Personal PAYE Allowances

Allowance 2022/23 2023/24 Change
Basic £12,570 £12,570 0
Blind Person's Allowance £2,600 £2,870  270
*An individual’s personal allowance is reduced where their income is above this limit. The allowance is reduced by £1 for every £2 above the limit.

Tax Brackets

Tax Rate 2022/23 2023/24 Change
Basic rate 20% TFA - £37,700 TFA - £37,700  no change
Higher Rate 40% £37,501 - £150,000 £37,501 - £125,140 -£24,860
Additional Rate 45%  £150,000  £125,141 -£24,860
NOTES:
TFA: Tax Free Allowance amount - you only start paying the basic rate of tax once your earnings go above your tax free allowance.
These rates are applied after your tax free allowance has been deducted from your gross wage.

No changes to the Basic Rate tax bracket and no increases in the Basic Personal Allowance means little defference on the personal tax front in 2021/23. Both the Higher and the Additional Rates see no change either for the coming tax year.

Change in take home pay after tax and NI

Source listentotaxman.com®
Gross Wage Net Pay 2022/23 Net Pay 2023/24 Difference
£10,000 £10,000 £10,000 +£0
£20,000 £17,570 £17,624 +£54
£30,000 £24,297 £24,424 +£127
£40,000 £31,024 £31,224 +£200
£50,000 £37,751 £38,024 +£273
£75,000 £52,278 £52,553 +£275
£100,000 £66,778 £67,053 +£275
£125,000 £76,278 £76,553 +£275
£150,000 £90,746 £89,778 -£968

National Insurance Rates

There have been no changes to the percentage of National Insurance Class 1 contributions, they remain at 12% for employees, and 2% above the upper earnings limit. Employers Class 1 have remained the same at 13.8%. The limits and thresholds have changed, as illustrated in the table below.

National Insurance Bands

Description 2022/23 2023/24 Change
Weekly Lower earnings limit, primary Class 1  £123  £123  0
Weekly Upper earnings limit, primary Class 1  £967  £967  0
Weekly Primary threshold  £242  £242  0
Weekly Secondary threshold  £175  £175 0
Weekly Upper Secondary Threshold for U21s  £967  £967 0
Apprentice Upper Secondary Threshold for U25s  £967  £967 0
ListenToTaxman

Simple TaxOur Favourite Tax App?
It's Simple

ListenToTaxman has teamed up with GoSimpleTax, online Self Assessment software to bring you, what in our view, is the easiest way of calculating and submitting your tax return we’ve seen so far.

Key in your income and expenses into the software, and it will flag up any unclaimed allowances. Simple. Once you’re comfortable with the information you’ve entered, simply submit via the software to HMRC. You’ll just need your Unique Tax Reference Number (UTR) found on most tax correspondence. GoSimpleTax software is free to try. If you don’t think it’s right for you - don’t pay anything. If you do choose to submit your tax information via the software, then you will pay £54.99 for an individual return – multiple returns and Parnerships are available too!