Scottish taxpayers need to check they have an ‘S’ code
Scottish taxpayers need to check they have an ‘S’ code
Anyone living in Scotland needs to make sure they are on an ‘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 which are over £75,000 and up to £125,140 face a 45% rate.
Top earners are caught by a 48% tax rate on earnings over £125,140, the same threshold as the rest of the UK, but 3% higher tax rate than colleagues south of the border. This is due to Scotland having five tax bands, although Scotland will benefit from the recent cut in National Insurance rates to 8% which applies to the whole of the UK.
Scottish income tax bands and rates 2024-25
| 2024-25 | Band | Rate |
| Starter | £12,571 – £14,876 | 19% |
| Basic | £14,877 – £26,561 | 20% |
| Intermediate | £26,562 – £43,662 | 21% |
| Higher | £43,663 – £75,000 | 42% |
| Advanced | £75,001 – £125,140 | 45% |
| Top | Above £125,140 | 48% |
If you need any assistance with regards to your payroll, please contact us at Kennedys Accounting and we will be pleased to assist.