From April 2025, the national living wage for those aged 21 or older will rise by 6.7%, taking it from £11.44 an hour to £12.21. The national minimum wage will also go up for those aged between 18 and 20 from £8.60 an hour to £10.
Hourly pay for apprentices will increase from £6.40 to £7.55.
Both types of state pension will rise by 4.1% in 2025/2026, in line with the so-called 'triple lock'.
From April 2025, the full new state pension will go up from £221.20 to £230.25 a week and the full basic state pension will increase from £169.50 to £176.45 per week.
The standard minimum guarantee for pension credit will also go up by 4.1% from April 2025.
From 6 April 2025, the rate of employer National Insurance contributions (NICs) will increase by 1.2 percentage points from 13.8% to 15% and the annual threshold at which employers start to pay NICs will reduce from £9,100 to £5,000.
The employment allowance will also increase from £5,000 to £10,500, and the £100,000 threshold will be removed, meaning 865,000 employers won’t pay any NICs at all in 2025/2026.
The Chancellor Rachel Reeves said in her 2024 Autumn Budget there would be no extension of the freeze in income tax and employee National Insurance thresholds announced by the previous government. From 2028/2029, the personal tax thresholds will go up in line with inflation.
These allowances for an individual may be higher or lower depending on individual circumstances.
The existing non-dom tax regime – for UK residents whose permanent home or domicile for tax purposes is outside the UK – will be abolished from April 2025.
It will be replaced by a new scheme based on residence, which will be designed to attract investment and talent to the UK.
The 2024 Autumn Budget included immediate increases in the rates at which capital gains tax (CGT) is paid on any profits made from the sale of assets such as second homes or shares.
The lower rate of CGT has gone up from 10% to 18%, and the higher rate from 20% to 24%. This brings them into line with the rates on residential property, which will remain at 18% and 24%.
The increased rates took effect from 30 October 2024.
If you want to make the most of the tax-free allowances or you’re looking to boost your savings pot this financial year, read our guide on how to save money.
This article was last updated on 05/11/2024, 05:37
