INCOME TAX
| Main personal allowances and reliefs | 2024/25 | 2023/24 |
| Personal allowance* | £12,570 | £12,570 |
| Marriage/civil partner’s transferable allowance | £1,260 | £1,260 |
| Married couple’s/civil partner’s allowance at 10%† – maximum (if at least one born before 6/4/35) – minimum | £11,080 | £10,375 |
| £4,280 | £4,010 | |
| Blind person’s allowance | £3,070 | £2,870 |
| Rent-a-room relief | £7,500 | £7,500 |
| Property allowance and trading allowance (each) | £1,000 | £1,000 |
* Personal allowance reduced by £1 for every £2 of adjusted net income over £100,000.
† Reduced by £1 for every £2 of adjusted net income over £37,000 (£34,600 for 2023/24), until the minimum is reached.
Please note: * Scottish Budget to be published on 19 December 2023.
| Scottish taxpayers – non-dividend, non-savings income* | 2024/25 | 2023/24 |
| 19% starter rate on taxable income up to | TBA | £2,162 |
| 20% basic rate on next slice up to | TBA | £13,118 |
| 21% intermediate rate on next slice up to | TBA | £31,092 |
| 42% higher rate on next slice up to | TBA | £125,140 |
| 47% top rate on income over | TBA | £125,140 |
| Income tax rates and bands | 2024/25 | 2023/24 |
| UK taxpayers excluding Scottish taxpayers’ non-dividend, non-savings income | ||
| 20% basic rate on taxable income up to | £37,700 | £37,700 |
| 40% higher rate on next slice over | £37,700 | £37,700 |
| 45% additional rate on income over | £125,140 | £125,140 |
All UK taxpayers | 24/25 | 23/24 |
| Starting rate at 0% on band of savings income up to** | £5,000 | £5,000 |
| Personal savings allowance at 0%: basic rate taxpayers higher rate taxpayers additional rate taxpayers | £1,000 £500 £0 | £1,000 £500 £0 |
| Dividend allowance at 0% – all individuals | £500 | £1,000 |
| Tax rates on dividend income: basic rate taxpayers | 8.75% | 8.75% |
| higher rate taxpayers | 33.75% | 33.75% |
| additional rate taxpayers | 39.35% | 39.35% |
** Not available if taxable non-savings income exceeds the starting rate band.
| Trusts | 2024/25 | 2023/24 |
| Income exemption generally | £500 | N/A |
| Standard rate band generally | N/A | £1,000 |
| Dividends (rate applicable to trusts) | 39.35% | 39.35% |
| Other income (rate applicable to trusts) | 45% | 45% |
| High income child benefit charge: 1% of benefit per £100 adjusted net income of £50,000–£60,000 |
If you are looking for tax advice please do get in touch
NATIONAL INSURANCE CONTRIBUTIONS 2024/25
NATIONAL INSURANCE CONTRIBUTIONS 2024/25
Class 1
| Employee – Primary | Employer – Secondary | |
| NICs rate | 10%* | 13.8% |
| No NICs for employees generally on the first | £242 pw | £175 pw |
| No NICs for younger employees† on the first | £242 pw | £967 pw |
| NICs rate charged up to | £967 pw | No limit |
| 2% NICs on earnings over | £967 pw | N/A |
* Applies from 6 January 2024. 12% between 6 April 2023 and 5 January 2024.
†No employer NICs on the first £967 pw for employees generally under 21 years, apprentices under 25 years and veterans in first 12 months of civilian employment. No employer NICs on the first £481 pw for employees at freeports in Great Britain in the first three years of employment.
| Employment allowance | |||
| Per business | £5,000 | ||
| Not available if the sole employee is a director or if employer’s NICs for 2023/24 are £100,000 or more. | |||
| Limits and thresholds | Weekly | Monthly | Annual |
| Lower earnings limit | £123 | £533 | £6,396 |
| Primary threshold | £242 | £1,048 | £12,570 |
| Secondary threshold | £175 | £758 | £9,100 |
| Upper earnings limit (and upper secondary thresholds for younger/veteran employees and apprentices under 25) | £967 | £4,189 | £50,270 |
| Class 1A Employers | |||
| On car and fuel benefits and most other taxable benefits provided to employees and directors | 13.8% pa | ||
| Class 2 Self-employed | |||
| Flat rate (voluntary) | £3.45 pw £179.40 pa | ||
| Small profits threshold | £6,725 pa | ||
| Lower profits limit | £12,570 pa | ||
| Class 4 Self-employed | ||
| On annual profits of | £12,570 to £50,270 | 8% |
| Over £50,270 | 2% | |
Voluntary
| Class 3 flat rate | £17.45pw | £907.40 pa |