Income Tax Rates And Thresholds
PAYE Tax Rates & Thresholds 2024/25
Employee Personal Allowance: £12,570
Basic Rate Tax Band: 20% on income between £12,571 and £37,700
Higher Rate Tax Band: 40% on income between £37,701 and £125,140
Additional Rate Tax Band: 45% on income above £125,140
National Insurance Contributions 2024/25
Class 1 National Insurance threshold: £6,396 per year
If you earn below £6,396 you will not pay any National Insurance contributions.
If you earn between £6,396 and £50,270 you will pay NICs at 10%
On the balance of earnings above £50,270 you will pay National Insurance at 2% (For example if you are paid £60,270 you will pay the 2% on the £10,000 balance that is over the threshold).
National Minimum Wage and National Living Wage 2024/25
From 1 April 2024, the National Minimum Wage and National Living Wage is increasing. The minimum hourly wage depends on worker status and age:
For employees aged 21 and above, the minimum hourly rate is £11.44
For employees aged between 18 and 20, the minimum hourly rate is £8.60
For employees under 18 years old but above compulsory school leaving age, the minimum hourly rate is £6.40
For apprentices aged under 19, the minimum hourly rate is £6.40
Apprentices aged 19 and over, but in the first year of their apprenticeship, the minimum hourly rate is £6.40
