Tax & National Insurance Contribution Rates
Your tax-free Personal Allowance
The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on.
Income Tax rates and bands
The table shows the tax rates you pay in each band if you have a standard Personal Allowance of £12,570.
| Band | Taxable income | Tax rate |
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £150,000 | 40% |
| Additional rate | over £150,000 | 45% |
National Insurance
An employee’s Class 1 National Insurance is made up of contributions:
- deducted from their pay (employee’s National Insurance)
- paid by their employer (employer’s National Insurance)
The amounts deducted and paid depend on:
- the employee’s National Insurance category letter
- how much of the employee’s earnings falls within each band
Employee National Insurance Rates (2024-25)
| Category Letter | Weekly Earnings Threshold | £123 to £242 (£533 to £1,048 a month) | £242.01 to £967 (£1,048.01 to £4,189 a month) | Over £967 a week (£4,189 a month) |
| A | £0 – £123 | 0% | 8% | 2% |
| B | £123.01 – £242 | 0% | 1.85% | 2% |
| C | N/A | N/A | N/A | N/A |
| D | £0 – £123 | 0% | 2% | 2% |
| E | £0 – £123 | 0% | 1.85% | 2% |
| F | £0 – £123 | 0% | 8% | 2% |
| H | £0 – £123 | 0% | 8% | 2% |
| I | £0 – £123 | 0% | 1.85% | 2% |
| J | £0 – £123 | 0% | 2% | 2% |
| K | N/A | N/A | N/A | N/A |
| L | £0 – £123 | 0% | 2% | 2% |
| M | £0 – £123 | 0% | 8% | 2% |
| N | £0 – £123 | 0% | 8% | 2% |
| S | N/A | N/A | N/A | N/A |
| V | £0 – £123 | 0% | 8% | 2% |
| Z | £0 – £123 | 0% | 2% | 2% |
Example: If you’re in category A and you earn £1,000 in a week, you’ll pay:
- Nothing on the first £123.
- 8% (£7.36) on your earnings between £123.01 and £967.
- 2% (£1.06) on the remaining earnings above £967.
This means your National Insurance payment will be £8.42 for the week.
Employer National Insurance Rates (2024-25)
| Category Letter | Weekly Earnings Threshold | £123 to £175 (£533 to £758 a month) | £175.01 to £481 (£758.01 to £2,083 a month) | £481.01 to £967 (£2,083.01 to £4,189 a month) | Over £967 a week (£4,189 a month) |
| A | £0 – £123 | 0% | 13.80% | 13.80% | 13.80% |
| B | £0 – £175 | 0% | 13.80% | 13.80% | 13.80% |
| C | £0 – £175 | 0% | 13.80% | 13.80% | 13.80% |
| D | £0 – £123 | 0% | 0% | 13.80% | 13.80% |
| E | £0 – £123 | 0% | 0% | 13.80% | 13.80% |
| F | £0 – £123 | 0% | 0% | 13.80% | 13.80% |
| H | £0 – £123 | 0% | 0% | 0% | 13.80% |
| I | £0 – £123 | 0% | 0% | 13.80% | 13.80% |
| J | £0 – £123 | 0% | 13.80% | 13.80% | 13.80% |
| K | £0 – £123 | 0% | 0% | 13.80% | 13.80% |
| L | £0 – £123 | 0% | 0% | 13.80% | 13.80% |
| M | £0 – £123 | 0% | 0% | 0% | 13.80% |
| N | £0 – £123 | 0% | 0% | 13.80% | 13.80% |
| S | £0 – £123 | 0% | 0% | 13.80% | 13.80% |
| V | £0 – £123 | 0% | 0% | 0% | 13.80% |
| Z | £0 – £123 | 0% | 0% | 0% | 13.80% |