01993 775063
info@brownsaccountancy.co.uk
01993 775063
info@brownsaccountancy.co.uk
BR - All income is taxed at the basic rate (currently 20%).
OT - All income is taxed at the appropriate rate with no personal allowance. This is used often where there is a 2nd job.
DO - All income is taxed at the Higher Rate of tax (currently 40%). Often used for a 2nd job or pension.
D1 - All income is taxed at the additional rate of tax (currently 45%). Often used for a 2nd job or pension.
NT - No tax is taken from income.
L - Basic Personal Allowance has been applied.
T - HMRC need to review the code.
M - Marriage Allowance - you've received 10% of your partner's Personal Allowance
N - Marriage Allowance - you've transferred 10% of your Personal Allowance to your partner
K - Total allowances are less than total deductions, effectively a negative code.
S - Your income is taxed using the rates in Scotland
C - Your income is taxed using the rates in Wales
Note: Notices of codings are no longer copied to your Tax Agent due to HMRC cost cutting measures so please ensure you provide your agent with a copy so that they can check that the correct code is being applied.
| 2024/25 | Taxable Income | Income Rate | Dividend Rate |
|---|---|---|---|
| Starting Savings Rate * | 0 - 5,000 | 0% | 0% |
| Basic Rate | 0 - 37,700 | 20% | 8.75% |
| Higher Rate | 37,701- 125,140 | 40% | 33.75% |
| Additional Rate | > 125,140 | 45% | 39.35% |
Child Benefit charge is 1% of benefit for each £200 of income over £60,000
* The starting savings rate only applies to savings income. If an individual's taxable non-savings income is above the starting rate limit, then the starting rate for savings will not be available for savings income.
Dividend Allowance £500 (2023/24 £1,000) effectively taxed at 0%
For 2024/25 for Scottish taxpayers different rates and thresholds apply
| 2023/24 | Taxable Income | Income Rate | Dividend Rate |
|---|---|---|---|
| Starting Savings Rate * | 0 - 5,000 | 0% | 0% |
| Basic Rate ** | 0 - 37,700 | 20% | 8.75% |
| Higher Rate | 37,701- 125,140 | 40% | 33.75% |
| Additional Rate | > 125,140 | 45% | 39.35% |
* The starting savings rate only applies to savings income. If an individual's taxable non-savings income is above the starting rate limit the 0% starting rate will not apply.
** For 2021/22 for Scottish taxpayers the basic rate band is £31092 (2020/21 £30,930). This applies only to non-savings, non-dividend income.
| Income Tax Reliefs | 2024/25 | 2023/24 |
|---|---|---|
| Personal Allowance | 12,570 | 12,570 |
| Personal Allowance – if born before 6/4/1935 | 12,570 | 12,570 |
| (reduce PA by £1 for every £2 adjusted net income over £100,000) | ||
| Married Couple's Allowance (relief 10%) if born before 6/4/1935 | 11,080 | 10,375 |
| Married Couple's Allowance (relief 10%) minimum amount | 4,280 | 4,010 |
| Age Allowance Income Limit - (reduce allowance by £1 for every £2 of adjusted net income over threshold) | 37,000 | 34,600 |
| Transferable Tax allowance for married couples & civil partners | 1,260 | 1,260 |
| Dividend Allowance (0% rate to income within the allowance) | 500 | 1,000 |
| Savings Allowance – Basic rate taxpayers (0% rate to income within the allowance) | 1,000 | 1,000 |
| Savings Allowance – Higher rate taxpayers (0% rate to income within the allowance) | 500 | 500 |
| Trading Allowance | 1,000 | 1,000 |
| Property Income Allowance | 1,000 | 1,000 |
| Rent a Room limit | 7,500 | 7,500 |
| Corporation Tax Rates | 2024/25 | 2023/24 |
|---|---|---|
| Corporation Tax - main rate (where profits > £250,000) | 25% | 25% |
| Corporation Tax - small profits rate (where profits > £50,000) | 19% | 19% |
| Capital Gains Tax | 2024/25 | 2023/24 |
|---|---|---|
| Annual exemption | 3,000 | 6,000 |
| Tax rate – to basic rate limit | 10% | 10% |
| Tax rate – above basic rate | 20% | 20% |
| Tax rate – to basic rate limit (on residential property) | 18% | 18% |
| Tax rate – above basic rate limit (on residential property) | 28% | 28% |
| Business Asset Disposal Relief – up to lifetime limit of £1 million | 10% | 10% |
| Value Added Tax | 2024/25 | 2023/24 |
|---|---|---|
| VAT Registration Threshold | 90,000 | 85,000 |
| Rate | 20% | 20% |
31 July 2024 - 2nd payment on account for 2024/25
5 October 2024 - Deadline for notifying HMRC of new sources of income if no tax return issued for 2023/24
31 October 2024 - Deadline for submission of 2023/24 paper returns.
31 January 2025 - Deadline for filing electronic returns for 2024/25. Balancing payment for 2023/24 and 1st payment on account for 2024/25
19 May - Final RTI submission due to HMRC for year to 5 April 2024
31 May - Forms P60 due to employees for year to 5 April 2024
6 July - Forms P11d, P9d, P11d (b) due to HMRC (with copies to employees) for year ended 5 April 2024
19 July - Class 1A NIC due for year ended 5 April 2024
19 October - Class 1B NIC due for year ended 5 April 2024