2023/24 Tax Changes / Rates

Tax-free personal allowance – £12,570

Basic rate – 20% – up to £37,700

Higher rate – 40% – from £37,701 to £125,140

Additional rate – 45% – above £125,140

Primary threshold – £12,570

Secondary threshold – £9,100

Employees and directors must pay NI Class 1 contributions at 12% and 2%

Employers pay NI Class 1 contributions at 13.8%

Ordinary rate – 8.75%

Upper rate – 33.75%

Additional rate – 39.35%

Dividends basic rate – £37,700 and a salary of £12,570

Tax-free allowance – £1,000

Pay £3,211.25 Income Tax to HMRC by 31 Jan 2025

Profits up to £50,000 – 19%

Profits above £50,000 – £250,000 will receive a tapered increase to 25%

Profits above £250,000 – 25%

It’s up to you to decide, because you control the company, but many will choose a salary of £12,570 for 2023/24

Employment allowance of £5,000 towards NIC if you have more than one employee and are eligible

Income is above £21,000 – repayment rate of 6%

National Minimum Wage – increasing from £9.50 to £10.42

Capital Gains Tax annual exemption – reducing to £6,000

The high income threshold for Child Benefit remains at £50,000

From April 2023 the eldest / only child will receive £24 per week, and additional children will receive £15.90 per week