This guide explains the main UK tax rates and thresholds for the 2024/25 tax year, including Income Tax, the Personal Allowance, National Insurance, student loan repayment thresholds and VAT.
The 2024/25 tax year ran from 6 April 2024 to 5 April 2025. These figures are useful if you are checking an old payslip, reviewing a P60, comparing historic take-home pay, completing tax records, or using SalaryHub calculators for a previous tax year.
This page focuses on the England, Wales and Northern Ireland tax model used by SalaryHub. Scottish Income Tax bands can differ for some types of income.
2024/25 Tax Year Summary
- The standard Personal Allowance was £12,570.
- The default tax code was 1257L.
- The basic rate Income Tax band applied at 20%.
- The higher rate applied at 40%.
- The additional rate applied at 45%.
- Employee National Insurance was charged at 8% between the main thresholds.
- Self-employed Class 4 National Insurance was charged at 6% between the main thresholds.
- The standard VAT rate was 20%.
Income Tax Rates and Bands for 2024/25
Income Tax is charged on taxable income after your Personal Allowance and any relevant adjustments have been applied. For most employees, Income Tax is deducted automatically through PAYE. For self-employed people, Income Tax is usually worked out through Self Assessment based on taxable profits.
The 2024/25 Income Tax bands used by SalaryHub are shown below. These are the main bands for England, Wales and Northern Ireland.
| Income Tax band | Taxable income | Rate |
|---|---|---|
| Basic Rate | £0 to £37,700 | 20% |
| Higher Rate | £37,700 to £125,140 | 40% |
| Additional Rate | £125,140 and above | 45% |
UK Income Tax is progressive. This means different slices of taxable income are taxed at different rates. If your income moved into the higher rate band in 2024/25, only the part of your taxable income within that higher rate band was charged at the higher rate.
This is important when reviewing old payslips or comparing salaries. A higher salary may increase your tax bill, but it does not mean all of your income is taxed at the highest rate you reach.
Personal Allowance for 2024/25
The standard Personal Allowance for 2024/25 was £12,570. This was the amount most people could earn before paying Income Tax.
The default tax code in SalaryHub’s 2024/25 configuration is 1257L. For many employees, this indicated that the standard Personal Allowance was being applied through PAYE.
The Personal Allowance started to reduce when adjusted net income exceeded £100,000. The reduction was £1 of allowance for every £2 of adjusted net income above that level.
This taper can create a high effective tax rate for people earning above £100,000. It is one reason why pension contributions, salary sacrifice and Gift Aid are often important when reviewing income around this threshold.
Employee National Insurance Thresholds for 2024/25
National Insurance is separate from Income Tax. Employees usually pay employee National Insurance through payroll, and it has its own thresholds and rates.
| Employee NI item | 2024/25 value |
|---|---|
| Primary threshold | £12,570 |
| Upper earnings limit | £50,270 |
| Main employee NI rate | 8% |
| Additional employee NI rate | 2% |
In 2024/25, employee National Insurance was charged at 8% between the primary threshold and upper earnings limit, then at 2% above the upper earnings limit.
National Insurance can make a noticeable difference to take-home pay, especially for employees whose earnings sit mainly within the main employee NI band.
Self-Employed National Insurance Thresholds for 2024/25
Self-employed workers are usually taxed on profits rather than salary. SalaryHub’s self-employed calculations use Class 4 National Insurance thresholds and rates for the selected tax year.
| Self-employed NI item | 2024/25 value |
|---|---|
| Class 4 lower profits limit | £12,570 |
| Class 4 upper profits limit | £50,270 |
| Class 4 main rate | 6% |
| Class 4 additional rate | 2% |
In 2024/25, self-employed Class 4 National Insurance was charged at 6% between the lower and upper profits limits, then at 2% above the upper profits limit.
When comparing employment and self-employment, it is important to remember that National Insurance is calculated differently. A self-employed profit figure and an employed salary of the same amount may not produce identical take-home pay.
Student Loan Repayment Thresholds for 2024/25
Student loan repayments are based on your plan type and income. They are calculated on income above the relevant threshold, not on the full loan balance.
| Student loan plan | Annual threshold | Repayment rate |
|---|---|---|
| Plan 1 | £24,990 | 9% |
| Plan 2 | £27,295 | 9% |
| Plan 3 / Postgraduate Loan | £21,000 | 6% |
| Plan 4 | £31,395 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Most undergraduate student loan plans use a repayment rate of 9% above the relevant threshold. Postgraduate Loans use a repayment rate of 6% above their threshold.
For example, a Plan 2 borrower in 2024/25 only made Plan 2 repayments once income was above £27,295. The repayment was then based on the amount above that threshold.
VAT Thresholds for 2024/25
VAT is mainly relevant to businesses and self-employed people. It does not usually affect employee take-home pay directly, but it is an important threshold for anyone running a business.
| VAT item | 2024/25 value |
|---|---|
| VAT registration threshold | £90,000 |
| VAT deregistration threshold | £88,000 |
| Standard VAT rate | 20% |
If taxable turnover exceeded the VAT registration threshold, a business may have needed to register for VAT. The standard VAT rate in this configuration was 20%.
How These Thresholds Affect Take-Home Pay
The 2024/25 tax thresholds affected how much of a salary, bonus or self-employed profit became take-home income. Gross pay is the headline figure, but net pay depends on deductions.
Common deductions include:
- Income Tax
- Employee or self-employed National Insurance
- Pension contributions
- Student loan repayments
- Other payroll deductions
This means two people with the same gross income could have different take-home pay. One may have a student loan, another may make larger pension contributions, and another may have a different tax code.
Tax year selection matters when using a calculator. A salary checked against 2024/25 thresholds may not produce exactly the same result as the same salary checked against 2025/26 or 2026/27 thresholds.
Comparing 2024/25 with Other Tax Years
The 2024/25 tax year is useful for historic salary comparisons because many people still need to check payslips, tax codes, P60s and student loan deductions from that period.
When comparing 2024/25 against newer years, pay particular attention to:
- Whether Income Tax thresholds changed
- Whether National Insurance rates changed
- Whether student loan thresholds increased
- Whether your salary or pension contributions changed
- Whether your tax code changed during the year
Even if the headline Income Tax rates look similar, small threshold or deduction changes can alter the final take-home pay figure.
Useful SalaryHub Calculators
- Salary Calculator 2024/25
- Income Tax Calculator 2024/25
- Student Loan Calculator 2024/25
- Bonus Pay Calculator 2024/25
- Take-Home Pay Over the Years Calculator
Estimate 2024/25 Take-Home Pay
Use SalaryHub’s calculators to estimate Income Tax, National Insurance, student loan repayments and net pay using the 2024/25 tax year thresholds.
Use the Salary CalculatorFrequently Asked Questions
What was the Personal Allowance for 2024/25?
The standard Personal Allowance for 2024/25 was £12,570.
What was the basic rate of Income Tax in 2024/25?
The basic rate of Income Tax was 20% on taxable income within the basic rate band.
What was the employee National Insurance rate in 2024/25?
Employee National Insurance was charged at 8% between the primary threshold and upper earnings limit, then at 2% above the upper earnings limit.
What was the Plan 2 student loan threshold in 2024/25?
The Plan 2 student loan threshold for 2024/25 was £27,295.
Why use a 2024/25 tax calculator?
A 2024/25 tax calculator is useful when checking old payslips, reviewing a P60, comparing historic salary offers, checking student loan deductions or estimating take-home pay for that tax year.
Is this guide for Scottish taxpayers?
This guide uses the England, Wales and Northern Ireland Income Tax model used by SalaryHub. Scottish Income Tax bands can differ for some types of income.
Final Thoughts
The 2024/25 UK tax rates and thresholds are still useful for historic pay checks, payslip reviews, P60 comparisons and tax year calculations. Using the correct tax year matters because thresholds and rates can change over time.
SalaryHub’s tax year guides and calculators help connect the figures behind the calculation with the estimated take-home pay result, making it easier to understand how Income Tax, National Insurance, student loans and pension deductions affect your income.