Please note, whilst every effort has been made to ensure this information is correct, please check with HMRC if unsure.
Income Tax
The 2023/24 tax thresholds will be:
England and Northern Ireland
| Band | From | To | Rate (%) |
| Basic Rate | 0.01 | 37,700.00 | 20.00 |
| Higher Rate | 37,700.01 | 125,140 | 40.00 |
| Additional Rate | 125,141 | Excess | 45.00 |
Wales
| Band | From | To | Rate (%) |
| Basic Rate | 0.01 | 37,700.00 | 20.00 |
| Higher Rate | 37,700.01 | 125,140 | 40.00 |
| Additional Rate | 125,141 | Excess | 45.00 |
Scotland
| Band | From | To | Rate (%) |
| Starter | 0.01 | 2,162.00 | 19.00 |
| Basic | 2,162.01 | 13,118.00 | 20.00 |
| Intermediate | 13,118.01 | 31,092.00 | 21.00 |
| Higher | 31,092.01 | 125,140.00 | 42.00 |
| Top | 125,141 | Excess | 47.00 |
The Emergency Tax Code has been defined as ‘1257L’
The following tax codes are uplifted by:
- L – No change due to the Personal Allowance not changing
- M – No change due to the Personal Allowance not changing
- N – No change due to the Personal Allowance not changing
If HMRC have sent you a P9 (T) notice for individual employees, you must manually change the tax code on their employee record. You must not apply the tax code change until you’re ready to process the pay run that the tax code is effective from.
Student Loans
When you set up a student loan deduction for an employee, you must specify which plan they’re on.
This impacts all Scottish undergraduate loans for those who started university in or after 1998.
From 6 April 2021, borrowers with a Student Loan issued by the Student Awards Agency Scotland may need to be switched to Plan 4. Employers will be sent form SL1 to advise which employees need to change from Plan 1 to 4.
| Type | Weekly £ | Monthly £ | Annual £ | Rate % |
| Plan Type 1 | 423.36 | 1834.58 | 22,015 | 9.00 |
| Plan Type 2 | 524.90 | 2,274.58 | 27,295.00 | 9.00 |
| Plan Type 4* | 531.92 | 2,305 | 27,660.00 | 9.00 |
*Only available to students with a Student Loan issued by the Student Awards Agency Scotland.
Postgraduate Student Loans
| Type | Weekly £ | Monthly £ | Annual £ | Rate % |
| Standard | 403.84 | 1,750.00 | 21,000.00 | 6.00 |
You can find further information here: https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2023-to-2024
National Insurance
National Insurance Thresholds
The new earnings thresholds for Class 1 National Insurance calculations are effective from 6 April 2023.
| Earnings Limit | Weekly | Monthly | yearly |
| Lower Earnings Limit (LEL) | 123.00 | 533.00 | 6,396.00 |
| Primary Threshold (PT) | 242.00 | 1048.00 | 12,570.00 |
| Secondary Threshold (ST) | 175.00 | 758.00 | 9,100.00 |
| Freeports Upper Secondary Threshold | 481.00 | 2,083.00 | 25,000.00 |
| Upper Earnings Limit (UEL) | 967.00 | 4,189.00 | 50,270.00 |
| Upper Secondary Threshold (UST) | 967.00 | 4,189.00 | 50,270.00 |
| Apprentice Upper Secondary Threshold (AUST) | 967.00 | 4,189.00 | 50,270.00 |
| Veterans Upper Secondary Threshold | 967.00 | 4,189.00 | 50,270.00 |
Employees must provide you with form CA2700 to confirm they qualify for Category L NIC’s.
NI Category V can be used for 12 months starting with the veteran’s first day of civilian employment after leaving HM armed forces and ending 12 months later.
NI Rates
Employee and Employer Rates are as follows:
Employee
| Category | At LEL | LEL to PT | PT to UEL | Above UEL |
| A | nil | 0% | 12.00% | 2.00% |
| B (Married Women) | nil | 0% | 5.85% | 2.00% |
| C (Over State Pension Age) | nil | nil | nil | nil |
| F (Freeport Standard) | nil | 0% | 12.00% | 2.00% |
| H (Apprentice Under 25) | nil | 0% | 12.00% | 2.00% |
| I (Freeport MWRRE) | nil | 0% | 5.85% | 2.00% |
| J (Deferment) | nil | 0% | 2.00% | 2.00% |
| L (Freeport Deferment) | nil | 0% | 2.00% | 2.00% |
| M (Under 21) | nil | 0% | 12.00% | 2.00% |
| S (Freeport over State Pension Age) | nil | nil | nil | nil |
| V (Veterans Standard) | nil | 0% | 12.00% | 2.00% |
| Z (Under 21, Deferred) | nil | 0% | 2.00% | 2.00% |
Employer
| Category | At LEL | LEL to ST | ST to FUST | FUST to UEL/UST/AUST/VUST | Above UST/AUST/VUST |
| A | nil | 0% | 15.05% | 15.05% | 15.05% |
| B (Married Women) | nil | 0% | 13.80% | 13.80% | 13.80% |
| C (Over State Pension Age) | nil | 0% | 13.80% | 13.80% | 13.80% |
| F (Freeport Standard) | nil | 0% | 0% | 13.80% | 13.80% |
| H (Apprentice Under 25) | nil | 0% | 0% | 0% | 15.05% |
| I (Freeport MWRRE) | nil | 0% | 0% | 13.80% | 13.80% |
| J (Deferment) | nil | 0% | 13.80% | 13.80% | 13.80% |
| L (Freeport Deferment) | nil | 0% | 0% | 13.80% | 13.80% |
| M (Under 21) | nil | 0% | 0% | 0% | 13.80% |
| S (Freeport over State Pension Age) | nil | 0% | 0% | 13.80% | 13.80% |
| V (Veterans Standard) | nil | 0% | 0% | 0% | 13.80% |
| Z (Under 21, Deferred) | nil | 0% | 0% | 0% | 13.80% |
Health and social care levy
The planned update for Health and social care levy will no longer be applied in 2023/24.
Statutory Payments
From 6 April 2023, the statutory sick pay (SSP) rate is £109.40 per week.
The 2023/2024 rates for statutory maternity pay (SMP), statutory paternity pay (SPP), statutory paternity pay adoption (SPPA), shared parental pay (ShPP) and statutory adoption pay (SAP) are as follows:
| Payment | Minimum weekly earnings £ | Higher rate % | The standard rate is the lesser of |
| SMP and SAP | 120.00 | 90.00 | £172.48 or 90% |
| SPP, SBP, SPPA and ShPP | 120.00 | N/A | £172.48 or 90% |
| SSP | 123.00 | £109.40 |
Statutory Parental Bereavement Pay
From 6 April 2022 Statutory Parental Bereavement Pay will be available in Northern Ireland. Previously this statutory payment was only available in England, Scotland and Wales.
Employment Allowance
The Employment Allowance will remain at £5,000 in 2023/24. If you’re eligible for Employment Allowance you need to submit a new claim.
Small employers’ relief
If you’re eligible for small employers’ relief, you can claim when you record your payment to HMRC and submit an EPS in the new tax year.
You can reclaim 103% if your business qualifies for Small Employers’ Relief. You get this if you paid £45,000 or less in Class 1 National Insurance (ignoring any reductions like Employment Allowance) in the last complete tax year before:
- the ‘qualifying week’ – the 15th week (Sunday to Saturday) before the week of the due date
- the ‘matching week’ – the week (Sunday to Saturday) your employee was told they’d been matched with a child by the adoption agency
- the date on the official notification if your employee is adopting a child from another country
- the ‘qualifying week’ – the week (Sunday to Saturday) before the death of the child or stillbirth, for Statutory Parental Bereavement Pay
If you’re unsure whether or not you’re eligible, contact HMRC.
Apprenticeship Levy
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.
| Allowance or charge | 2023 to 2024 rate |
| Apprenticeship Levy Allowance | £15,000 |
| Apprenticeship Levy charge | 0.5% |
Automatic Enrolment & Pensions
| Pay reference period | Lower level of qualifying earnings | Earnings trigger for automatic enrolment | Qualifying Earnings Upper Limit |
| 1 week | 120.00 | 192.00 | 967.00 |
| 1 month | 520.00 | 833.00 | 4,189.00 |
| Annual | 6,240.00 | 10,000.00 | 50,270.00 |
Annual Pension Rates are:
| Qualifying Earnings Lower Threshold | Auto-enrolment Trigger | Qualifying Earnings Upper Threshold |
| 6,240 | 10,000 | 50,270 |
From 6 April 2019 onwards Employer Minimum Contribution is 3%, Total Minimum Contribution is 8% (Including 5% Employee Contribution)
Company Cars
Appropriate Percentage (2023/2024)
| Add 4% to a maximum of 37% for Diesel Cars, but not Diesel cars meeting RDE2 standard |
Cars registered from 6 April 2023
| CO2 Emissions | Electric Range (miles) | % |
| 0g/km | N/A | 2% |
| 1-50g/km | >129 | 2% |
| 1-50g/km | 70-129 | 5% |
| 1-50g/km | 40-69 | 8% |
| 1-50g/km | 30-39 | 12% |
| 1-50g/km | <30 | 14% |
| 51-54g/km | N/A | 15% |
| Each additional 5g/km | +1% | |
| Maximum | 37% | |
Note: Diesel Cars that meet Real Driving Emissions Step 2 (RDE2) regulation, are exempt from 4% Supplement i.e. same as
Electric and Petrol (%)
Cars registered on or after 1st January 1998
| Engine Size (cc) | Other (%) | Diesel (%) |
| 1400cc or less | 24 | 28 |
| 1401 to 2000cc | 35 | 37 |
| Over 2000cc | 37 | 37 |
| All rotary engines | 37 | 37 |
Cars registered before 1st January 1998
| Engine Size (cc) | Other (%) |
| 1400cc or less | 24 |
| 1401 to 2000cc | 35 |
| Over 2000cc | 37 |
Car Fuel Benefit (2023/2024)
The charge is £27,800
Current Approved Mileage Allowance Rates
| First 10,000 miles | Each subsequent mile | |
| Privately owned car | 45p | 25p |
| Bicycle rate | 20p | 20p |
| Motorcycle rate | 24p | 24p |
| Passenger rate (each) | 5p | 5p |
HMRC Advisory Fuel Rates from 1st March 2023 (pence per mile)
| Petrol | LPG | |
| 1400cc or less | 13p | 8p |
| 1401 to 2000cc | 15p | 10p |
| Over 2000cc | 22p | 15p |
| Diesel | ||||
| 1400cc or less | 11p | |||
| 1401 to 2000cc | 13p | |||
| Over 2000cc | 16p | |||
| National Minimum Wage | ||||
| Workers aged | Rates from 1 April 2023 | |||
| 23 and over | £10.42 | |||
| 21 to 22 years | £10.18 | |||
| 18 to 20 years | £7.49 | |||
| 16 – 17 (Those older than school leaving age and younger than 18; you’re under school leaving age until the end of summer term of the school year in which you turn 16.) | £5.28 | |||
| Apprentice (Aged under 19, or, 19+ and in the first year of their apprenticeship) | £5.28 | |||
| Construction Industry Scheme | |
| Registered Rate (Matched Net) | 20% |
| Unregistered Rate | 30% |
| VAT Rate | 20% |
Key dates over year end
| On or before your employees’ pay day | Send your final Full Payment Submission (FPS) of the year. |
| 5th April | Last day of the old tax year. |
| 6th April | First day of the new tax year. |
| By 19 April | Deadline for your final FPS for the previous tax year. |
| From 20 April | If you’ve had to make corrections to the previous tax year, you can now submit a supplementary FPS to HMRC to notify them. These changes used to be recorded as an Earlier Year Update (EYU). |
| By 31 May | Any staff employed by you on or after 5 April 2023 must have their P60s. |
| By 6 July | Report employee expenses and benefits if they aren’t being processed through payroll. |
| By 22 July | Pay Class 1A NIC on P11D benefits. |
Scottish Earnings Arrestment Orders
Weekly Rates
| Bandwidth | Band Rate | Minimum Amount |
| Not exceeding £130.73 | 0% | 0.00 |
| Exceeding £130.73 but not exceeding £472.54 | 19% | £4.00 or 19% of earnings exceeding £130.73, whichever is the greater |
| Exceeding £472.54 but not exceeding £710.42 | 23% | £64.94 plus 23% of earnings exceeding £472.54 |
| Exceeding £710.42 | 50% | £119.66 plus 50% of earnings exceeding £710.42 |
Monthly Rates
| Not exceeding £566.51 | 0% | 0.00 |
| Exceeding £566.51 but not exceeding £2,047.65 | 19% | £15.00 or 19% of earnings exceeding £566.51, whichever is the greater |
| Exceeding £2,047.65 but not exceeding £3,078.47 | 23% | £281.42 plus 23% of earnings exceeding £2,047.65 |
| Exceeding £3,078.47 | 50% | £518.51 plus 50% of earnings exceeding £3,078.47 |