Understanding the UK tax rates for the 2023/2024 tax year is essential for contractors, small business owners, and individuals to ensure compliance with the tax system. These tables provide key information on income tax allowances, taxable bands, corporation tax rates, and national insurance contributions applicable during this period.
Tax Rates and Allowances
| Description | 2022–23 (£) | 2023–24 (£) | Increase (£) |
|---|---|---|---|
| Income Tax Allowances | |||
| Personal allowance | 12,570 | 12,570 | – |
| Capital Gains Tax Annual Exempt Amount | |||
| Individuals etc | 12,300 | 12,300 | – |
| Inheritance Tax Threshold | 325,000 | 325,000 | – |
| Pension Schemes | |||
| Annual allowance | 40,000 | 40,000 | – |
| Lifetime allowance | 1,073,100 | 1,073,100 | – |
Note: From 6 April 2016, your annual allowance will be reduced if your adjusted income for the tax year exceeds £150,000.
Taxable Bands
| Description | 2022–23 (£) | 2023–24 (£) |
|---|---|---|
| Starting Rate | 0% on income up to 5,000 | 0% on income up to 5,000 |
| Basic Rate | 20% on income from 0 to 37,700 | 20% on income from 0 to 37,700 |
| Higher Rate | 40% on income from 37,701 to 150,000 | 40% on income from 37,701 to 150,000 |
| Additional Rate | 45% on income over 150,000 | 45% on income over 150,000 |
Note: From 2008–09, the 0% starting rate applies only to savings income. If an individual’s taxable non-savings income exceeds the starting rate limit, then the starting rate for savings will not be available for savings income.
Corporation Tax Rates
| Corporation Tax Profits | 2022–23 (£) | 2023–24 (£) |
|---|---|---|
| 0 – 50,000 | 19% | 19% |
| 50,001 – 250,000 | 19% | 19% |
| Over 250,000 | 25% | 25% |
National Insurance Rates
| Description | 2022–23 (£) | 2023–24 (£) |
|---|---|---|
| Primary Threshold | £190 per week | £190 per week |
| Secondary Threshold | £175 per week | £175 per week |
| Employees’ Primary Class 1 Rate | 13.25% on earnings between primary threshold and upper earnings limit; 3.25% above upper earnings limit | 13.25% on earnings between primary threshold and upper earnings limit; 3.25% above upper earnings limit |
| Employers’ Secondary Class 1 Rate | 15.05% on earnings above secondary threshold | 15.05% on earnings above secondary threshold |
While the information in these tables is now historical, it remains useful for understanding past tax systems and for comparing how tax rates have evolved over time. If you’re reviewing past financial records or simply curious about previous tax periods, these tables are a valuable reference.
For more detailed information and additional resources, you can visit HMRC.
If you want to see the UK tax tables for 2022/2023, click here.