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Copy linkYour Guide to Payroll Year End 2024
Payroll Year End 2024 is quickly approaching, but don’t worry! There is plenty of time to prepare.
We’ve documented what you need to know about Payroll Year End 2024, covering everything from the basics to upcoming legislative changes.
What is Payroll Year End
The tax year in the UK runs from April 6th of one year to April 5th of the following year.
Payroll Year End refers to the end of the tax year for payroll purposes and your final submission to HM Revenue & Customs (HMRC).
In this final submission, you are required to submit information such as your Full Payment Submissions (FPS) and Employer Payment Submissions (EPS).
Your main responsibilities include:
- Reporting to HMRC on the previous tax year (ending on April 5th)
- Providing employees with their P60
- Preparing for the new tax year, which starts on April 6th
Payroll Year End helps ensure that both employers and employees have accurate and up-to-date tax information for the preceding tax year.
Important dates for Payroll Year End 2024
Key dates for Payroll Year End 2024 are as follows:
- On or before your employees’ payday: send your final FPS payroll report of the year
- From April 6th: update employee payroll records
- From April 6th: ensure your payroll software is updated
- By May 31st: give your current employees a P60
- By July 6th: report employee expenses and benefits if they aren’t being processed through payroll
- By July 19th: pay Class 1A NIC on P11D benefits via cheque
- By July 22nd: pay Class 1A NIC on P11D benefits electronically
- By October 19th: pay Class 1A NIC on P11D benefits via cheque
- By October 22nd: pay Class 1A NIC on P11D benefits electronically
Legislative changes for payroll in 2024
Payroll Year End 2024 brings a variety of legislative changes you need to be aware of.
See the upcoming legislative changes below.
National Insurance Rates and Earning Limits for 2024-2025
In 2024/2025, the National Insurance Rates and Earning Limits are as follows.
| Lower Earnings Limit (LEL) £ | Primary Threshold (PT) £ | Secondary Threshold (ST) £ | Upper Earnings Limit (UEL) £ | Upper Secondary Threshold (UST) £ | Apprentice Upper Secondary Threshold (AUST) £ | Freeport and Investment Zone Upper Secondary Threshold (FUST/IZUST) £ | Veterans Upper Secondary Threshold (VUST) £ | ||||||||
| Weekly | 123 | Weekly | 242 | Weekly | 175 | Weekly | 967 | Weekly | 967 | Weekly | 967 | Weekly | 481 | Weekly | 967 |
| 2 Weekly | 246 | 2 Weekly | 484 | 2 Weekly | 350 | 2 Weekly | 1934 | 2 Weekly | 1934 | 2 Weekly | 1934 | 2 Weekly | 962 | 2 Weekly | 1934 |
| 4 Weekly | 492 | 4 Weekly | 967 | 4 Weekly | 700 | 4 Weekly | 3867 | 4 Weekly | 3867 | 4 Weekly | 3867 | 4 Weekly | 1924 | 4 Weekly | 3867 |
| Monthly | 533 | Monthly | 1048 | Monthly | 758 | Monthly | 4189 | Monthly | 4189 | Monthly | 4189 | Monthly | 2083 | Monthly | 4189 |
| Quarterly | 1599 | Quarterly | 3143 | Quarterly | 2275 | Quarterly | 12568 | Quarterly | 12568 | Quarterly | 12568 | Quarterly | 6250 | Quarterly | 12568 |
| Half-yearly | 3198 | Half-yearly | 6285 | Half-yearly | 4550 | Half-yearly | 25135 | Half-yearly | 25135 | Half-yearly | 25135 | Half-yearly | 12500 | Half-yearly | 25135 |
| Annual | 6396 | Annual | 12570 | Annual | 9100 | Annual | 50270 | Annual | 50270 | Annual | 50270 | Annual | 25000 | Annual | 50270 |
Employer and employee contributions for 2024-2025
In 2024/2025, employer and employee contributions are as follows.
| Employee Contributions | Employer Contributions | ||||||||
| Contribution Table Letter | Earnings below LEL | Earning at or above LEL up to and including PT | Earning above the PT up to and including UEL | Balance of earnings above the UEL | Earnings below LEL | Earnings at or above the LEL up to and including the ST | Earnings above the ST up to and including the FUST/IZUST | Earnings above the FUST/IZUST up to and including UST/AUST/VUST | Balance of earnings above UST/AUST/VUST |
| A | NIL | 0% | 8% | 2% | NIL | 0% | 13.8% | 13.8% | 13.8% |
| B | NIL | 0% | 1.85% | 2% | NIL | 0% | 13.8% | 13.8% | 13.8% |
| C (Over State Pensions Age) | NIL | NIL | NIL | NIL | NIL | 0% | 13.8% | 13.8% | 13.8% |
| D (Investment Zone Deferment) | NIL | 0% | 2% | 2% | NIL | 0% | 0% | 13.8% | 13.8% |
| E (Investment Zone MWRRE) | NIL | 0% | 1.85% | 2% | NIL | 0% | 0% | 13.8% | 13.8% |
| F (Freeport Standard) | NIL | 0% | 8% | 2% | NIL | 0% | 0% | 13.8% | 13.8% |
| H (Apprentice Under 25) | NIL | 0% | 8% | 2% | NIL | 0% | 0% | 0% | 13.8% |
| I (Freeport MWRRE) | NIL | 0% | 1.85% | 2% | NIL | 0% | 0% | 13.8% | 13.8% |
| J (Deferment) | NIL | 0% | 2% | 2% | NIL | 0% | 13.8% | 13.8% | 13.8% |
| K (Investment Zone over State Pension Age) | NIL | NIL | NIL | NIL | NIL | 0% | 0% | 13.8% | 13.8% |
| L (Freeport Determent) | NIL | 0% | 2% | 2% | NIL | 0% | 0% | 13.8% | 13.8% |
| M (Under 21) | NIL | 0% | 8% | 2% | NIL | 0% | 0% | 0% | 13.8% |
| N (Investment Zone Standard) | NIL | 0% | 8% | 2% | NIL | 0% | 0% | 13.8% | 13.8% |
| S (Freeport over State Pension Age) | NIL | NIL | NIL | NIL | NIL | 0% | 0% | 13.8% | 13.8% |
| V (Veterans Standard) | NIL | 0% | 8% | 2% | NIL | 0% | 0% | 0% | 13.8% |
| Z (Under 21 – Determent) | NIL | 0% | 2% | 2% | NIL | 0% | 0% | 0% | 13.8% |
2024-2025 National Living Wage (NLW) and National Minimum Wage (NMW)
The National Minimum Wage is the minimum pay per hour almost all workers are entitled to by law.
Use the National Minimum Wage calculator 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 1 April 2024.
| Category of worker | Hourly rate (£) |
| Aged 21 and above (National Living Wage rate) | £11.44 |
| Aged 18 to 20 | £8.60 |
| Aged under 18 (but above compulsory school leaving age) | £6.40 |
| Apprentices aged under 19 | £6.40 |
| Apprentices aged 19 and over, but in the first year of their apprenticeship | £6.40 |
You can see rates for previous years here.
Student Loan and Postgraduate Loan Rates and Thresholds 2024 to 2025
| Plan Type 1 | ||
| The Plan Type 1 annual threshold for 2024 to 2025 is | £24,990.00 | |
| and the pay frequency equivalents are: | ||
| Weekly = £24990 / 52x1 = | £480.57 | |
| 2 Weekly = £24990 / 52x2 = | £961.15 | |
| 4 Weekly = £24990 / 52x4 = | £1,922.30 | |
| Monthly = £24990 / 12x1 = | £2,082.50 | |
| The deduction Rate is 9% | ||
| Plan Type 2 | ||
| The Plan Type 2 annual threshold for 2024 to 2025 is | £27,295.00 | |
| and the pay frequency equivalents are: | ||
| Weekly = £27295 / 52x1 = | £524.90 | |
| 2 Weekly = £27295 / 52x2 = | £1,049.80 | |
| 4 Weekly = £27295 / 52x4 = | £2,099.61 | |
| Monthly = £27295 / 12x1 = | £2,274.58 | |
| The deduction Rate is 9% | ||
| Plan Type 4 | ||
| The Plan Type 4 annual threshold for 2024 to 2025 is | £31,395.00 | |
| and the pay frequency equivalents are: | ||
| Weekly = £31395 / 52x1 = | £603.75 | |
| 2 Weekly = £31395 / 52x2 = | £1,207.50 | |
| 4 Weekly = £31395 / 52x4 = | £2,415.00 | |
| Monthly = £31395 / 12x1 = | £2,616.25 | |
| The deduction Rate is 9% | 9% | |
You can see rates for previous years here.
Student Loan and Postgraduate Loan Rates and Thresholds 2024 to 2025
| Plan Type 1 | ||
| The Plan Type 1 annual threshold for 2024 to 2025 is and the pay frequency equivalents are: | £24,990.00 | |
| Weekly = £24990 / 52x1 = | £480.57 | |
| 2 Weekly = £24990 / 52x2 = | £961.15 | |
| 4 Weekly = £24990 / 52x4 = | £1,922.30 | |
| Monthly = £24990 / 12x1 = | £2,082.50 | |
| The deduction Rate is 9% | ||
| Plan Type 2 | ||
| The Plan Type 2 annual threshold for 2024 to 2025 is and the pay frequency equivalents are: | £27,295.00 | |
| Weekly = £27295 / 52x1 = | £524.90 | |
| 2 Weekly = £27295 / 52x2 = | £1,049.80 | |
| 4 Weekly = £27295 / 52x4 = | £2,099.61 | |
| Monthly = £27295 / 12x1 = | £2,274.58 | |
| The deduction Rate is 9% | ||
| Plan Type 4 | ||
| The Plan Type 4 annual threshold for 2024 to 2025 is and the pay frequency equivalents are: | £31,395.00 | |
| Weekly = £31395 / 52x1 = | £603.75 | |
| 2 Weekly = £31395 / 52x2 = | £1,207.50 | |
| 4 Weekly = £31395 / 52x4 = | £2,415.00 | |
| Monthly = £31395 / 12x1 = | £2,616.25 | |
| The deduction Rate is 9% | ||
Note: Postgraduate loan (PGL) rates are To Be Announced (TBA). Once the information is available, we will update this blog.
2024-2025 Statutory Payment Rates
Use the maternity, adoption and paternity calculator for employers to calculate your employee’s:
- Statutory Maternity Pay (SMP)
- Paternity or Adoption Pay
- Qualifying week
- Average weekly earnings
- Leave period
These rates apply from April 6th 2024.
| Type of payment or recovery | 2024 to 2025 rate |
| Statutory Maternity Pay (SMP) – weekly rate for first 6 weeks | 90% of the employee’s average weekly earnings |
| Statutory Maternity Pay (SMP) – weekly rate 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 first 6 weeks | 90% of employee’s average weekly earnings |
| Statutory Adoption Pay (SAP) – weekly rate 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 (SPBP) – weekly rate | £184.03 or 90% of the employee’s average weekly earnings, whichever is lower |
| SMP, SPP, ShPP, SAP or 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 tax year 103% if your total Class 1 National Insurance for the previous tax year is £45,000 or lower |
Statutory Sick Pay (SSP)
In 2024-2025, the same weekly Statutory Sick Pay rate applies to all employees.
However, the amount you must pay an employee for each day they’re off work due to illness (the daily rate) is dictated by the number of ‘qualifying days’ they work each week.
You can work out your employee’s sick pay using the SSP calculator or use the rates below which apply from April 6th 2024.
| Unrounded daily rates | Number of qualifying days in week | 1 day to pay | 2 days to pay | 3 days to pay | 4 days to pay | 5 days to pay | 6 days to pay | 7 days to pay |
| £16.6785 | 7 | £16.68 | £33.36 | £50.04 | £66.72 | £83.40 | £100.08 | £116.75 |
| £19.4583 | 6 | £19.46 | £38.92 | £58.38 | £77.84 | £97.30 | £116.75 | - |
| £23.35 | 5 | £23.35 | £46.70 | £70.05 | £93.40 | £116.75 | - | - |
| £29.1875 | 4 | £29.19 | £58.38 | £87.57 | £116.75 | - | - | - |
| £38.9166 | 3 | £38.92 | £77.84 | £116.75 | - | - | - | - |
| £58.375 | 2 | £58.38 | £116.75 | - | - | - | - | - |
| £116.75 | 1 | £116.75 | - | - | - | - | - | - |
Income Tax rates for England, Wales & Northern Ireland
Currently, there aren't any changes expected for the 2024/25 tax year in terms of rate changes or bandings changes.
Income Tax rates for Scotland
| Band | Rate |
| 19 (Starter) | £12,571* - £14,876 |
| 20 (Basic) | £14,877 - £26,561 |
| 21 (Intermediate) | £26,562 - £43,662 |
| 42 (Higher) | £43,663 - £75,000 |
| N/A (Advanced) | £75,001 - £125,140** |
| 47 (Top) | Above £125,140 |
*It’s important to note that these tax bands may be subject to change based on the Government’s stance on taxation.
Three Tips for Payroll Year End 2024
1) Be prepared
To ensure a smooth Payroll Year End, gather all the necessary data in advance. Actively pursue any missing information, as you wouldn't want to make corrections in another tax year.
2) Reconcile all previous periods
Verify your reports against the HMRC website to ensure they are balanced. If discrepancies arise, investigate the reasons behind them.
This proactive approach will simplify the process before the deadline and eliminate the need for an Earlier Year Update or an amended FPS submission.
3) Create a Checklist
Feeling overwhelmed with responsibilities?
Develop a checklist for Payroll Year End, adhere to it and update it for next year's use.
A checklist ensures you follow all the necessary steps and don't overlook any crucial details.
Payroll Fact Card 2024/2025
To help you ensure your payroll remains accurate and compliant, we created a handy asset covering a range of figures, including:
- Income tax
- Company car rates
- National Insurance
- Statutory payments
- Pensions
Download your free document today to ensure your payroll processes are compliant and correct.
How IRIS can help
We have a wide array of payroll solutions which can suit the needs of any business.
Whether you want software to manage payroll in-house or would prefer to outsource the responsibility, we have you covered.
