You pay the Scottish rate of Income Tax if you live in Scotland.
This means some of your Income Tax is paid to the Scottish Government.
It applies to your wages, pension and most other taxable income.
Your Personal Allowance - the amount of income you don’t pay tax on - stays the same. You’ll also pay the same tax as the rest of the UK on dividends and savings interest.
What you’ll pay under the Scottish rate
The Scottish rate of Income Tax is 10% but you pay the same overall rate of Income Tax as people in the rest of the UK. This is whether you pay the basic, higher or additional rates.
The table shows the total rate you pay if your Personal Allowance is £11,000. You don’t get a Personal Allowance if you pay additional rate tax.
|UK rate for England, Wales and Northern Ireland||Income band||UK rate paid in Scotland||Scottish rate||Total rate for Scottish taxpayers|
|Basic rate 20%||£11,001 - £43,000||10%||10%||20%|
|Higher rate 40%||£43,001 - £150,000||30%||10%||40%|
|Additional rate 45%||Over £150,000||35%||10%||45%|
Who pays the Scottish rate
You pay the Scottish rate if you live in Scotland.
Work out if you’ll pay the Scottish rate if you do any of the following:
- move to or from Scotland
- live in a home in Scotland and one elsewhere in the UK, eg for work
- you don’t have a home and you stay in Scotland regularly, eg you stay offshore or in hotels
The tax year is from 6 April to 5 April the following year.
What happens next
You’ll get a letter from HM Revenue and Customs (HMRC) if they think you should pay the Scottish rate of Income Tax.
You must update your address with HMRC if your main home is in Scotland and you don’t get a letter by the end of February.
How you pay the Scottish rate
If you’re employed or get a pension, your tax code will start with an ‘S’. This tells your employer or pension provider to deduct tax at the Scottish rate.
Most people’s tax code will be S1100L if they pay the Scottish rate and get the standard Personal Allowance.
If you fill in a Self Assessment tax return for the 2016 to 2017 tax year, there’ll be a box for you to tell HMRC you pay the Scottish rate.