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Rates & Thresholds | Nannytax

Tax Rates & Thresholds 24-25

Government Rates & Thresholds 24-25

The current Government rates for the tax year 2024 – 2025 come into effect as of the 6th of April 2024. Please see the tables below for the latest Tax and National Insurance Rates & Thresholds 24-25

Tax brackets Gross per week Description
Lower Earnings Limit £123 gross per week or less If you pay your employee the LEL or below, there is nothing due to HMRC in respect of NI. This means the employee will not be contributing towards their NI record which can affect their eligibility to a state pension or benefits.
Bracket between Lower Earnings Limit and NI Threshold £123 – £175 gross per week If you pay your employee between these figures there is nothing due to HMRC in respect of NI.
Employer’s (Secondary) NI Threshold £175 gross per week or more If you pay your employee £175 or more and they are on a standard NI code, there will not be an Employee NI deduction, but Employer NI will be due
Employee’s (Primary) NI Threshold £242 gross per week or more If you pay your employee £242 or more you must now deduct National Insurance on behalf of your employee, as well as pay Employer’s NI.
Tax Threshold Over £242 gross per week Based on the standard tax free allowance for this year of £12,570, if you pay your employee £242 or more you must now also deduct tax from your employee.

Please note, the thresholds differ slightly if you are based outside of England. For the current Government rates for Scotland and Wales, please click here.

Tax and NI Payments

If your Tax and NI bill is below £1,500 per month you will have to pay the Tax and NI to HMRC on a quarterly basis. Be aware that late payments can result in hefty fines and interest being applied.

If your monthly liability bill exceeds £1,500 per month, you must pay HMRC every month.

Payment Deadlines Financial Quarter Months Covered
19th July 1 Apr, May, Jun
19th October 2 Jul, Aug, Sep
19th January 3 Oct, Nov, Dec
19th April 4

Jan, Feb, Mar

National Minimum Wage (NMW)

The National Minimum Wage changes every October, the National Living Wage changes every April.

Age Hourly Rate
Aged 21 and above (national living wage rate) £11.44
Aged 18 to 20 inclusive £8.60
Aged under 18 (but above compulsory school leaving age) £6.40
Apprentices aged under 19 £6.40
Apprentices aged 19 and over but in the first year of their apprenticeship £6.40

Pension Contribution

Below is a table that illustrates the minimum percentage of the employee’s pay that an employer, an employee and the government will have to contribute towards pensions this financial year.

Dates Employer Employee Government Total
6th April 2024 – 5th April 2025 3% 4% 1%


Statutory Maternity Pay (SMP)

The first 6 weeks of SMP are paid at 90% of average gross weekly earnings. The remaining weeks of the maternity pay period (up to a maximum of 33 weeks) are paid at the current SMP rate of £184.03 gross per week, or 90% of the employee’s weekly earnings, whichever is lower.

Statutory Sick Pay (SSP)

The 2024-25 rate of SSP is £184.03 gross per week. The first 3 consecutive days of illness are unpaid as SSP starts on the fourth consecutive day of illness and can be paid for up to 28 weeks.

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