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Scottish Income Tax Rates and how to check if it applies to you

Posted by Tom West on Mar 10th, 2020 | Tax

Scottish Income Tax Rates | Scottish money | Crunch

The Scottish Government has operated a different income tax regime compared to the rest of the UK since the 2018/19 tax year. This means anyone resident in Scotland pays different income tax rates, using more bands and thresholds compared to the rest of the UK.

The Scottish income tax rates, bands and thresholds for the 2020/21 tax year, and the previous tax year are shown below.

Scottish Income Tax Rates and Thresholds and changes for 2020/21

2019/20 tax year 2020/21  tax year
Band name Tax Rate Tax Bands and Thresholds
Starter rate 19% £12,501* – £14,549 £12,501* – £14,585
Basic rate 20% £14,550 – £24,944 £14,586 – £25,158
Intermediate 21% £24,945 – £43,430 £25,159 – £43,430
Higher rate 41% £43,431 – £150,000 £43,431 – £150,000
Additional rate 46% Over £150,000 Over £150,000

*Personal Allowance is £12,500 for both tax years

The above table assumes the individual is receiving the Personal Allowance for tax-free income of £12,500.  The Personal Allowance is reduced by £1 for every £2 earned over £100,000. This is the same as the rest of the UK.

Who is a Scottish taxpayer?

HMRC will determine whether or not you’re a Scottish taxpayer based on your main place of residence. The Scottish rate of Income Tax is payable for the full year.

Anyone identified as a Scottish taxpayer will have an “S” prefix attached to their PAYE tax code.

What to do if you’re a Crunch client

Crunch clients who are resident in Scotland need to be aware of these changes so they can estimate their tax liabilities going forward.

If you are resident in Scotland, even for part of the year, please ensure Crunch and HMRC have been notified. This will ensure you are paying tax correctly.

If you have any questions, please contact your client managers.

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