Here is a reminder of the key tax changes which may affect you during the 2024/25 tax year, which started April 06, 2024.
Business Taxes
Changes to Business Rates
The small business multiplier will remain frozen for another year. The 75% Retail, Hospitality and Leisure relief will be extended for 2024/25. The standard multiplier will be uprated in line with September’s Consumer Prices Index.
The National Living Wage and National Minimum Wage
The new rates come into effect from April 1, 2024, and the NLW will be extended to 21 and 22 year olds.
| Age | April 1, 2023 | April 1, 2024 | |
| National Living Wage | 23+ | £10.42 | – |
| 21+ | – | £11.44 | |
| 21-22 | £10.18 | – | |
| National Minimum Wage | 18-20 | £7.49 | £8.60 |
| Under 18 | £5.28 | £6.40 | |
| Apprentice | £5.28 | £6.40 | |
Apprentices are entitled to the apprentice rate if they are either:
- Aged under 19
- Aged 19 or over but in the first year of their apprenticeship
Apprentices are entitled to the minimum wage for their age if they are both:
- Aged 19 or over
- Have completed the first year of their apprenticeship
Personal Taxes
Capital Gains Tax Allowance
In 2023/24 you can make gains of up to £6,000 before paying any tax, from April 2024 the capital gains tax allowance will be reduced to £3,000.
Reduced Dividend Allowance
Whilst the tax rates on divided income remain the same, the Dividend Allowance will reduce from £1,000 to £500 from April 6, 2024.
ISA Limits Frozen
The limits on ISAs, Junior ISAs, Lifetime ISAs and Child Trust Funds have been frozen for 2024/25.
From April 2024 changes will permit multiple subscriptions to ISAs of the same type ever year and to allow partial transfers of ISA funds in-year between providers.
Pensions Lifetime Allowance
The Pensions Lifetime Allowance will be abolished from the 2024/25 tax year. Changes will be implemented to clarify the taxation of lump sums and lump sum death benefits.
NIC Changes
As per the Autumn Statement the main rate of Class 1 employee NICS was cut from 12% to 10% effective from January 6, 2024. From April 6 reduced to 8%.
From April 6, 2024, self employed workers with profits above £12,570 will no longer pay Class 2 NICs but will continue to receive access to contributory benefits such as State Pension.
For those self employed workers with profits between £6,725 and £12,570, access to contributory benefits will continue through a National Insurance credit, without paying NICs.
Self employed workers with profits under £6,725 and others who pay Class 2 NICs voluntarily to access contributory benefits will to be able to do so.
Additionally, from April 6, 2024, Class 4 self-employed NICs will be cut from 9% to 6%.