New Tax year 2023/24

New Tax year 2023/24

We are now in the tax year 23/24 so what does this mean for you, your business and taxes?


The tax year runs from 6 April 2023 to 5 April 2024 usually referred to as 2023/24 tax year.

The self-assessment tax return including all incoming sources in this period must be submitted by 31 January 2025.

Records must be kept until at least 31 January 2030. (5 years after the submission deadline)

Your business accounts may not necessarily run to 5 April 2024 you may have a different year-end before this date.

The tax rates and allowances are often changed each tax year.

Everyone usually receives a personal allowance which is the amount that you can earn before you start to pay income tax.
The personal allowance for 2023/24 is £12,570.


Income tax

This is payable on profits.

The rates of income tax for 2023 / 2024 are:


Taxable income

Tax rate

Personal allowance

Up to £12,570 (may be less depending on income levels)


Basic Rate

£12,501 to £50,270


Higher rate

£50,271 to £125,140


Additional rate

Over £125,140


If you live in Scotland or Wales, the tax rates and bands may be different.

National Insurance

Self-employed national insurance is paid differently to employed. A self-employed person may have to pay two types of National Insurance contributions;

  1. Class 2
    If your profits from your self-employed business exceed £12,570 for the year, you will pay Class 2 National Insurance at a rate of £3.45 per week. There £179.40 for the full year.
  2. Class 4
    This is paid if these profits exceed £12,570 for the year as follows;
    9% on profits between £12,570 and £50,270 plus
    2% on profits of over £50,270

Both Class 2 and Class 4 national insurance contributions are calculated on the self-assessment tax return and will be shown in your tax calculation and payable by 31 January 2025.

Other allowances

You may also have tax-free allowances for;
– Trading allowance – This is the first £1,000 of income from self-employment
– Property allowance – This is the first £1,000 of income from property you rent (unless you’re using the Rent-a-room scheme)


Corporation tax

Corporation tax is 19% for profits up to £50,000.

Between £50k and £250k there is a marginal rate calculation with an effective rate of 26.5%

Above £250,000 is 25%


If you are a small employer than your employers allowance has renewed. This is the £5,000 allowance each year that reduces down the amount of employers national insurance you have to pay over to HMRC.


5 April 2024

Tax Year-End

5 October 2024

Register with HMRC if 2023/24 was your first year trading.

31 January 2025

Self Assessment tax return online filing deadline

31 January 2025

Income tax and national insurance balancing payment payable

31 January 2025

1st payment on account

31 July 2025

2nd payment on account for

A payment on account is an amount paid towards the tax due in your current tax year. For more information see our article on payments on account.

To find out more or if you need assistance with your tax return for 2023/24 then please get in touch.

Thank you for reading this weeks blog – New Tax year 2023/24.


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