Rates and thresholds for 2024/25 confirmed
The tax and NI rates and thresholds, as well as the national living and minimum wage levels, applicable to earnings taxed under PAYE have been confirmed for the 2024/25 tax year. Are there any highlights you need to be aware of?
One of the more lamented features of the current tax system is the ongoing freeze applying to tax/NI thresholds and allowances, which were originally planned to remain in place until 2028. The announced parameters for 2024/25 seem to confirm this will be the case for England and Wales. Scottish taxpayers will see the introduction of a new “advanced” income tax band, meaning there will be six income tax rates. When combined with the various NI rates (which apply at UK rates), the position in Scotland is increasingly complicated.
While the publication appears to pour cold water on rumours that a cut to income tax (or an increase to the higher rate threshold) is imminent, there is also a short caveat that says “Unless otherwise stated, the following figures apply from 6 April 2024 to 5 April 2025.” This means there could still be changes made at next month’s Budget.
The levels of the national living wage (NLW) and national minimum wage (NMW) have also been confirmed, with the NLW increasing to £11.44 per hour from April 2024 and the NMW to £8.60 per hour.
Related Topics
-
Timetable for agent multi-factor authentication rollout published
HMRC has published further details of its plans to introduce multi-factor authentication (MFA) for tax agents. The rollout is intended to strengthen security across HMRC's online services and will be introduced in stages over the coming months. What do you need to know?
-
Using the EIS to unwind capital gains tax
You inherited shares from your father last year and sold them several months later making a tidy capital gain. You’ve read that the enterprise investment scheme (EIS) can defer the resulting tax bill, but how might it reduce it?
-
Electronic VAT return and payment due