One of the more lamented features of the current tax system is the ongoing freeze applying to tax/NI thresholds and allowances, which were originally planned to remain in place until 2028. The announced parameters for 2024/25 seem to confirm this will be the case for England and Wales. Scottish taxpayers will see the introduction of a new “advanced” income tax band, meaning there will be six income tax rates. When combined with the various NI rates (which apply at UK rates), the position in Scotland is increasingly complicated.

While the publication appears to pour cold water on rumours that a cut to income tax (or an increase to the higher rate threshold) is imminent, there is also a short caveat that says “Unless otherwise stated, the following figures apply from 6 April 2024 to 5 April 2025.” This means there could still be changes made at next month’s Budget.

The levels of the national living wage (NLW) and national minimum wage (NMW) have also been confirmed, with the NLW increasing to £11.44 per hour from April 2024 and the NMW to £8.60 per hour.