LinkedIn page
0 £0.00
This item was added to your bag
Reward Strategy. Incoporating Payroll World.

Scottish tax: Certainty for the year ahead

Finance secretary Derek Mackay MSP presented his draft budget for 2018/19 in December, suggesting five tax bands and five different rates of income tax.

TwitterLinkedIn

However, the Scottish National Party (SNP) runs a minority government in Scotland and as such, it was always going to be essential that a consensus was reached with other parties to get the budget passed through to the all-important Scottish rate resolution on February 21 2018.

 

This will allow UK payroll and software professionals to know the rates that will apply to non-savings and non-dividend taxable income (NSND) for Scottish taxpayers.

 

In a statement from the Scottish Parliament, on January 31 2018, Mackay announced a consensus agreement with the Scottish Greens. Importantly, this agreement lasts through all stages of the Scottish budget scrutiny process, right up the stage three which passes the all-important resolution.

 

So, assuming that nothing goes wrong in the meantime, we seem to know for sure the rates and thresholds that will apply to NSND taxable income for Scottish taxpayers for 2018/19.

 

Including the value of the UK-wide personal allowance of £11,850 for 2018/19, this gives the following, with a comparison to 2017/18:

 

Band

2017/18

Rate

2018/19

Rate

 

£

%

£

%

Scottish starter

N/A

N/A

11,850 – 13,850

19

Scottish basic

11,500 – 43,000

20

13,851 – 24,000

20

Scottish intermediate

N/A

N/A

24,001 – 43,430

21

Scottish higher

43,001 – 150,000

40

43,431 – 150,000

41

Scottish additional/top

Over 150,000

45

Over 150,000

46

 

 

 

 

I stress again that we seem to have clarity, but nothing is absolutely final until the Scottish rate resolution is passed on February 21 2018.

TwitterLinkedIn
Add New Comment
LoginRegister

You might also like

Government may intervene if businesses don't “step up” on executive pay

Government may intervene if businesses don't “step up” on executive pay


Apprenticeship service rollout delayed 

Apprenticeship service rollout delayed 


The Rewards 2018: Entries close Friday

The Rewards 2018: Entries close Friday


BEIS Committee calls for companies with 50+ employees to publish GPG

BEIS Committee calls for companies with 50+ employees to publish GPG

LATEST PAYROLL AND REWARDS NEWS IN YOUR INBOX

Reward Strategy homepage
Reward Strategy RSS

Did you find our website useful?

Thank you for your input

Thank you for your feedback

reward-strategy.com - an online news and information service for the UK’s payroll, reward, pensions, benefits and HR sectors. reward-strategy.com is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Reward Strategy is committed to diversity in the workplace.
© Copyright Shard Financial Media Ltd
We use cookies so we can provide you with the best online experience. By continuing to browse this site you are agreeing to our use of cookies. Click on the banner to find out more.
Cookie Settings