Scottish Budget confirms 2022/23 income tax rates
The devolved Scottish parliament sets its own income tax rates and thresholds. In the latest Scottish Budget, the rates for the next tax year were announced. What’s the position for Scottish taxpayers?
Where an individual is a Scottish taxpayer in a particular tax year, they are subject to the Scottish Rates of Income Tax (SRIT). These are designated by Holyrood each year. The overall position can be confusing, as SRIT only applies to earnings, self-employment profits, rental income and pension income - the main UK rates continue to apply to other income, such as dividends. Additionally, the NI bands remain aligned with the UK.
The 2021 Scottish Budget confirmed that the starter and basic rate bands will increase with inflation for 2022/23, but that the higher bands will remain frozen. This means that for 2022/23, the SRIT will be as follows:
- 19% on earnings between £12,571 to £14,667
- 20% between £14,668 to £25,296
- 21% on the chunk between £25,297 to £43,662
- 41% on income between £43,663 to £150,000
- 46% on earnings above £150,000.
Related Topics
-
CT61
-
Repayment thresholds for student finance confirmed
Repaying student finance can seem complicated, with a number of different plan types each having different repayment thresholds. The thresholds for the forthcoming year have just been confirmed. What’s the full story?
-
Advance assurance pilot confirmed
There have been a number of changes to how research and development tax credits are claimed in recent years. HMRC has now confirmed that a pilot of a new clearance procedure will begin later this year. What do we know so far?