Expert financial management for small businesses and sole traders
Rates and Allowances
Minimum Wage from 1st April 2024
| Age | Hourly Rate |
| National Living Wage (Over 20) | £11.44 |
| 18-20 | £8.60 |
| Under 18 | £6.40 |
| Apprentices under 19, or 19 and over in 1st year | £6.40 |
Income Tax Allowances
| 2024-25 | 2023-24 | |
|---|---|---|
| Personal Allowance | £12,570 | £12,570 |
| Income limit for Personal Allowance | £100,000 | £100,000 |
| Maximum amount of Married Couple’s Allowance | £11,080 | £10,375 |
| Minimum amount of Married Couple’s Allowance | £4,280 | £4.010 |
| Blind Person’s Allowance | £3,070 | £2,870 |
| Dividend Allowance | £500 | £1,000 |
| Personal Savings Allowance (Basic rate taxpayers) |
£1,000 | £1,000 |
| Personal Savings Allowance (Higher rate taxpayers) |
£500 | £500 |
Income Tax Rates
| Taxable Income | Income Tax Rate | Dividend Rate |
| 2024-25 | ||
| £0 – £37,500 | 20% | 8.75% |
| £37,501 – £125,140 | 40% | 33.75% |
| Over £125,140 | 45% | 39.35% |
| 2023-24 | ||
| £0 – £37,700 | 20% | 8.75% |
| £37,701 – £125,140 | 40% | 33.75% |
| Over £125,140 | 45% | 39.35% |
Capital Gains Tax
| Annual Exempt Amounts 2024-25 | ||
| Individuals, disabled trusts, personal representatives (for 2 years after year of death) |
£3,000 | |
| Other trusts | £1,500 | |
| Rates 2024-25 | ||
| Individuals: Standard rate | 10% | |
| Individuals: Higher rate | 20% | |
| Personal representatives and trustees | 20% | |
| Gains qualifying for business asset disposal relief | 10% | |
Corporation Tax
| Rate | 2024-25 | 2023-24 |
|---|---|---|
| Main Rate of Corporation Tax | 25% | 25% |
| Small Profits Rate | 19% | 19% |
VAT
| 2024-25 | |
| Standard rate | 20% |
| Reduced rate | 5% |
| Registration threshold | £90,000 |
| De-registration threshold | £88,000 |
National Insurance Rates
| Weekly Threshold | |||
| 2024-25 | 2023-24 | Amount | |
| Class 1 Primary (employees) | £123-£1242* | £123-£242* | 0% |
| £242-£967 | 12% | ||
| £242-£967 | 8% | ||
| Above £967 | Above £967 | 2% | |
| Class 1 Secondary (employers) | Above £175 | Above £175 | 13.8% |
| Annual Profit | |||
| 2024-25 | 2023-24 | Amount | |
| Class 2 (self employed) | £6,725 | £6,725 | £3.45 per week |
| Class 4 (self employed) | £12,570-£50,270 | 9% | |
| £9,880-£50,270 | 6% | ||
| Above £50,270 | Above £50,270 | 2% | |
| *Note: No NIC are paid, only a notional payment to protect contributory benefit entitlement | |||
| Employment Allowance £5,000 per year | |||
Mileage Allowances
| First 10,000 business miles in the tax year | Each business mile over 10,000 in the tax year | |
|---|---|---|
| Cars and vans | 45p | 25p |
| Motor cycles | 24p | 24p |
| Bicycles | 20p | 20p |
Income Tax Codes
| L | Used if you are eligible for the basic Personal Allowance |
| P | Used for people born between 6th April 1938 and 6th April 1948
who are eligible for the full Personal Allowance |
| Y | Used for people born before 6th April 1938 who are eligible for the
full Personal Allowance |
| T | Used if you have an income related reduction to your Personal Allowance |
| K | Used when your total allowances are less than your total deductions, usually used if you receive company benefits. |
| BR | Used if all your income is taxed at the Basic Rate (20%) usually used if you have a second job |
| 0T | Used if all your allowances have been used or reduced to nil. Also used if you have started a new job and have not filled in a P45 or P46. |
| D0 | Used (usually for a second job or pension) when all your income is taxed at the Higher Rate (40%) |
| D1 | Used (usually for a second job or pension) when all your income is taxed at the Additional Rate (50%) |
| NT | Used when no tax is to be deducted. |
| M | Marriage allowance, used if you’ve received a transfer of 10% of your partner’s personal allowance. |
| N | Marriage allowance, used if you’ve transferred 10% of your personal allowance to your partner. |