The new tax year starts on 6 April 2024, which brings changes to a range of payroll legislation. This Help Centre article highlights the rates and thresholds to be aware of. Another Help Centre article covers larger key legislation changes for the new tax year.
rUK (England and Northern Ireland) and Welsh tax rates
These rates apply from your first pay date on or after 6 April.
Threshold | Change | Per year |
Basic Rate (20%) | ➡️ | £1 - £37,700 |
Higher Rate (40%) | ➡️ | £37,701 - £125,140 |
Additional Rate (45%) | ➡️ | £125,141+ |
Scottish tax rates
These rates apply from your first pay date on or after 6 April.
Band | Rate change | Rate | Threshold change | Annual threshold |
Scottish Starter Rate | ➡️ | 19% | ⬆️ | £1 – £2,306 |
Scottish Basic Rate | ➡️ | 20% | ⬆️ | £2,307 – £13,991 |
Scottish Intermediate Rate | ➡️ | 21% | ⬆️ | £13,992 – £31,092 |
Scottish Higher Rate | ➡️ | 42% | ⬆️ | £31,093 – £62,430 |
Scottish Advanced Rate | 🆕 | 45% | 🆕 | £62,431 – £125,140 |
Scottish Top Rate | ⬆️ | 48% | ➡️ | £125,141+ |
National insurance thresholds
These rates apply from your first pay date on or after 6 April.
Threshold | Change | Monthly | Annual |
Lower earnings limit (LEL) | ➡️ | £533 | £6396 |
Primary Threshold (PT) | ➡️ | £1,048 | £12,570 |
Secondary Threshold (ST) | ➡️ | £758 | £9,100 |
Upper Earnings Limit (UEL) | ➡️ | £4,189 | £50,270 |
Upper Secondary Threshold (UST) | ➡️ | £4,189 | £50,270 |
Apprentice Upper Secondary Threshold (AUST) | ➡️ | £4,189 | £50,270 |
Veterans Upper Secondary Threshold | ➡️ | £4,189 | £50,270 |
Investment Zone Upper Secondary Threshold (IVUST) | 🆕 | £2,083 | £25,000 |
Freeport Upper Secondary Threshold | ➡️ | £2,083 | £25,000 |
Employee class 1 national insurance rates
These rates apply from your first pay date on or after 6 April.
In January 2024, the main rate of national insurance decreased by 2 percentage points. This led to a hybrid rate for the director's national insurance calculations.
In April 2024, the main rate of national insurance decreased by a further 2 percentage points. These rates apply to both directors and employees.
For further details about each NI category, please refer to our Help Centre article.
NI category | LEL to PT | PT to UEL | Above UEL |
A ⬇️ | 0% | 8.00% | 2.00% |
B ⬇️ | 0% | 1.85% | 2.00% |
C | 0% | 0.00% | 0.00% |
D 🆕 | 0% | 2% | 2.00% |
E 🆕 | 0% | 1.85% | 2.00% |
F ⬇️ | 0% | 8.00% | 2.00% |
H ⬇️ | 0% | 8.00% | 2.00% |
I ⬇️ | 0% | 1.85% | 2.00% |
J | 0% | 2.00% | 2.00% |
K 🆕 | 0% | 0.00% | 0.00% |
L | 0% | 2.00% | 2.00% |
M ⬇️ | 0% | 8.00% | 2.00% |
N 🆕 | 0% | 8.00% | 2.00% |
S | 0% | 0.00% | 0.00% |
V ⬇️ | 0% | 8.00% | 2.00% |
X | 0% | 0% | 0% |
Z | 0% | 2.00% | 2.00% |
Employer Class 1 national insurance rates
These rates apply from your first pay date on or after 6 April.
NI category | Below PT | Above PT |
Standard A, B, C, J | 0% | 13.80% |
| Below FUST or IVUST | Above FUST or IVUST |
Specialist tax sites D, E, F, I, K, L, N, S | 0% | 13.80% |
| Below AUST, VUST, or AUST | Above AUST, VUST, or AUST |
Apprentices, Veterans or under 21 H, M, V, Z | 0% | 13.8% |
Student loan thresholds
These rates apply from your first pay date on or after 6 April.
Plan type | Rate | Threshold change | Monthly | Annual |
1 | 6% | ⬆️ | £2,082.5 | £24,990 |
2 | 6% | ➡️ | £2,274.58 | £27,295 |
4 | 6% | ⬆️ | £2,616.25 | £31,395 |
Post-graduate loan | 9% | ➡️ | £1,750.00 | £21,000 |
Qualifying earnings for automatic enrolment
The thresholds for the 2024/2025 remain the same as the previous three tax years.
Threshold | Change | Monthly | Annual |
Lower level of qualifying earnings | ➡️ | £520 | £6,240 |
Earnings trigger for automatic enrolment | ➡️ | £833 | £10,000 |
Upper level of qualifying earnings | ➡️ | £4,189 | £50,270 |
National Minimum/Living Wage
These rates apply from 1 April, rather than 6 April with most new tax year legislation. They must be applied from the first full pay reference period that falls on or after 1 April.
The pay reference period is when your employees have worked the hours you're paying them for.
Example 1
On 30th April, you pay your employees for the hours they worked between 1st and 30th April.
The new rates should be applied to their April pay.
Example 2
On 16th April, you pay your employees for the hours they worked between 16th March and 15th April.
The new rates should be applied to their May pay.
Age | Change | Hourly rate |
21+* | ⬆️ | £11.44 |
18-20 | ⬆️ | £8.60 |
Under 18 | ⬆️ | £6.40 |
Apprentice under 19 or | ⬆️ | £6.40 |
*The higher rate (also known as National Living Wage) now applies to employees aged 21 and above. Previously, the rate applied to employees aged 23 and above.
For more information about calculating National Minimum Wage, please refer to our Help Centre article.
Statutory pay rates
The statutory parental pay rate is applicable from the first Sunday of April (7 April 2024) and is paid for the full statutory week that falls on or after this date. While statutory sick pay is applicable from 6 April.
The statutory week refers to the day of the week that the employee starts their parental leave.
Example
The employee starts maternity leave on Friday.
Their statutory week runs from Friday to Thursday.
The increased rate is applicable from week beginning Friday 12th April.
Statutory payment | Change | Rate |
Statutory Paternity Pay (SPP) | ⬆️ | £184.03 |
Statutory Maternity Pay (SMP) | ⬆️ | £184.03 |
Shared Parental Pay (ShPP) | ⬆️ | £184.03 |
Statutory Bereavement Leave (SBP) | ⬆️ | £184.03 |
Statutory Adoption Pay (SAP) | ⬆️ | £184.03 |
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Statutory Sick Pay (SSP) | ⬆️ | £116.75 |
Additional national insurance rates
The Class 1A rate on benefits, expenses, and termination payments remains at 13.8%.
The Class 1B rate on benefits and expenses reported on a PSA also remains at 13.8%.