On 6th March 2024 the UK chancellor, Jeremy Hunt, revealed his pre-election Spring budget for 2024. Nothing ground breaking but a few notable things have changed. This is what the 2024/25 tax rates are likely to be for self employed people in the UK.

The 2024/25 tax year in the UK runs from 6th April 2024 to 5th April 2025. Tax returns for this tax year are generally due by 31st January 2026. Still no sign of Class 2 NI being scrapped, as suggested many times over the last 10 years or so. Instead another consultation is being launched. Why is it so complicated to scrap this pointless tax? Limited companies are still stuck with the insane 25% corporation tax rate.

Here are some of the most common at-a-glance figures you might find useful for the tax year. As the budget has only just been announced a lot of these figures are still provisional.

2024/25 Tax Rates for small businesses in the UK

  • Tax Year:  6th April 2024 to 5th April 2025
  • Tax Return Deadline:  31st January 2026
  • Personal Allowance:  £12,570 (visit this page)
  • Basic Tax Rate:  20% (£12,571-£50,270)
  • Higher Tax Rate:  40% (£50,271-£150,000)
  • Additional Tax Rate: 45% (over £150,000)
  • Dividend Rate *: 8.75%
  • Dividend Allowance: £1,000 (visit this page)
  • Personal Savings Allowance *:  £1,000 (visit this page)
  • Trading Allowance:  £1,000 (visit this page)
  • Property Allowance:  £1,000 (visit this page)

* For basic rate tax payers.

2024/25 National Insurance Rates for small businesses in the UK

  • Class 2 Small Profits Threshold: £6,725 – TBC
  • Class 2 Lower Profits Threshold: £12,570 – TBC
  • Class 2 Rate per week:  £3.45 – TBC
  • Class 4 Lower Profits Threshold: £12,570 – TBC
  • Class 4 NI Rate: 6% – TBC
  • Class 4 Rate above £50,270: 2% – TBC
  • For full details and past rates visit this page

Other useful information for small businesses in 2024/25 tax year

  • VAT threshold:  £90,000 turnover from April 2024
  • Standard VAT rate:  20%
  • Corporation Tax Small Profit Rate: 19% (under £50,000 taxable profits) *
  • Corporation Tax Main Rate: 25% (over £250,000 taxable profits) *
  • Annual Investment Allowance:  £1m
  • Cash Basis Limit:  £150,000 turnover (visit this page)
  • Payment on Account threshold: £1,000 total tax bill (visit this page)
  • State Pension Age: 67/68 (visit this page)
  • Qualifying Years Required for Full State Pension: 35 (visit this page)

* Visit this page for more information about Corporation Tax rates. Marginal relief may be available from £50,000 to £250,000 profits but at the time of writing it’s not entirely clear how this will work. Calculator here.

Please note that the above information is just intended as an ‘at-a-glance’ quick summary summary. Please visit the relevant links for full details. You should always seek professional guidance from a qualified accountant.

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Last Updated on 7 March 2024 by Andy Mac