Guide to the Tax Year 2023-24

In this blog, we give you a run-down of all the changes you need to know about for preparing payroll in 2023-24.

Tax Rates & Allowances

There has been no change to UK-wide personal allowances or basic rate tax for 2023-24. In England and Wales there have however been changes to the higher (40%) and additional rates, with additional rate now kicking in at income over £125,140 (rather than £150,000). In Scotland there have been slight changes to tax bands with the higher band now set at 42% (up from 41% last year), applicable to income between £31,093 and £125, 140, and the top band at 47% (up from 46%), applicable to income over £125,140.

National Minimum Wage

Rates for all age groups have risen this year, with 16-17 year olds entitled to £5.28 per hour (ph), 18-20 year olds £7.49 ph, 21-22 year olds £10.18ph, and the national living wage for 23 years and over set at £10.42 ph. The apprentice rate has also risen to £5.28 ph.

Student Loan Recovery

Plan 1 Loans: The income threshold which triggers repayment of Student Loans has risen to £22,015 per annum (pa), or £1,834.58 per month (pm) / £423.36 per week (pw). The rate of deduction remains the same at 9%.

Plan 2 Loans: The threshold remains the same this year at £27,295pa, or £2274.58 pm / £524.90 pw. Deductions remain at 9%.

Plan 4 Loans: The threshold has risen to £27,660 pa, or £2305.00 pm / £531.92 pw. Deductions remain at 9%.

Postgraduate Loans: There have been no changes in 2023/24 with threshold remaining at £21,000 pa, and deductions at 6%


The annual pensions allowance has risen to £60,000 this year, with the automatic enrolment trigger and upper and lower limits remaining the same as last year.

Statutory Payments

The qualifying earnings level for statutory payments remains at £123 per week this year.

There has been a slight uplift in Maternity Pay (further 33 weeks rate), Paternity Pay, Adoption Pay, Shared Parental Pay, and Parental Bereavement Pay, with the rate being the lesser of 90% of AWE or £172.48.

The standard weekly rate for Statutory Sick Pay has risen to £109.40 per week, and Statutory maximum redundancy pay has risen this year to £643 per week.

National Insurance

The rates of National Insurance contributions and thresholds for both employees and employers are unchanged for 2023/24, and the employment allowance has remained the same at £5000 pa for eligible employers.


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