March 30, 2017

Scottish Tax Rate

You pay the Scottish rate of income tax if you are a resident in Scotland. By living in Scotland, your income tax is paid to the Scottish Government. The income tax applies to your wages, pension and anything else that is classed as taxable income. For example, income from a trust or some state benefits. If you need more information about this, a Glasgow accountant will be happy to help!

What to Pay Under the Scottish Tax Rate

The Scottish rate of income tax is currently 10%, but you pay the same overall rate of income tax as the rest of the people in the UK. The basic taxpayer will pay a rate of 20%, in Scotland. The tax rate you pay will depend on your annual income.

Who has to pay the Scottish Rate?

Scottish Tax Rate


People who live in Scotland pay the Scottish rate of tax. If you move to or from Scotland on or after 6th April 2016, you must inform HMRC of the new address. If you do not do this, you may pay the wrong tax rate! Live in more than one home? If you have a home in Scotland and somewhere else in the UK, you need to know which one of your homes is the main one. The main home is the one where you spend most of your time. It does not matter if you live in it for free, own it or rent it. If you are unsure of which home is your main one, HMRC holds detailed informed about these matters. Also, if you cannot identify anywhere as your home, you must work out if you are a Scottish tax payer depending on how many days you spend in Scotland, compared to where you spend your time elsewhere.

How to pay the Scottish Rate?

Scottish Tax Rate


People who are employed and people who receive a pension have a tax code that starts with the letter ‘S.’ This informs your employer or pension provider that they have to deduct tax at the Scottish rate. Most people’s tax code will be S1100L for the current tax year, if they pay the Scottish tax rate and have the standard personal allowance of £11,000. The personal allowance is withdrawn at a rate of £1 for every £2 of income above £100,000

If you would like more information as to how what tax rate you fall into and if you should be paying the Scottish rate, contact us.