Make sure you are on a ‘S’ tax code to ensure they are paying the correct tax.

Scottish rates are significantly higher for anyone earning over £43,663 with a 42% higher rate of tax, while those with incomes over £75,000 and up to £125,140 face a 45% rate.

Those over £100,000 will also be affected by the abatement of personal allowances substantially affecting the marginal rate of tax. So, from £100,000 to 125140, the effective rate is 67.5%.

Top earners are caught by a 48% rate on earnings over £125,140, the same threshold as the rest of the UK, but a 3% higher tax rate than colleagues south of the border.

Scotland has five tax bands and rates and has also been hit by the UK wide freeze in thresholds at £12,570, which would have seen tax liability hiked again, save for the two cuts in non-devolved National Insurance this year.

Anyone earning over £26,561 will pay a higher tax rate than the rest of the UK at 21%, compared to 20% for everyone else. The cut in National Insurance rates to 8% does however also apply in Scotland.

You should check your first payslip in April to make sure your address is correct and that your tax code starts with an ‘S’ and that any charges for benefits in kind are properly reflected in your code. This should ensure that you are paying the right amount of tax on your income.



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