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How do I apply the Scottish tax rate to my return and what impact does this have?

When using TaxCalc, the tax return should automatically have the tax rate applied based on the postcode of the address on the return. Therefore the return will automatically apply the Scottish rate if there is a Scottish postcode. If this doesn't happen, please ensure that you are running the latest version of TaxCalc before trying again.

If for any reason, you need to manually change the option applied by TaxCalc, please complete the below steps:

SimpleStep Mode: Personal details > Your address > Select the applicable radio button on screen as to which tax rates to use.

HMRC Forms Mode: SA100 Core Return > Page 1 or click on personal details

The What if planner also provides updated calculations in line with the underlying rules applying to residents of Scotland. 

How do the calculations differ between the United Kingdom and Scotland? 

2019/2020

Band

Taxable income

Scottish tax rate

Band

Taxable income

UK tax rate

Personal Allowance

Up to £12.500

0%

Personal allowance

Up to £12,500

0%

Starter rate

£12,500 to £14,549

19%

-

Basic rate

£14,549 to £24,944

20%

Basic rate


£12,501 to £50,000

20%

Intermediate rate

£24,944 to £43,430

21%

-

Higher rate

£43,430 to £150,000

41%

Higher rate


£50,001 to £150,000

40%

Top rate

over £150,000

46%

Additional rate

over £150,000

45%

2018/19

Below are the 2 tables based on whether the UK or Scottish tax rates are applied to the return.

Band Taxable income Scottish tax rate Band Taxable income UK tax rate
Personal Allowance Up to £11,850 0% Personal allowance Up to £11,850 0%
Starter rate £11,851 to £13,850 19% -
Basic rate £13,851 to £24,000 20% Basic rate £11,851 to £46,350 20%
Intermediate rate £24,001 to £43,430 21% -
Higher rate £43,431 to £150,000 41% Higher rate £46,351 to £150,000 40%
Top rate over £150,000 46% Additional rate over £150,000 45%

Previous years:

2016/17

There are no differences between the rates of tax and associated rate bands between residents of Scotland and the remainder of the United Kingdom for 2016/17.

2017/18

The Scottish Government legislated to change the basic rate band to £43,000. This applies to non-savings income only, such as salary from Employment and profits from Self employment. Savings and dividend income will be assessed to tax based upon the rates of tax and rate bands applying to the rest of the UK.

Below is an example of the effect of the difference in the basic rate bands have.

Please refer to the HMRC website on what the Scottish Rate of Income Tax is and how it works.