BREAKING NEWS (19/12/2023)! Scotland will now have 7 distinct rates or bands of tax whereas the rest of the UK will still have 4. Could this get any more confusing?
Basically, in the Rest of the UK (R.UK) there are 4 income tax rates as follows:
| Income | Rate | Name |
| Up to £12,570 | 0% | Personal Allowance |
| £12,571 to £50,270 | 20% | Basic rate |
| £50,271 to £125,140 | 40% | Higher rate |
| Over £125,140 | 45% | Additional rate |
Whereas Scotland has 6 thus:
| Income | Rate | Name |
| Up to £12,570 | 0% | Personal Allowance |
| £12,571 to £14,732 | 19% | Starter rate |
| £14,733 to £25,688 | 20% | Basic rate |
| £25,689 to £43,662 | 21% | Intermediate rate |
| £43,663 to £150,000 | 41% | Higher rate |
| Over £150,000 | 46% | Additional rate |
Now if that wasn’t complicated enough, Scotland have today (19/12/2023) announced a new “advanced rate” of 45% from £75,000 of income meaning it will have 7 rates of tax.
We do have some Scottish clients so will be working this through and understanding how this affects them. If you are English, Welsh or Northern Irish – just be glad you don’t live that far North!