UK – Changes in tax rates and social security rates 2024-25
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The following rates are effective from 6thApril 2024 till 5th 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 1st 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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