Tax Rates, Thresholds and Student Loans 2023-2024
- March 16, 2023
- Posted by: Hannah Ingram
- Categories: Legislation Updates, Pay, Reward & Benefits
New tax rates and thresholds have been announced for the UK for 2023-2024.
Useful information for payroll and employers for the coming year regarding personal allowance, tax changes and student loan thresholds and rates.
Personal Tax Allowance
The standard employee personal allowance for the 2023-2024 tax year is £12,570 (£242 per week, £1,048 per month). This has been frozen at the 2022/2023 rate. With extra allowances for some married and blind people and smaller allowances for those over £100,000.
The current tax year started on 6 April 2022 and ends 5 April 2023.
England and NI Tax Rates for 2023-2024
For annual earnings above the PAYE threshold.
- Basic Tax Rate 20% Up to £37,700
- High Tax Rate 40% From £37,701 to £125,140
- Additional Tax rate 45% Above £125,140
Scottish Tax Rates for 2023-2024
- Starter Tax Rate 19% Up to £2,162
- Basic Tax Rate 20% From £2,163 to £13,118
- Intermediate Tax Rate 21% From £13,119 to £31,092
- High Tax Rate 42% From £31,093 to £125,140
- Top tax rate 47% Above £125,140
The main changes here are on the two higher tiers of tax.
Wales Tax Rates for 2023-2024
- Basic Tax Rate 20% Up to £37,700
- High Tax Rate 40% From £37,701 to £125,140
- Additional Tax rate 45% Above £125,140
Income Tax rates and thresholds remain subject to parliamentary approval.
Student Loan Rates for 2023-2024
The annual threshold will change to the following:
Plan 1 – £22,015 – 9% Rate
Plan 2 – £27,295 – 9% Rate
Plan 4 – £27,660 – 9% Rate
Postgraduate – £21,000 – 6% Rate
Payroll Support: Outsourced and Fully Managed
We offer different options for payroll support to take the pain out of payroll admin whilst keeping you up to date and compliant. We can also help with your P11D forms. With lots of payroll changes in April 2023 and beyond it’s good to know there is support available.
Outsourced payroll includes:
➡ Fully compliant payroll
➡ 15+ years of payroll experience
➡ Full reporting
Reach out to us to set up a chat. We’re always here as a soundboard if you need us.
