2024-25 tax year rates and allowances

Tax-free personal allowance – £12,570

Basic rate – 20% up to £37,700

Higher rate – 40% – from £37,701 to £125,140

Additional rate – 45% – above £125,140

Primary threshold – £12,570

Secondary threshold – £9,100

Employees and directors must pay NI Class 1 contributions at 8% and 2%

Employers pay NI Class 1 contributions at 13.8%

Ordinary rate – 8.75%

Upper rate – 33.75%

Additional rate – 39.35%

Dividends basic rate – £37,700 and a salary of £12,570

Tax-free allowance – £500

Pay £3,255 Income Tax to HMRC by 31 Jan 2026

Profits up to £50,000 – 19%

Profits above £50,000 to £250,000 will receive a tapered increase to 25%

Profits above £250,000 – 25%

It’s up to you to decide, because you control the company, but many will choose a salary of £12,570 for 2024/25

Employment allowance of £5,000 towards NIC if you have more than one employee and are eligible

Income is above £21,000 – repayment rate of 6%

National Minimum Wage – increasing from £10.42 to £11.44

Capital Gains Tax annual exemption – reducing to £3,000

The high income threshold for Child Benefit increases to £60,000

From April 2024 the eldest / only child will receive £25.60 per week, and additional children will receive £16.95 per week