Scottish Income Tax Changes 2018/19
Post Author:
Angie Harvey
Date Posted:
March 16, 2018
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There will be new income tax rates and bands for Scotland with effect from April 2018. The same Basic Personal Allowance as the rest of the UK of £11,850 will apply, however the income tax bands and rates will vary as follows:
| Rate | Bandwidths £ | Band Name |
| 19% | Over £11,850*- £13,850 | Starter Rate |
| 20% | £13,851 – £24,000 | Basic Rate |
| 21% | £24,001 – £43,430 | Intermediate Rate |
| 41% | £43,431 – £150,000** | Higher Rate |
| 46% | Over 150,000** | Top Rate |
* This assumes that individuals are entitled to the personal allowance of £11,850.
** The personal allowance is reduced by £1 for every £2 of income over £100,000.
Please note that these rates will only affect non-savings income, such as employment income, self-employment income, pension income and rental income.
Interest and dividends will continue to be taxed at the UK rates.
If you operate payroll it is important to note that those employees who live in Scotland need to ensure HMRC have their current address details, so that they pay the correct amount of tax.
Every employee has access to their Personal Tax Account, meaning they can access their tax information and update their personal details with HMRC online. You can find more details here:
You can be assured that if your payroll is outsourced to Johnston Smillie, our dedicated payroll team will routinely take care of any payroll legislation changes for you.
If you would like to find out more about our payroll services, please contact Julie Hunter on 0131 317 7377 or email Julie Hunter
