Cintra IQ has been updated to include changes for the new tax year.
These changes bring updates, particularly in National Insurance (NI) categories for Investment Zones and enhanced flexibility for Statutory Paternity Leave. Detailed information specific to Cintra IQ has been documented click here.
We have provided legislative changes below.
National Insurance thresholds and rates for 2024-2025
National Insurance thresholds for the 2024-25 tax year are as follows:
Class 1A National Insurance (NI) on expenses and benefits.
The National Insurance Class 1A rate on expenses and benefits for 2025 to 2025 is 13.8%
National Minimum Wage (NMW) and National Living Wage (NLW) for 2024-2025.
The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law. Use the National Minimum Wage and Living Wage calculator for employers - GOV.UK (www.gov.uk) to check if you’re paying a worker the National Minimum Wage or if you owe them payments from past years.
These rates apply from 1st April 2024.
Student Loan and Postgraduate Loan rates and thresholds
If your employee’s earnings are above the earnings thresholds Cintra IQ will automatically calculate and deduct repayment amount.
Employee vehicles: mileage allowance payments
Mileage allowance payments are what you pay your employees for using their vehicles for business journeys.
You can pay your employees an approved amount of mileage allowance payments each year without having to report them to HMRC. To work out the approved amount, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle.
Statutory parental rates (SMP, SPP, SAP, ShPP, SPBP)
These rates apply from 7 April 2024.
- Statutory Maternity Pay (SMP) - weekly rate
- for the first 6 weeks - 90% of the employee's average weekly earnings.
- for remaining weeks - £184.03 or 90% of the employee's average weekly earnings, whichever is lower.
- Statutory Paternity Pay (SPP) - weekly rate
- £184.03 or 90% of the employee's average weekly earnings, whichever is lower.
- Statutory Adoption Pay (SAP) - weekly rate
- for the first 6 weeks - 90% of the employee's average weekly earnings.
- for remaining weeks - £184.03 or 90% of the employee's average weekly earnings, whichever is lower.
- Statutory Shared Parental Pay (ShPP) - weekly rate
- £184.03 or 90% of the employee's average weekly earnings, whichever is lower.
- Statutory Parental Bereavement Pay - weekly rate
- £184.03 or 90% of the employee's average weekly earnings, whichever is lower.
- SMP, SPP, Shpp, SAP, SPBP - proportion of your payments you can recover from HMRC
- 92% if your total Class 1 National Insurance (both employee and employer contributions) is above £45,000 for the previous year),
- 103% if your Class 1 National Insurance for the previous tax year is £45,000 or lower.
All employees have the same SPP rate. However, the amount you must pay an employee for each day they’re off work due to illness (the daily rate) depends on the number of ‘qualifying days’ they work each week. The weekly SSP rate from 6th April 2024 will be £116.75
Tax thresholds and rates for England, Northern Ireland, and Scotland.
England, Northern Ireland, and Wales
The standard employee personal allowance for the 2024 - 2025 tax year is £12,570 per year (£1,048 per month; £242 per week)
Scotland
The personal employee allowance for Scotland in the 2024-2025 tax year is the same as for England, Northern Ireland, and Wales but Scotland will have a new tax band introduced from April.
Employment Allowance
There is no change in the new tax year and the allowance remains at £5000.00
Apprenticeship Levy
The 2024-2025 tax year will use the same rate of:
Auto Enrolment Threshold
The automatic enrolment earnings trigger will remain at £10,000.00 for the 2024-2025 tax year.
The lower earnings limit of the qualifying band will remain at £6,240.
The upper earnings limit of the qualifying earnings band will remain at £50,270.
