Legislation – Rates and Thresholds 2023/24

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

BandFromToRate (%)
Basic Rate0.0137,700.0020.00
Higher Rate37,700.01125,14040.00
Additional Rate125,141Excess45.00


BandFromToRate (%)
Basic Rate0.0137,700.0020.00
Higher Rate37,700.01125,14040.00
Additional Rate125,141Excess45.00


BandFromToRate (%)

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.

TypeWeekly £Monthly £Annual £Rate %
Plan Type 1423.361834.5822,0159.00
Plan Type 2524.902,274.5827,295.009.00
Plan Type 4*531.922,30527,660.009.00

*Only available to students with a Student Loan issued by the Student Awards Agency Scotland.



Postgraduate Student Loans

TypeWeekly £Monthly £Annual £Rate %

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 LimitWeeklyMonthlyyearly
Lower Earnings Limit (LEL)123.00533.006,396.00
Primary Threshold (PT)242.001048.0012,570.00
Secondary Threshold (ST)175.00758.009,100.00
Freeports Upper Secondary Threshold481.002,083.0025,000.00
Upper Earnings Limit (UEL)967.004,189.0050,270.00
Upper Secondary Threshold (UST)967.004,189.0050,270.00
Apprentice Upper Secondary Threshold (AUST)967.004,189.0050,270.00
Veterans Upper Secondary Threshold967.004,189.0050,270.00

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:


CategoryAt LELLEL to PTPT to UELAbove UEL
B (Married Women)nil0%5.85%2.00%
C (Over State Pension Age)nilnilnilnil
F (Freeport Standard)nil0%12.00%2.00%
H (Apprentice Under 25)nil0%12.00%2.00%
I (Freeport MWRRE)nil0%5.85%2.00%
J (Deferment)nil0%2.00%2.00%
L (Freeport Deferment)nil0%2.00%2.00%
M (Under 21)nil0%12.00%2.00%
S (Freeport over State Pension Age)nilnilnilnil
V (Veterans Standard)nil0%12.00%2.00%
Z (Under 21, Deferred)nil0%2.00%2.00%



B (Married Women)nil0%13.80%13.80%13.80%
C (Over State Pension Age)nil0%13.80%13.80%13.80%
F (Freeport Standard)nil0%0%13.80%13.80%
H (Apprentice Under 25)nil0%0%0%15.05%
I (Freeport MWRRE)nil0%0%13.80%13.80%
J (Deferment)nil0%13.80%13.80%13.80%
L (Freeport Deferment)nil0%0%13.80%13.80%
M (Under 21)nil0%0%0%13.80%
S (Freeport over State Pension Age)nil0%0%13.80%13.80%
V (Veterans Standard)nil0%0%0%13.80%
Z (Under 21, Deferred)nil0%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:

PaymentMinimum weekly earnings £Higher rate %The standard rate is the lesser of
SMP and SAP120.0090.00£172.48 or 90%
SPP, SBP, SPPA and ShPP120.00N/A£172.48 or 90%

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 charge2023 to 2024 rate
Apprenticeship Levy Allowance£15,000
Apprenticeship Levy charge0.5%


Automatic Enrolment & Pensions

Pay reference periodLower level of qualifying earningsEarnings trigger for automatic enrolmentQualifying Earnings Upper Limit
1 week120.00192.00967.00
1 month520.00833.004,189.00


Annual Pension Rates are:

Qualifying Earnings
Lower Threshold
Qualifying Earnings
Upper Threshold

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 EmissionsElectric Range (miles)%
Each additional 5g/km+1%

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 less2428
1401 to 2000cc3537
Over 2000cc3737
 All rotary engines3737

Cars registered before 1st January 1998

Engine Size (cc)Other (%)
1400cc or less24
1401 to 2000cc35
Over 2000cc37

Car Fuel Benefit (2023/2024)

The charge is £27,800


Current Approved Mileage Allowance Rates

First 10,000 milesEach subsequent mile
Privately owned car45p25p
Bicycle rate20p20p
Motorcycle rate24p24p
Passenger rate (each)5p5p


HMRC Advisory Fuel Rates from 1st March 2023 (pence per mile)

1400cc or less13p8p
1401 to 2000cc15p10p
Over 2000cc22p15p


1400cc or less11p
1401 to 2000cc13p
Over 2000cc16p

National Minimum Wage

Workers agedRates 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.)
(Aged under 19, or, 19+ and in the first year of their apprenticeship)


Construction Industry Scheme
Registered Rate (Matched Net)20%
Unregistered Rate30%
VAT Rate20%


Key dates over year end

On or before your employees’ pay daySend your final Full Payment Submission (FPS) of the year.
5th AprilLast day of the old tax year.
6th AprilFirst day of the new tax year.
By 19 AprilDeadline for your final FPS for the previous tax year.
From 20 AprilIf 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 MayAny staff employed by you on or after 5 April 2023 must have their P60s.
By 6 JulyReport employee expenses and benefits if they aren’t being processed through payroll.
By 22 JulyPay Class 1A NIC on P11D benefits.


Scottish Earnings Arrestment Orders

Weekly Rates

BandwidthBand RateMinimum Amount
Not exceeding £130.730%0.00
Exceeding £130.73 but not exceeding £472.5419%£4.00 or 19% of earnings exceeding £130.73, whichever is the greater
Exceeding £472.54 but not exceeding £710.4223%£64.94 plus 23% of earnings exceeding £472.54
Exceeding £710.4250%£119.66 plus 50% of earnings exceeding £710.42

Monthly Rates

Not exceeding £566.510%0.00
Exceeding £566.51 but not exceeding £2,047.6519%£15.00 or 19% of earnings exceeding £566.51, whichever is the greater
Exceeding £2,047.65 but not exceeding £3,078.4723%£281.42 plus 23% of earnings exceeding £2,047.65
Exceeding £3,078.4750%£518.51 plus 50% of earnings exceeding £3,078.47

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