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
-
Why is HMRC checking PVA more often?
Your business imports goods and accounts for VAT by applying postponed VAT accounting (PVA) on its returns. HMRC is scrutinising returns and issuing large assessments in some cases. What can you do to reduce the risk of getting it wrong?
-
HMRC text or scam? Check before you act
HMRC is contacting some taxpayers by text this week about overdue Self Assessment liabilities and is also sending updates about VAT registration applications. At the same time, it has expanded its guidance on spotting fake HMRC messages on social media. How can you tell whether a message is genuine?
-
Received a P800? Check how HMRC has used your allowances
Some HMRC P800 tax calculations can produce too much tax where a taxpayer has several different types of income and allowances are not allocated in the most favourable way. People with employment or pension income alongside savings, dividends or other income are particularly at risk here. Could HMRC be charging you too much?
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.