Apr 4, 2024 1 min read

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

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 rateRate of tax (%)Annual earnings the rate applies to
Starter tax rate19Up to £2,306
Basic tax rate20From £2,307 to £13,991
Intermediate tax rate21From £13,992 to £31,092
Higher tax rate42From £31,093 to £62,430
Advanced tax rate45From £62,431 to £125,140
Top tax rate48Above £125,140

New social security rates for 2024-25

National Insurance rates and categories are revised as below:

Employee rates:

NI LetterEarnings below LELEarning at or above LEL up to and including PTEarning above the PT up to and including UELBalance of earnings above the UEL
ANIL0%8%2%
BNIL0%1.85%2%
CNILNILNILNIL
DNIL0%2%2%
ENIL0%1.85%2%
FNIL0%8%2%
HNIL0%8%2%
INIL0%1.85%2%
JNIL0%2%2%
KNILNILNILNIL
LNIL0%2%2%
MNIL0%8%2%
NNIL0%8%2%
SNILNILNILNIL
VNIL0%8%2%
ZNIL0%2%2%

Employer rates:

NI LetterEarnings below LELEarnings at or above the LEL up to and including the STEarnings above the ST up to and including the FUST/IZUSTEarnings above the FUST/IZUST up to and including UST/AUST/VUSTBalance of earnings above UST/AUST/VUST
ANIL0%13.8%13.8%13.8%
BNIL0%13.8%13.8%13.8%
CNIL0%13.8%13.8%13.8%
DNIL0%0%13.8%13.8%
ENIL0%0%13.8%13.8%
FNIL0%0%13.8%13.8%
HNIL0%0%0%13.8%
INIL0%0%13.8%13.8%
JNIL0%13.8%13.8%13.8%
KNIL0%0%13.8%13.8%
LNIL0%0%13.8%13.8%
MNIL0%0%0%13.8%
NNIL0%0%13.8%13.8%
SNIL0%0%13.8%13.8%
VNIL0%0%0%13.8%
ZNIL0%0%0%13.8%

New Student loan thresholds for 2024-25

Threshold2024 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 deductions9%
Postgraduate loan deductions6%

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

These rates are applicable from the 7th of April 2024

Type of Payment or Recovery2024 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 Week2024 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 SizePetrol – Amount per MileLPG – Amount per Mile
1400cc or less13 Pence11 Pence
1401cc – 2000cc15 Pence13 Pence
2000cc or more24 Pence21 Pence
Engine SizeDiesel – Amount per Mile
1600cc or less12 Pence
1601cc – 2000cc14 Pence
2000cc or more19 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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