Scottish Budget confirms 2022/23 income tax rates
The devolved Scottish parliament sets its own income tax rates and thresholds. In the latest Scottish Budget, the rates for the next tax year were announced. What’s the position for Scottish taxpayers?
Where an individual is a Scottish taxpayer in a particular tax year, they are subject to the Scottish Rates of Income Tax (SRIT). These are designated by Holyrood each year. The overall position can be confusing, as SRIT only applies to earnings, self-employment profits, rental income and pension income - the main UK rates continue to apply to other income, such as dividends. Additionally, the NI bands remain aligned with the UK.
The 2021 Scottish Budget confirmed that the starter and basic rate bands will increase with inflation for 2022/23, but that the higher bands will remain frozen. This means that for 2022/23, the SRIT will be as follows:
- 19% on earnings between £12,571 to £14,667
- 20% between £14,668 to £25,296
- 21% on the chunk between £25,297 to £43,662
- 41% on income between £43,663 to £150,000
- 46% on earnings above £150,000.
Related Topics
-
Changes to registration threshold?
It’s rumoured that the Chancellor will raise the VAT registration threshold from £90,000 to £120,000 to stimulate economic growth. But other reports suggest it could be cut to £30,000 to raise revenue. What would these changes mean for your business?
-
HMRC to raid bank accounts for unpaid tax
HMRC is restarting the use of direct debt recovery for individuals and businesses who choose not to pay the tax they owe despite having the means to do so. Who’s in the firing line?
-
Mortgage interest: don’t miss out on unused relief!
You own a buy-to-let property and need to report your profits for 2024/25. You have a mortgage, but your calculations show that the tax reducer will exceed the rental profit. Will the excess go to waste?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.