The Income Tax and Personal Allowances for 2024 were set at the 2023 budget. The Income Tax and Personal Allowances are used to calculate the amount of Income tax due in the 2024 to 2025 Tax Year, if you are an employee, your income tax will typically be calculated and deducted from your salary as Pay As You Earn (PAYE) along with your other salary deductions like National Insurance, Company Pension and student loans deductions etc.
Income Tax Rates and Bands Band | Taxable Income | Tax Rate |
Personal Allowance | Up to £ 12,570.00 | 0% |
Basic rate | £ 12,571.00 to £ 50,270.00 | 20% |
Higher rate | £ 50,271.00 to £ 150,000.00 | 40% |
Additional rate | over£ 150,001.00 | 45% |
Scotland has separate Income Tax Rates and Bands in 2024, your salary calculations will use the Scottish Income Tax Rates and Bands if you live in Scotland. Unlike the rest of the UK which goes directly to central Government, the income tax from Scottish income tax deductions is paid to the Scottish Government.
Income Tax Rates and Bands in Scotland Band | Taxable Income | Tax Rate |
Personal Allowance | Up to £ 12,570.00 | 0% |
Starter rate | £ 12,571.00 to £ 14,732.00 | 19% |
Basic rate | £ 14,733.00 to £ 25,688.00 | 20% |
Intermediate rate | £ 25,689.00 to £ 43,662.00 | 21% |
Higher rate | £ 43,663.00 to £ 125,140.00 | 42% |
Top rate | over£ 125,141.00 | 45% |
Dividend rates 8.75% | Dividend ordinary rate - for dividends otherwise taxable at the basic rate |
33.75% | Dividend upper rate - for dividends otherwise taxable at the higher rate |
39.35% | Dividend additional rate - for dividends otherwise taxable at the additional rate |
Savings rates 0% | Starting rate for savings |
20% | Savings basic rate |
£ 5,000.00 | Starting rate limit for savings |
40% | Savings higher rate |
45% | Savings additional rate |
Default rates 20% | Default basic rate |
40% | Default higher rate |
45% | Default additional rate |
Special rates for trustees' income 20% | Up to 20%, depends on the type of income |
45% | Trust rate |
38.1% | Dividend trust rate |
Income tax allowances £ 12,570.00 | Personal allowanceNo longer seperate age allowance from 2016 |
£ 100,000.00 | Income limit for personal allowance |
£ 28,000.00 | Income limit for Married couple's allowance |
£ 1,190.00 | Marriage allowance |
£ 8,445.00 | Maximum amount of married couple's allowance |
£ 3,260.00 | Minimum amount of married couple's allowance |
£ 2,390.00 | Blind person's allowance |
£ 1,000.00 | Dividend allowance |
£ 1,000.00 | Personal savings allowance for basic rate taxpayers |
£ 500.00 | Personal savings allowance for higher rate taxpayers |
Class 1 NICs: Employee and employer rates and thresholds (£ per week) £ 123.00 | Weekly Lower Earnings Limit (LEL) |
£ 242.00 | Weekly Primary Threshold (PT) |
£ 175.00 | Weekly Secondary Threshold (ST) |
£ 967.00 | Weekly Upper Earnings Limit (UEL) |
£ 967.00 | Weekly Upper Secondary Threshold for under 21s |
£ 967.00 | Weekly Apprentice Upper Secondary Threshold (AUST) for under 25s |
£ 5,000.00 | Employment Allowance (annual, per employer) |
Employee's (primary) Class 1 contribution rates 0% | Below LEL |
0% | LEL - PT |
8% | PT- UEL |
2% | Above UEL |
Married woman's reduced rate for (primary) Class 1 contribution rates 5.85% | Weekly earnings from between the PT and UEL |
2% | Weekly earnings from above UEL |
Employer's (secondary) Class 1 contribution rates 0% | Below ST |
13.8% | Above ST |
Employer's (secondary) Class 1 contribution rates for employees under 21 0% | Below UST |
13.8% | Above UST |
Employer's (secondary) Class 1 contribution rates for Apprentices under 25 |
0% | Below AUST |
13.8% | Above AUST |
Class 2 NICs: Self-employed rates and thresholds (£ per week) £ 6,365.00 | Small Profits Threshold (SPT) |
0% | Below SPT |
6% | Above SPT |
3.5% | Special Class 2 rate for share fishermen |
5.65% | Special Class 2 rate for volunteer development workers |
Class 3 NICs: Other rates and thresholds (£ per week) 14.65% | Voluntary contributions |
Class 4 NICs: Self-employed rates and thresholds (£ per year) £ 8,632.00 | Lower Profits Limit (LPL) |
£ 50,000.00 | Upper Profits Limit (UPL) |
0% | Below LPL |
9% | LPL to UPL |
2% | Above UPL |
Working tax credit £ 1,960.00 | Basic element |
£ 2,010.00 | Couple and lone parent element |
£ 810.00 | 30 hour element |
£ 3,000.00 | Disabled worker element |
£ 1,290.00 | Severe disability element |
Childcare element of the working tax credit £ 9,100.00 | Maximum eligible cost for one child |
£ 15,600.00 | Maximum eligible cost for two or more children |
70% | Percentage of eligible costs covered |
Child tax credit £ 545.00 | Family element |
£ 2,780.00 | Child element |
£ 3,175.00 | Disabled child element |
£ 1,290.00 | Severely disabled child element |
Income thresholds and withdrawal rates £ 6,420.00 | Income threshold |
41% | Withdrawal rate (per cent) |
£ 16,105.00 | First threshold for those entitled to child tax credit only |
£ 2,500.00 | Income rise disregard |
£ 2,500.00 | Income fall disregard |
Child benefit £ 1,076.40 | Eldest/only child |
£ 712.40 | Other children |
£ 868.40 | Guardians allowance |
Tax free savings accounts £ 20,000.00 | Individual Savings Account (ISA) subscription limit |
£ 4,128.00 | Junior ISA subscription limit |
£ 4,128.00 | Child Trust Fund (CTF) subscription limit |
Fuel benefit and van benefit charge £ 22,600.00 | Car fuel benefit charge multiplier |
£ 610.00 | Van fuel benefit charge |
£ 3,230.00 | Van benefit charge |
Student Loans £ 17,494.88 | Student Loan, Plan 1, Earning threshold: |
9% | Student Loan, Plan 1, Rate |
£ 20,999.68 | Student Loan, Plan 2, Earning threshold: |
9% | Student Loan, Plan 2, Rate |
You can calculate the salary after tax in 2024 using the 2024 Salary Calculator