What are the 2018/2019 Scottish Income Tax Rates?
The 2016 Scotland Act includes articles that give the power to set all income tax bands and rates to the Scottish Parliament. This does not apply to income from savings or dividends.
It is not considered a devolved power because Scottish income tax is still under the umbrella of the wider UK income tax system. HMRC are still responsible for collecting and administering Scottish income tax, making the corresponding payment to the Scottish Government.
2018/2019 Scottish Income Tax Rates
|NAME OF BAND||RATE %||INCOME BAND|
|Starter Rate||19||£11,850 – £13,850|
|Basic Rate||20||£13,850 – £24,000|
|Intermediate Rate||21||£24,000 – £44,273|
|Higher Rate||41||£44,273 – £150,000|
|Top Rate||46||Over £150,000|
Who pays Scottish Income Tax rates?
You will pay Scottish Income Tax rates if you are considered a Scottish taxpayer. This is decided by HMRC and is largely based on where your main home is (residency).
Do Scottish Taxpayers still get the UK Personal Allowance?
Yes, all Scottish taxpayers receive the full UK Personal Allowance, apart from the Top Rate. If you are in the Top Rate band, your Personal Allowance is reduced by £1 for every £2 you earn over £100,000.
Your tax code
Your tax code will be changed in accordance with the new income tax rates meaning you can pay more or less tax than the tax year before. You should be notified by the tax office what your new tax code will be before the start of the tax year either by post or online.
Why have the Scottish Government decided to make changes to their Income Tax bands and rates?
This is an important question. It is answered at the top of the Fact Sheet which accompanies their draft Budget proposal:
“Strong public services are vital for a thriving economy. However, continued cuts to our budget by the UK Government mean that in 2019-20 our fiscal budget allocation for day to day spending will be £200 million lower in real terms than it is this year. In the Draft Budget the Scottish Government has outlined proposals for changing the rates and bands of income tax in Scotland to raise an additional £164 million to enable the Scottish Government to fulfil our commitments to the NHS without having to reduce spending in other areas. In 2018/19, Scottish income tax receipts are forecast to raise £366m more than the corresponding block grant adjustment.”
Whilst it does mean that some Scottish taxpayers will pay more than the previous tax year and other parts of the UK, it is calculated that 55% of Scottish income tax payers will be paying less than if they lived in England, Wales or Northern Ireland. This is mainly because the 1.4million Scottish taxpayers who earn less than £26,000 will pay a bit less in the 2018-19 tax year.
More Tax Codes:
- What is a tax code?
- How do I find out my tax code?
- What do I do if my tax code is wrong?
- Do company benefits affect my tax code?
- What is a PAYE tax code notice of coding?
- What is an emergency tax code?
- What is a BR tax code?
- What does a D0 tax code mean?
- D1 tax code explained
- What is an OT tax code?
- What is an NT tax code?
- What is the 2019/2020 tax code?
- What is the 2018/2019 tax free personal allowance?
- What is the 2018/2019 tax code
- What is the 2017/2018 tax code?
- What is the 2016/2017 tax code?
- What is the tax code for the 2014/2015 tax year?
- What are the 2013 tax codes?
- Extra Statutory Concession A19