600 |
| Blind person’s allowance | 3,070 | 2,870 |
| Rent-a-room relief | 7,500 | 7,500 |
| Trading income allowance | 1,000 | 1,000 |
| Property income allowance | 1,000 | 1,000 |
| Savings allowance – basic tax band | 1,000 | 1,000 |
| Savings allowance – higher tax band | 500 | 500 |
Pension allowances
| Tax year: | 2024/25
£ |
2023/24
£ |
| Annual Allowance (AA) | 60,000 | 60,000 |
| AA is tapered when adjusted income including pension contributions exceeds: | 260,000 | 260,000 |
| AND net income excluding pension contributions exceeds: | 200,000 | 200,000 |
| Minimum tapered Annual Allowance | 10,000 | 10,000 |
| Money purchase annual allowance (MPAA) | 10,000 | 10,000 |
| Lifetime Allowance | abolished | abolished |
Corporation tax rates
| Year from 1 April | 2024 | 2023 |
| Main rate | 25% | 25% |
| Small Profits Rate | 19% | 19% |
| Small Profits Rate where profits don’t exceed: | £50,000 | £50,000 |
| Marginal Relief Lower Limit | £50,000 | £50,000 |
| Marginal Relief Upper Limit | £250,000 | £250,000 |
| Standard fraction | 3/200 | 3/200 |
CGT rates and annual exemptions
| Tax Year | Annual exempt amount | Tax rate paid by | ||||
| Individuals, personal representatives (PRs) and trusts for disabled | General trusts | Individuals
within: |
Trustees & PRs | |||
| Basic rate band | Higher tax bands
|
|||||
| £ | £ | % | % | % | ||
| 2024/25 | 3,000 | 1,500 | 10 | 20 | 20 | |
| Residential property | 18 | 24 | 24 | |||
| Carried interest | 18 | 28 | 28
|
|||
| 2023/24 | 6,000 | 3,000 | 10 | 20 | 20 | |
| residential property & carried interest | 18 | 28 | 28 | |||
NIC rates and thresholds
NIC: Class 1 primary monthly thresholds
| Employee (primary) | 2024/25
£ |
2023/24
£ |
| Lower earnings limit (LEL) | 533 | 533 |
| Primary threshold (PT) | 1,048 | 1,048 |
| Upper earnings limit (UEL) | 4,189 | 4,189 |
NIC: Class 1 primary rates
| Employee (primary) | 2024/25 | 2023/24 from 6 Jan 24 | 2023/24 to 5 Jan 24 |
| Up to LEL | N/A | N/A | N/A |
| From LEL to PT | 0% | 0% | 0% |
| From PT to UEL | 8% | 10% | 12% |
| Above UEL | 2% | 2% | 2% |
NIC: Class 1 secondary monthly thresholds
| Employer (Secondary) | 2024/25
£ |
2023/24
£ |
| Secondary threshold (ST) | 758 | 758 |
| Upper secondary threshold for under 21s (UST) | 4,189 | 4,189 |
| Apprentice Upper secondary threshold (AUST) for under 25s | 4,189 | 4,189 |
| Veteran Upper Secondary Threshold (VUST) | 4,189 | 4,189 |
| Investment Zone Upper Secondary Threshold (IZUST) | 2,083 | 2,083 |
| Freeport Upper Secondary Threshold (FUST) | 2,083 | 2,083 |
NIC: Class 1 secondary rates
| Employer (Secondary) | 2024/25 | 2023/24 |
| Up to: ST, FUST, AUST, FUST, IZUST, VUST | 0% | 0% |
| Above: ST, UST, AUST, FUST, IZUST, VUST | 13.8% | 13.8% |
| Employment Allowance – annual amount per company / group | £5,000 | £5,000 |
NIC: Class 2 rates and thresholds
| Tax year | Flat rate per week
(note 1) |
Share fishermen
per week |
Volunteer development workers per week | Small profit threshold
(note 2) |
Lower profits threshold
(note 3) |
|
| £ | £ | £ | £ | £ | ||
| 2024/25 | 3.45 | 4.10 | 6.15 | 6,725 | N/A | |
| 2023/24 | 3.45 | 4.10 | 6.15 | 6,725 | 12,570 | |
Notes:
- Self-employed traders with profits below the small profits threshold do
- not have to pay class 2 NIC, but they are not entitled to a NI credit. They can pay class 2 NIC voluntarily.
- For 2022/23 and 2023/24 self-employed individuals don’t pay class 2 NIC if their annual profits fall between the small profit threshold and the lower profits threshold, but they are given an NI credit for the year.
- From 2024/25 onwards there is no liability to class 2 NIC for self-employed traders with profits above the small profits threshold, but all self-employed traders with profits above the small profits threshold are entitled to an NI credit.
NIC: Class 3 rates
| Tax Year | Weekly Rate £ |
|
| 2024/25 | 17.45 | |
| 2023/24 | 17.45 | |
NIC: Class 4 rates and thresholds
| Tax Year | Main rate | Additional rate | Lower profits limit | Upper profits limit | |
| % | % | £ | £ | ||
| 2024/25 | 6 | 2 | 12,570 | 50,270 | |
| 2023/24 | 9 | 2 | 12,570 | 50,270 | |
VAT registration and deregistration limits
| Effective date | Registration turnover:
£ |
Registration exception: turnover not exceeding
£ |
Deregistration turnover
£ |
| 1 April 2024 | 90,000 | 88,000 | 88,000 |
| 1 April 2017 to 31 Mar 2024 | 85,000 | 83,000 | 83,000 |
High income child benefit charge (HICBC)
| Period child benefit received: | Lower income threshold£ | Upper income threshold
£ |
| From 6 April 2024 | 60,000 | 80,000 |
| From 7 January 2013 to 5 April 2024 | 50,000 | 60,000 |
Please contact us to discuss any of the Spring Budget changes that may effect you or your company. Our expert team are here to help with any questions you may have.
01883 730044
oxted@moorgates.co.uk