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
-
Changes to registration threshold?
It’s rumoured that the Chancellor will raise the VAT registration threshold from £90,000 to £120,000 to stimulate economic growth. But other reports suggest it could be cut to £30,000 to raise revenue. What would these changes mean for your business?
-
HMRC to raid bank accounts for unpaid tax
HMRC is restarting the use of direct debt recovery for individuals and businesses who choose not to pay the tax they owe despite having the means to do so. Who’s in the firing line?
-
Mortgage interest: don’t miss out on unused relief!
You own a buy-to-let property and need to report your profits for 2024/25. You have a mortgage, but your calculations show that the tax reducer will exceed the rental profit. Will the excess go to waste?
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.