From April 2025, the national living wage for those aged 21 or older will rise by 6.7%, taking it from £11.44 an hour to £12.21. The national minimum wage will also go up for those aged between 18 and 20 from £8.60 an hour to £10.
Hourly pay for apprentices will increase from £6.40 to £7.55.
Both types of state pension will rise by 4.1% in 2025/2026, in line with the so-called 'triple lock'.
From April 2025, the full new state pension will go up from £221.20 to £230.25 a week and the full basic state pension will increase from £169.50 to £176.45 per week.
The standard minimum guarantee for pension credit will also go up by 4.1% from April 2025.
From 6 April 2025, the rate of employer National Insurance contributions (NICs) will increase by 1.2 percentage points from 13.8% to 15% and the annual threshold at which employers start to pay NICs will reduce from £9,100 to £5,000.
The employment allowance will also increase from £5,000 to £10,500, and the £100,000 threshold will be removed, meaning 865,000 employers won’t pay any NICs at all in 2025/2026.
The Chancellor Rachel Reeves said in her 2024 Autumn Budget there would be no extension of the freeze in income tax and employee National Insurance thresholds announced by the previous government. From 2028/2029, the personal tax thresholds will go up in line with inflation.
These allowances for an individual may be higher or lower depending on individual circumstances.
The existing non-dom tax regime – for UK residents whose permanent home or domicile for tax purposes is outside the UK – will be abolished from April 2025.
It will be replaced by a new scheme based on residence, which will be designed to attract investment and talent to the UK.
The 2024 Autumn Budget included immediate increases in the rates at which capital gains tax (CGT) is paid on any profits made from the sale of assets such as second homes or shares.
The lower rate of CGT has gone up from 10% to 18%, and the higher rate from 20% to 24%. This brings them into line with the rates on residential property, which will remain at 18% and 24%.
The increased rates took effect from 30 October 2024.
See how to maximise your allowances before the current tax year ends on 5 April 2026.
In the current tax year, you can save up to £20,000 in a tax-efficient Individual Savings Account (ISA).
If you’re aged 18 or over, you can now subscribe to more than one of the same type of ISA in the same tax year – as long as you stay within the overall annual ISA subscription limit.
This doesn’t apply to Lifetime ISAs where you can only subscribe to one Lifetime ISA in a tax year and there is an annual payment limit of £4,000.
Please note – HSBC doesn't offer Lifetime ISAs.
This means, for example, you can subscribe to a cash ISA with HSBC and another cash ISA with a different ISA provider all in the same tax year.
ISA providers aren't obliged to accept subscriptions to more than one ISA of the same type in the same tax year. HSBC isn't offering this at the moment.
If you already have an HSBC ISA but didn’t make payments in the previous tax year, you may need to reactivate it before you can pay in any more money.
Find out how to:
You can check to see if you're still eligible for a Global Investment Centre stocks & shares ISA.
An InvestDirect stocks & shares ISA requires a new application each tax year.
Depending on the type of ISA you have, it may take a few working days to reactivate it, so please allow plenty of time.
With a Junior ISA, you can save up to £9,000 in the 2025/2026 tax year.
With a Child Trust Fund, there's also a £9,000 annual limit but it's per birthday year, starting on the child’s birthday and ending on the day before their next birthday.
Any income or gains arising are exempt from UK income tax and capital gains tax.
Most people can add up to £60,000 to their pension pot each year, tax-free – or up to 100% of their earnings if they earn under £60,000 a year. This means the total sum of any personal contributions, employer contributions, and tax relief can’t usually exceed the £60,000 pension annual allowance.
If you haven’t reached this limit, you may want to consider adding more to your pension from your pre-tax income. However, you might not be able to access this money until you’re at least 55 years old (or 57 from 2028). Find out more from MoneyHelper about tax relief on pension contributions.
A tax code lets your employer or pension provider know how much income tax you need to pay. Check your tax code is correct online or by calling HM Revenue & Customs (HMRC).
If your employer or pension provider doesn’t have a tax code from HMRC, it has to apply an emergency tax code. If this happens, you might have more tax deducted from your earnings or pension than necessary.
But don’t worry, emergency tax codes are temporary. Your employer or pension provider should receive a tax code from HMRC quickly.
If you need a certificate of interest (tax certificate) to complete your tax self-assessment, please send us a secure e-message in online banking or by using chat in the mobile banking app.
The certification of interest confirms the total amount of credit interest paid into an account over the tax year.
Remember that tax rules can change, and any benefits will depend on your circumstances.
This article was last updated on 06/06/2025, 07:46
