Last updated: March 2026 · Reflects 2025/26 tax year
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
Start Calculating →Related Articles
UK Tax Changes 2025/26
See what changed in the latest tax year.
Tax PlanningThe £100k Tax Trap
How the frozen thresholds affect high earners.
Money TipsHow to Maximise Your Take Home Pay
Strategies to keep more of your earnings.
PensionsSalary Sacrifice Complete Guide
Save on tax with salary sacrifice.