UK Tax Year 2024/2025 breakdown
§ A · England, Wales & Northern Ireland
Income tax bands & thresholds
| Band | Income range | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic rate | £12,570 – £50,270 | 20% |
| Higher rate | £50,270 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
§ B · Scotland
Scottish income tax bands
| Band | Income range | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Starter rate | £12,570 – £14,876 | 19% |
| Basic rate | £14,876 – £26,561 | 20% |
| Intermediate rate | £26,561 – £43,662 | 21% |
| Higher rate | £43,662 – £75,000 | 42% |
| Advanced rate | £75,000 – £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
§ C · Class 1 employee
National Insurance tiers
| Band | Earnings slice | Rate |
|---|---|---|
| Below Primary Threshold | £0 – £12,570 | 0% |
| Main rate (PT → UEL) | £12,570 – £50,270 | 8% |
| Upper rate (above UEL) | Over £50,270 | 2% |
2024/25 — The Introduction of the Scottish Advanced Rate
The 2024/25 fiscal year marked a massive structural divergence in the UK personal tax landscape. While the rest of the UK (England, Wales, and Northern Ireland) saw a continuation of the rigid multi-year threshold freeze enacted under fiscal drag policies, Holyrood radically overhauled Scotland’s tax code.
This year officially introduced the Scottish 45% Advanced Rate, wedged between the Higher and Top rate bounds, transitioning Scotland from a five-band to a comprehensive six-band progressive income tax system.
The National Insurance 8% Landmark
For employees nationwide, 2024/25 delivered a major tax reduction via Class 1 National Insurance Contributions (NICs). Following an initial temporary drop in the preceding months, the Spring Budget permanently locked the primary employee contribution rate down to 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270).
The higher tier contribution rate on earnings exceeding the Upper Earnings Limit remained securely pinned at 2%.
Reduced Financial Exemptions
This fiscal year also applied sharp reductions to investment tax shields across the United Kingdom:
- The Dividend Allowance was halved from £1,000 down to £500. Any dividend payouts above this point were hit with progressive tax brackets relative to the individual’s baseline income band.
- The Capital Gains Tax (CGT) Annual Exempt Amount was slashed from £6,000 down to £3,000 for individual asset transfers.
- The standard Individual Savings Account (ISA) annual subscription capacity remained static at £20,000.
Contextual Routing Record
This route serves as a public audit trail for comparative tax history. The automated data rows rendered on this page are fetched directly from the unified calculation core arrays matching the 2024-2025 key signature. To process real-time optimization calculations or review active workplace pension scenarios for your historic P60 documentation, pass your variables using our main engine interface at SalaryGrid.uk.
§ D · Common questions
2024/2025 tax year FAQ
- What are the income tax brackets for the 2024/2025 tax year?
- For England, Wales and Northern Ireland in 2024/2025, the first £12,570 is the tax-free Personal Allowance. The 20% basic rate then applies up to £50,270, the 40% higher rate up to £125,140, and the 45% additional rate on income above that. Scotland sets its own banded rates — see the Scottish table above.
- What is the Personal Allowance for 2024/2025?
- The 2024/2025 Personal Allowance is £12,570. It is reduced by £1 for every £2 of income above £100,000, so it is fully withdrawn once income reaches £125,140.
- What are the National Insurance rates for 2024/2025?
- In 2024/2025, Class 1 employee National Insurance is charged at 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270), then 2% on earnings above the Upper Earnings Limit.
- When does the 2024/2025 UK tax year start and end?
- The 2024/2025 UK tax year runs from 6 April 2024 to 5 April 2025.
Model pensions, student loans and salary sacrifice against this year's bands
The sidebar covers the core PA + IT + NI math. SalaryGrid's full grid layers in workplace pensions, custom tax codes, marriage allowance and the 60% trap optimiser — all running against the 2024/2025 ruleset.