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Tax Updates8 min read
UK Tax Changes 2024/25: What You Need to Know
Complete guide to the latest tax rates, thresholds, and changes affecting your take-home pay this tax year.
Key Changes Summary
✅ Good News
- • Personal allowance remains at £12,570
- • Basic rate threshold frozen at £50,270
- • National Insurance rates reduced
⚠️ Watch Out
- • Thresholds frozen until 2028
- • More people in higher rate tax
- • Student loan threshold changes
Income Tax Rates 2024/25
| Tax Band | Income Range | Rate |
|---|---|---|
| Personal Allowance | £0 - £12,570 | 0% |
| Basic Rate | £12,571 - £50,270 | 20% |
| Higher Rate | £50,271 - £125,140 | 40% |
| Additional Rate | £125,140+ | 45% |
Note: Scotland has different rates and bands. The personal allowance also reduces by £1 for every £2 of income above £100,000.
National Insurance Changes
Employee Rates (Class 1)
2024/25 Rates
- • 12% on earnings £12,570 - £50,270
- • 2% on earnings above £50,270
Previous Year
- • 12% on earnings £12,570 - £50,270
- • 2% on earnings above £50,270
Self-Employed Rates
- Class 2: £3.45 per week (if profits exceed £6,515)
- Class 4: 9% on profits £12,570 - £50,270, then 2% above
Student Loan Changes
Plan 1 (Pre-2012 students)
Repayment threshold: £22,015 (increased from £20,195)
Rate: 9% on income above threshold
Plan 2 (2012-2023 students)
Repayment threshold: £27,295
Rate: 9% on income above threshold
Plan 5 (Post-2023 students)
Repayment threshold: £25,000
Rate: 9% on income above threshold
What This Means for You
💰 Salary Examples
£30,000 salary:
Take-home pay: ~£24,422 per year
£60,000 salary:
Take-home pay: ~£44,910 per year
📈 Planning Tips
- • Consider salary sacrifice schemes to reduce taxable income
- • Maximize pension contributions for tax relief
- • Review your tax code with HMRC if circumstances change
- • Plan for potential tax bracket changes with salary increases
Calculate Your Take-Home Pay
Use our free calculator to see exactly how these changes affect your salary
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