Scotland’s new income tax rates which came into force on 6th April 2018 are set to bring in an additional £428million for public services.
A Starter Rate of Tax has been put in place to protect those on low incomes. Here’s what you will pay.
1.4 million tax payers (55%) in Scotland will pay less than in rUK and for any level of income 70% of Scottish tax payers will now be paying less than they did last year. This is possible due to higher earners paying slightly more and the introduction of more levels, going from 3 to 5, to make it more of a progressive system.
Here is the comparison with Tax rates in rUK.
You can see the difference the Starter Rate makes in Scotland to those on lower wages compared to rUK.
The Intermediate Rate in Scotland will also see those earning between £34,500 and £44,273 pay 21% compared to rUK where they would be paying 40%.
An increase in the personal allowance has also meant that many will be paying less than they did last year.