Statutory Alerts

Apr 4, 2024 1 min read

UK – Changes in tax rates and social security rates 2024-25

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The following rates are effective from 6^thApril 2024 till 5^th April 2025, unless otherwise provided.

New Tax rates and brackets for 2024-25

For Scotland, tax rates are revised:

PAYE tax rate	Rate of tax (%)	Annual earnings the rate applies to
Starter tax rate	19	Up to £2,306
Basic tax rate	20	From £2,307 to £13,991
Intermediate tax rate	21	From £13,992 to £31,092
Higher tax rate	42	From £31,093 to £62,430
Advanced tax rate	45	From £62,431 to £125,140
Top tax rate	48	Above £125,140

New social security rates for 2024-25

National Insurance rates and categories are revised as below:

Employee rates:

NI Letter	Earnings below LEL	Earning at or above LEL up to and including PT	Earning above the PT up to and including UEL	Balance of earnings above the UEL
A	NIL	0%	8%	2%
B	NIL	0%	1.85%	2%
C	NIL	NIL	NIL	NIL
D	NIL	0%	2%	2%
E	NIL	0%	1.85%	2%
F	NIL	0%	8%	2%
H	NIL	0%	8%	2%
I	NIL	0%	1.85%	2%
J	NIL	0%	2%	2%
K	NIL	NIL	NIL	NIL
L	NIL	0%	2%	2%
M	NIL	0%	8%	2%
N	NIL	0%	8%	2%
S	NIL	NIL	NIL	NIL
V	NIL	0%	8%	2%
Z	NIL	0%	2%	2%

Employer rates:

NI Letter	Earnings below LEL	Earnings at or above the LEL up to and including the ST	Earnings above the ST up to and including the FUST/IZUST	Earnings above the FUST/IZUST up to and including UST/AUST/VUST	Balance of earnings above UST/AUST/VUST
A	NIL	0%	13.8%	13.8%	13.8%
B	NIL	0%	13.8%	13.8%	13.8%
C	NIL	0%	13.8%	13.8%	13.8%
D	NIL	0%	0%	13.8%	13.8%
E	NIL	0%	0%	13.8%	13.8%
F	NIL	0%	0%	13.8%	13.8%
H	NIL	0%	0%	0%	13.8%
I	NIL	0%	0%	13.8%	13.8%
J	NIL	0%	13.8%	13.8%	13.8%
K	NIL	0%	0%	13.8%	13.8%
L	NIL	0%	0%	13.8%	13.8%
M	NIL	0%	0%	0%	13.8%
N	NIL	0%	0%	13.8%	13.8%
S	NIL	0%	0%	13.8%	13.8%
V	NIL	0%	0%	0%	13.8%
Z	NIL	0%	0%	0%	13.8%

New Student loan thresholds for 2024-25

Threshold	2024 to 2025 rate
Employee earnings threshold for student loan plan 1	£24,990 per year
Employee earnings threshold for student loan plan 2	£27,295 per year
Employee earnings threshold for student loan plan 4	£31,395 per year
Employee earnings threshold for postgraduate loan	£21,000 per year
Student loan deductions	9%
Postgraduate loan deductions	6%

New Maternity/Paternity/Parental pay for 2024-25.

These rates are applicable from the 7th of April 2024

Type of Payment or Recovery	2024 to 2025 rate
Statutory Maternity Pay (Weekly rate for first 6 weeks)	90% of the employees average weekly earnings
Statutory Maternity Pay (Weekly rate for remaining weeks)	£184.03 or 90% of the employees average weekly earnings, whichever is lower
Statutory Paternity Pay (Weekly rate)	£184.03 or 90% of the employees average weekly earnings, whichever is lower
Statutory Adoption Pay (Weekly rate for first 6 weeks)	90% of the employees average weekly earnings
Statutory Adoption Pay (Weekly rate for remaining weeks)	£184.03 or 90% of the employees average weekly earnings, whichever is lower
Statutory Shared Parental Pay (Weekly rate)	£184.03 or 90% of the employees average weekly earnings, whichever is lower
Statutory Parental Bereavement Pay (Weekly rate)	£184.03 or 90% of the employees average weekly earnings, whichever is lower

92% of your payment portions may be recovered from HMRC for statutory Maternity Pay, Paternity Pay, Adoption Pay, Shared Parental Pay or Parental Bereavement Pay.

New Statutory Sick Pay Rates for 2024-25

Number of Qualifying Days Per Week	2024 to 2025 Unrounded Daily Rates
7	£16.6785
6	£19.4583
5	£23.35
4	£29.1875
3	£38.9166
2	£58.375
1	£116.75

New Company Car Advisory Fuel Rates for 2024-25

These rates are applicable from the 1^st of March 2024

Engine Size	Petrol – Amount per Mile	LPG – Amount per Mile
1400cc or less	13 Pence	11 Pence
1401cc – 2000cc	15 Pence	13 Pence
2000cc or more	24 Pence	21 Pence

Engine Size	Diesel – Amount per Mile
1600cc or less	12 Pence
1601cc – 2000cc	14 Pence
2000cc or more	19 Pence

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change

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UK – Tax and Social Security rate amendments 2024-25

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