Scottish income tax rates and bands confirmed for 2018-19

21 February 2018

The rates and thresholds proposed by the Scottish Government have been approved by the Scottish Parliament and will take effect from 6 April 2018.

2018-19	Scottish rate	Rest of UK rate
Starter rate	19% (if you earn between £11,850 and £13,850	N/A
Basic rate	20% (if you earn between £13,851 and £24,000)	20% (if you earn between £11,851 and £46,350)
Intermediate rate	21% (if you earn between £24,001 and £43,430)	N/A
Higher rate	41% (if you earn between £43,431 and £150,000)	40% (if you earn between £46,351 and £150,000
Top rate	46% (if you earn over £150,000)	45% (if you earn over £150,000**)

These figures assume individuals are in receipt of the standard UK personal allowance.

Those earning more than £100,000 will see their personal allowance reduced by £1 for every £2 earned over £100,000.

 

Pension schemes relief at source

Following confirmation of the rates and bands on 20 February 2018, HMRC has published a new pension schemes relief at source for Scottish Income Tax newsletter which provides information to help clarify how the mechanisms for providing pension tax relief will operate in respect of Scottish taxpayers.

Rates and thresholds for employers 2018 to 2019

The rates and thresholds on GOV.UK have also been updated to reflect the approved proposals to Scottish income tax.

 

• PAYE
• Payroll
• Pensions