APRIL 2024 – THE UNITED KINGDOM
STATUTORY CHANGES FOR THE 2024/2025 TAX YEAR
It is important that employers note the following:
Statutory changes effective 6 April 2024
Following the delivery of the Spring Budget on 6 March 2024, the Spring Budget Bill 2024, Finance (No.2) Act 2024 was published on 13 March 2024, bringing the announced tax changes into law.
An overview of all the tax legislation and rates are summarised below.
Personal allowance:
The standard employee personal allowance for the 2024/2025 tax year in England, Northern England, Scotland and Wales remains unchanged as follows:
• £242 per week
• £1,048 per month
• £12,570 per year
Where the income is above £100,000, the personal allowance reduces by £1 for every £2 of income above the £100,000 limit. This reduction applies irrespective of date of birth.
The income limit for married couples’ allowance is an age-related allowance. It is reduced by £1 for every £2 of income over this limit.
| Tax rates:
The tax rates for England, Northern England and Wales remain the same, but those for Scotland have changed. In addition to the current band adjustments, a new tax band with a 45% tax rate was added to the schedule, and the top tax band’s tax rate was increased to 48%.
National Insurance Contributions (NIC) In addition to the reduction in rates, the national taxing authority, His Majesty’s Revenue & Customs (HMRC), also confirmed that the married women’s reduced rate of National Insurance contributions was cut by 2% from 5.85% to 3.85% from 6 January 2024. Class 1 National Insurance Contribution rates:
Employees repay 6% of the amount they earn over the threshold for postgraduate loan.
Company car advisory fuel rates Use the rates when you either: These rates should not be used in any other circumstances. Petrol and LPG (Propane):
Diesel:
Electric: National minimum wage and national living wage Effective 1 April 2024, the rates are:
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