The 2024/2025 tax year commenced on the 6 April 2024, and this year there has been a number of changes that may impact you from your April pay that we wanted to update you on. This includes further changes to employee National Insurance rates, updated tax brackets, new statutory rates along with our annual pension re-banding activity.
Tax rates and Personal Allowances
The standard personal allowance has remained the same for the 2024 / 2025 tax year, which is set as £12,570 – in most cases this is the standard rate that you will not pay tax, however this depends on your personal circumstances.
HMRC advise your employer of your personal allowance via a tax code, and this is determined by your place of residence:
- Scotland – S1257L
- England and Northern Ireland – 1257L
- Wales – C1257L
The tax thresholds for the 2024/2025 tax year are available here.
Changes to National Insurance Contributions
From 6 April 2024 there has been an update to the main rate of employee National Insurance rates (Class 1 NICS).
This has reduced from 10% down to 8%, so you should see a reduction in the amount of employee national Insurance that you pay each month. This is available to view from your April payslip on HR Connect self-service.
Student Loan and Postgraduate Loan Thresholds
The earning thresholds have increased for the new tax year, meaning you can earn more each month before your loan is deducted from salary.
Depending on what plan your on will determine the thresholds. All details can be found here. Along with all other statutory increases for the 2024/2025 tax year.
Annual Pension Re-banding
In April each year, our pension providers update their earning thresholds and ask all employers to re-assess all colleagues earnings to ensure the correct percentage of employee pension contributions is applied. This has taken place and updated from your April salary, you can review this on your payslip on HR Connect self-service.
All information on the pension scheme contribution structures can be accessed directly from your pension scheme website:
SPPA – Scottish Teachers Pension Scheme: https://pensions.gov.scot/teachers
LPF - Lothian Pension Fund: https://www.lpf.org.uk/
From April 2024, both pension funds have updated the rate of employer contributions for the University, this has no impact on colleague's benefits, they remain the same. The valuation of the funds is based on a number of factors to ensure that the levels of funds are in place for all future members benefits. More details can be found on your pension providers website listed above.
If you have any queries regarding any of the changes, following your review of your payslip on HR Connect self-service, please contact the payroll team: payroll@napier.ac.uk