Scottish Income Tax Rates And How To Check If It Applies To You

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Since the 2018/19 tax year, the Scottish Government has been using a different income tax administration compared to the rest of the UK. In other words, residents in Scotland are paying different income tax rates. Likewise, they are using higher thresholds and bands than the rest of the UK.

Here, we will show you the thresholds, bands, and income tax rates used by the Scottish Government for the previous tax year as well as for the 2020/21 tax year.

Scottish Income Tax Rates and Thresholds and Changes For 2020/21

The Starter Rate has a tax rate of 19% with Tax Bands and Thresholds of £12,501 – £14,549 for the 2019/20 tax year and £12,501 – £14,585 for the 2020/21 tax year.

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The Basic Rate has a tax rate of 20% with Tax Bands and Thresholds of £14,550 – £24,944 for the 2019/20 tax year and £14,586 – £25,158 for the 2020/21 tax year.

For the Intermediate, the tax rate is 21% with Tax Bands and Thresholds of £24,945 – £43,430 for the 2019/20 tax year and £25,159 – £43,430 for the 2020/21 tax year.

The Higher Rate has a tax rate of 41% with Tax Bands and Thresholds of £43,431 – £150,000 for the 2019/20 tax year and £43,431 – £150,000 for the 2020/21 tax year.

The Additional Rate has a tax rate of 46% with Tax Bands and Thresholds of Over £150,000 for the 2019/20 tax year and for the 2020/21 tax year.

For both tax years, the Personal Allowance is set at £12,500.

The information above considers that the person is using the Personal Allowance for the tax-free income of £12,500. Also, if your earnings are more than £100,000, then you can expect a reduction of £1 on the Personal Allowance for every £2 that you’ve earned. This is just similar for the rest of the UK.

Who Is A Scottish Taxpayer?

Whether or not you are a Scottish taxpayer, HMRC will decide on this based on your place of residence. Take note that the Scottish rate of Income Tax is due for the whole year.

For those who are recognised as a Scottish taxpayer, they will be marked with an “S” on their PAYE tax code.

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