Government Tax Rates and Thresholds 24/25
The following figures reflect the Tax Rates and Thresholds for the 24/25 Tax Year and are applicable up until the 6th April 2025.
| Tax brackets | Gross per week | Description |
| Lower Earnings Limit | £123 gross per week or less | If you pay your employee the LEL or below, there is nothing due to HMRC in respect of NI. This means the employee will not be contributing towards their NI record which can affect their eligibility to a state pension or benefits. |
| Bracket between Lower Earnings Limit and NI Threshold | £123 – £175 gross per week | If you pay your employee between these figures there is nothing due to HMRC in respect of NI. |
| Employer’s (Secondary) NI Threshold | £175 gross per week or more | If you pay your employee £175 or more and they are on a standard NI code, there will not be an Employee NI deduction, but Employer NI will be due |
| Employee’s (Primary) NI Threshold | £242 gross per week or more | If you pay your employee £242 or more you must now deduct National Insurance on behalf of your employee, as well as pay Employer’s NI. |
| Tax Threshold | Over £242 gross per week | Based on the standard tax free allowance for this year of £12,570, if you pay your employee £242 or more you must now also deduct tax from your employee. |
Please note, these figures are not applicable if you are based outside of England. For the current Government rates for Wales and Scotland, please click here.
Tax and NI Payments
If your Tax and National Insurance bill falls below £1,500 per month you can pay your liabilities to HMRC on a quarterly basis. If your monthly liability bill exceeds £1,500 per month, you must pay HMRC on a monthly basis.
Please be advised that late payments can result in hefty fines and interest being applied.
| HMRC Payment Deadlines | Financial Quarter | Months Covered |
| 19th July | 1 | Apr, May, Jun |
| 19th October | 2 | Jul, Aug, Sep |
| 19th January | 3 | Oct, Nov, Dec |
| 19th April | 4 | Jan, Feb, Mar |
Minimum Wage
The National Minimum Wage changes every October, the National Living Wage changes every April.
| Age | Hourly Rate |
| Aged 21 and above (national living wage rate) | £11.44 |
| Aged 18 to 20 inclusive | £8.60 |
| Aged under 18 (but above compulsory school leaving age) | £6.40 |
| Apprentices aged under 19 | £6.40 |
| Apprentices aged 19 and over but in the first year of their apprenticeship | £6.40 |
Pension Contribution
The minimum percentages for pension contributions in the 24/25 financial year, are as shown below.
| Period | Employer | Employee | Government | Total |
| 6th April 2024 – 5th April 2025 | 3% | 4% | 1% | 8% |
Statutory Maternity Pay (SMP)
The first 6 weeks of SMP are paid at 90% of average gross weekly earnings. The remaining weeks of the maternity pay period (up to a maximum of 33 weeks) are paid at the current SMP rate of £184.03 gross per week, or 90% of the employee’s weekly earnings, whichever is lower.
Statutory Sick Pay (SSP)
The 2024-25 rate of SSP is £116.75 gross per week. The first 3 consecutive days of illness are unpaid as SSP starts on the fourth consecutive day of illness and can be paid for up to 28 weeks.
Benefits in Kind
Certain benefits may incur Class 1a employer NIC payment, which is calculated at 13.8% of the benefits value. These will need to be declared to HMRC via a P11d submission, following the end of the tax year.
Last updated in March 2024