UK Payroll Facts 2024-25
Standard tax code is 1257L. This means £12,570 annual earnings allowance. No change from 2023-24 tax year.
Tax Bands and Rates
| 2024-25 | Bandwidths | Tax Rate |
|---|---|---|
| Taxable earnings | £0 - £37,700 | 20% |
| Taxable earnings | £37,701 - £125,140 | 40% |
| Taxable earnings over | above £125,141 unlimited | 45% no allowances |
Statutory Payments
| Description | ||
|---|---|---|
| Statutory Sick Pay up to 28 Weeks (no reimbursement) | £116.75 per week, £23.35 per day (5 day week) | |
| Statutory Maternity / Adoption Pay paid for 39 weeks. First 6 weeks @ 90% of average weekly earnings. | £184.03 gross per week for 33 weeks or average weekly earnings if less | |
| Statutory Paternity Pay 1 or 2 consecutive weeks | £184.03 gross per week or average weekly earnings if less | |
| Small Employer Threshold | Less than £45,000 of previous year's NIC (both employee and employer) | recover 100% plus 3% compensation |
| Large Employer | Only on SMP / SPP / ShPP / SAP or SPBP | 92% recovery |
| Statutory Redundancy Pay maximum 20 weeks | £700.00 per week | or your contracted weekly pay if lower as from 06/04/17 |
National Minimum Wage
| Rate Per Hour | April 2023 | April 2024 |
|---|---|---|
| Apprentice | £5.28 | £6.40 |
| Age 16-17 | £5.28 | £6.40 |
| Age 18-20 | £7.49 | £8.60 |
| Age 21-22 | £10.18 | £11.44 |
| 23 and Over (National Living Wage) | £10.42 | £11.44 |
National Insurance Earnings
| Per Week | Per Month | Per Annum | Employees | Employers | |
|---|---|---|---|---|---|
| Lower Earnings Limit (LEL) | £123 | £533 | £6,396 | Nil | Nil |
| Primary Threshold (PT) | £242 | £1048 | £12,570 | 13.8% | 13.8% |
| Secondary Threshold (ST) | £175 | £758 | £9,100 | 0% | 13.8% |
| Upper Secondary Threshold (UST) (under 21) Apprentice Upper Secondary Threshold (apprentice under 25) Above Upper Earnings Limit (UEL) | £967 | £4,189 | £50,270 | 0% | 13.8% |
Less upto £5,000 Annual Employment Allowance (if total NIC for 2021-22 was under £100,000)
Single Director-only payrolls, where the Director is the only employee, are no longer eligible.
Student Loan Recovery
| Rate or Threshold | 2024 to 2025 rate |
|---|---|
| Employee earnings threshold for Plan 1 earnings above | £24,990 per year |
| Employee earnings threshold for Plan 2 earnings above | £27,295 per year |
| Employee earnings threshold for Plan 4 earnings above | £31,395 per year |
| Student loan deductions | 9% |
| Postgraduate loan (PGL) earnings above £21.000 per year | 6% |
Employee Vehicle Mileage Payments for Business Travel
| Type | Mileage | Rate |
|---|---|---|
| Motor Cars and Vans | First 10,000 business miles* | 45p per mile |
| Motor Cars and Vans | Over 10,000 business miles | 25p per mile |
| Motorcycles | 24p per mile | |
| Cycles | 20p per mile |
*For National Insurance purposes, the higher rate applies to all miles, not only the first £10,000
Apprenticeship Levy
| Allowance or Charge | 2024 to 2025 Rate |
|---|---|
| Apprenticeship Levy allowance | £15,000 |
| Apprenticeship Levy charge | 0.5% |
Employers and connected companies with a total annual pay bill of more than £3 million, are liable to the Apprenticeship Levy, which is payable monthly. Employers who are not connected to another company or charity will have an annual allowance that reduces the amount of Apprenticeship Levy you have to pay. Apprenticeship Levy is charged at a percentage of your annual pay bill.
Other Rates
| Description | Rate |
|---|---|
| Childcare Vouchers (Salary Sacrifice) | Maximum £243 per month (£55 per week) 20% Maximum £124 per month (£28 per week) 40% Maximum £97 per month (£22 per week) 50% |