2024/25 Tax rates and allowances at a glance
The new tax year is upon us so here at Adams Accountancy, we’ve decided to give our clients a helping hand by putting all the 2024/25 tax rates and allowances into one handy blog. Covering all the key tax data, this handy list will save you oodles of time this year. Or you could look them all up on the HMRC website if you ‘ve got nothing better to do!
2024/25 Tax rates and allowances for income
| England & Northern Ireland | Wales | Scotland | ||||
| Threshold | Rate | Threshold | Rate | Threshold | Rate | |
| Starter | N/A | N/A | N/A | N/A | £12,570 | 19% |
| Basic | £12,570* | 20% | £12,570 | 20% | £14,876 | 20% |
| Intermediate | N/A | N/A | N/A | N/A | £26,561 | 21% |
| Higher | £50,270 | 40% | £50,270 | 40% | £43,662 | 41% |
| Additional/Advanced | £125,140** | 45% | £125,140** | 45% | £75,000 | 45% |
| Top | N/A | N/A | N/A | N/A | £125,140** | 46% |
*Threshold of taxable income above which basic rate applies assuming full personal allowance entitlement.
** Personal allowance reduces by £1 for every £2 of income above £100,000 limit.
Dividend tax rates and allowances
| Rate | |
| Basic | 8.75% |
| Higher | 33.75% |
| Additional | 39.35% |
| Allowance | £500 |
Personal savings allowances
| Allowance | |
| Basic | £1000 |
| Higher | £500 |
| Additional | £0 |
Other allowances
| Allowance | |
| Married/civil partner (born on/after 6 April 1935) | £1,260 |
| Married/civil partner (born before 6 April 1938) | £11,080 |
| Income limit for age-related allowances | £37,700 |
National Insurance Contributions
Thresholds
| Class 1 (employee) | Weekly | Monthly | Yearly |
| Lower earnings limit (LEL) | £123 | £533 | £6,396 |
| Primary threshold* | £242 | £1,048 | £12,570 |
| Secondary threshold** | £175 | £758 | £9,100 |
| Upper earnings limit (UEL) | £967 | £4,189 | £50,270 |
*No employee NICs payable
**No employer NICS payable
| Class 1 (employee) | |
| Total earnings £ per week | Rate |
| Below 242 | 0% |
| 242.01-967 | 8% |
| Above 967 | 2% |
| Class 1 (employer) | |
| Total earnings £ per week | Rate |
| Below 175 | 0% |
| 175.01-967 | 13.8% |
| Class 2 (self-employed)* | £3.45 per week |
| Class 3 (voluntary) | £17.45 per week |
| Class 4 (self-employed) | 6% of profits between £12,570 and £50,270 2% of profits over £50,270 |
*Class 2 NICs are no longer compulsory but may be paid by individuals with profits below the Lower Profits Limited. They may also be paid by those working overseas instead of Class 3 NICs.
Capital gains tax
| Exemptions | ||
| Individuals/estates | £3,000 | |
| Trusts | £1,500 | |
| Rates | Residential property | Other assets |
| Up to the basic rate limit | 18% | 10% |
| Above the basic rate limit | 24% | 20% |
Business asset disposal relief (BADR)
| Tax rate | 10% |
| Lifetime Limit | £1,000,000 |
For more information, see our blog about BADR.
Inheritance tax
| Rates of tax on death transfers | |
| Nil rate band | £325,000 |
| Main residence nil rate band | £175,000 |
| Tax rate | 40% |
| Lifetime transfers to and from certain trusts | 20% |
| Exemptions | |
| UK domiciled spouse/partner | No limit |
| Non-UK-domiciled spouse/partner | £325,000 |
| UK registered charity | No limit |
| Lifetime transfers | |
| Annual exemption per donor | £3,000 |
| Small gifts exemption | £250 |
| Wedding gift by parent | £5,000 |
| Wedding gift by grandparent | £2,500 |
| Wedding gift by other | £1,000 |
Pensions
| Lump Sum Allowance | Lump Sum Death Benefit Allowance | Annual Allowance | Money Purchase Annual Allowance |
| £268,275 | £1,073,100 | £60,000 | £10,000 |
Corporation Tax
| Small profits rate (under £50,000 profit) | 19% |
| Main rate (profits over £250,000) | 25% |
For ideas on how to reduce your corporation tax bill, check out our blog on allowable expenses.
VAT
| Standard rate | 20%* |
| Reduced rate | 5% |
| Registration threshold | £90,000 |
| De-registration threshold | £88,000 |
*The Flat Rate Scheme allows small businesses to reclaim VAT at variable rates according to the industry.
Getting help with 2024/25 tax rates and allowances
Although we’ve included all the main 2024/25 tax rates and allowances here, there may be other information you need to help you understand your tax position. Get in touch on 01322 250001 or complete our online contact form if you have any questions about the impacts of this years tax information on your business success.
