Scottish Rate of Income Tax SRIT
Published / Last Updated on 06/04/2024
The Scottish Rate of Income Tax (SRIT)
(UK Income Tax National Rates for the rest of UK)
The first thing is to undertand is normal/national UK rates of income tax:
- Basic rate income tax 20.00%
- Higher rate income tax 40.00%
- Additional rate income tax 45.00%
Scottish rates of income tax started on 6 April 2016 and are different to the rest of the UK.
What are the current Scottish Rates of Income Tax?
Scottish Income Tax Rates For Tax Year 2024 (06/04/2024 to 05/04/2025)
Personal allowances
The amount you can earn/pension income before tax is deducted i.e. no tax to pay. The current personal allowances are:
- Born After 05/04/1938 - £12,570.00
- Born before 06/04/1938 - £12,570.00
- Additional Blind Person's Allowance - £3,070.00
Note: Personal allowances may be lower if have income in excess of what you have underpaid tax in the past or if you have adjustments for taxable benefits in kind such as private medical insurance and a company car or are a higher earner where your personal allowance has been reduced. Personal allowances may even be higher if you claim for things like uniform cleaning and other allowances.
Scottish Tax Rates and Tax Bands
Income above your 'tax free' personal allowances is charged at the following rates:
Working Out The Tax - How it works - work out taxable income first
- From Gross/Total Income deduct your personal allowance. This is your taxable income.
Income Tax Rates for Scotland (Non-Savings and Non-Dividend Income) for Tax Year 2024
- Starter Rate: 19.00% payable on taxable income between £0 and £2,306.
- Basic Rate: 20.00% payable on taxable income between £2,306 and £13,991.
- Intermediate Rate: 21.00% payable on taxable income between £13,991 and £31,092.
- Higher Rate: 42.00% payable on taxable income between £31,092 and £62,430.
- Advanced Rate: 45.00% payable on taxable income between £62,430 and £125,140.
- Top Rate: 48.00% payable on taxable income in excess of £125,140 i.e. £125,141 and upwards.
How will I be paid?
Your payroll runs as normal and your employer will pay income taxes to HMRC. Your tax returns are completed as normal and administered by HMRC.
How do they know I am a Scottish Taxpayer?
- Both HMRC and your employer apply address checks.
- You should notify HMRC that you are resident in Scotland if you move there.
"S" on National Insurance Number
Your national insurance number currently reads two letters then 6 numbers then a letter e.g. "XX 12 34 56 S"
The last letter in your national insurance number is changed to the letter "S" to designate that you are tax resident in Scotland.
What about tax relief on Pensions?
Currently, tax relief on pension contributions works the same way, but we are awaiting potential changes to tax relief overall (these were postponed by former Chancellor George Osborne following the Brexit vote).