With effect from 6 April 2023 there has been an increase in some of the National Insurance and Income Tax thresholds.
The following Income Tax and National Insurance thresholds and rates will apply from 6 April 2023 to 5 April 2024:-
Income Tax Thresholds & Rates
England and Northern Ireland:-
| PAYE Tax Rates and Thresholds | 2023-2024 |
|---|---|
| The standard employee personal allowance | £242 per week £1,048 per month £12,570 per year |
| Basic tax rate | 20% on annual earnings above the PAYE tax threshold and up to £37,700 |
| Higher tax rate | 40% on annual earnings from £37,701 to £125,140 |
| Additional tax rate | 45% on annual earnings above £125,140 |
Scotland:-
| PAYE Tax Rates and Thresholds | 2023-2024 |
|---|---|
| The standard employee personal allowance | £242 per week £1,048 per month £12,570 per year |
| Starter tax rate | 19% on annual earnings above the PAYE tax threshold and up to £2,162 |
| Basic tax rate | 20% on annual earnings from £2,163 to £13,118 |
| Intermediate tax rate | 21% on annual earnings from £13,119 to £31,092 |
| Higher tax rate | 42% on annual earnings from £31,093 to £125,140 |
| Top tax rate | 47% on annual earnings above £125,140 |
Wales:-
| PAYE Tax Rates and Thresholds | 2023-2024 |
|---|---|
| The standard employee personal allowance | £242 per week £1,048 per month £12,570 per year |
| Basic tax rate | 20% on annual earnings above the PAYE tax threshold and up to £37,700 |
| Higher tax rate | 40% on annual earnings from £37,701 to £125,140 |
| Additional tax rate | 45% on annual earnings above £125,140 |
Class 1 NIC Thresholds 2023-2024
| Class 1 National Insurance thresholds | per week | per month | per year |
|---|---|---|---|
| LEL | £123 | £533 | £6,396 |
| Primary Threshold | £242 | £1,048 | £12,570 |
| Secondary Threshold | £175 | £758 | £9,100 |
| Freeport upper secondary threshold | £481 | £2,083 | £25,000 |
| Upper secondary threshold (under 21) | £967 | £4,189 | £50,270 |
| Apprentice upper secondary threshold (apprentice under 25) | £967 | £4,189 | £50,270 |
| Veterans upper secondary threshold | £967 | £4,189 | £50,270 |
| Upper earnings limit | £976 | £4,189 | £50,270 |
Note, Employees pay National Insurance Contributions on earnings above the Primary Threshold. Employers pay National Insurance Contributions on salary payments above the Secondary Threshold.
Dividend Tax Rates 2023-2024
- The tax-free dividend allowance has been lowered to £1,000.
- Basic-rate taxpayers pay 8.75% on dividends.
- Higher-rate taxpayers pay 33.75% on dividends.
- Additional-rate taxpayers pay 39.35% on dividends.
Business Mileage Allowances
There has been no change to HMRC’s approved mileage allowance payments which remain as follows:-
| First 10,000 Miles | Over 10,000 Miles | |
| Car / Van | £0.45 | £0.25 |
| Motorcycle | £0.24 | £0.24 |
| Bicycle | £0.20 | £0.20 |