Autumn Statement: Income Tax and National Insurance


Main personal allowances and reliefs2024/252023/24
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
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*2024/252023/24
19% starter rate on taxable income up toTBA£2,162
20% basic rate on next slice up toTBA£13,118
21% intermediate rate on next slice up toTBA£31,092
42% higher rate on next slice up toTBA£125,140
47% top rate on income overTBA£125,140
Income tax rates and bands2024/252023/24
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
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 taxpayers8.75%8.75%
                                                higher rate taxpayers33.75%33.75%
                                                additional rate taxpayers39.35%39.35%

** Not available if taxable non-savings income exceeds the starting rate band.

Income exemption generally£500N/A
Standard rate band generallyN/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



Class 1

 Employee – Primary Employer – Secondary
NICs rate10%*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 pwNo limit
2% NICs on earnings over£967 pwN/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 thresholdsWeeklyMonthlyAnnual
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 directors13.8% 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 £50,2708%
 Over £50,2702%


Class 3 flat rate£17.45pw£907.40 pa