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
-
HMRC reminds employers about payrolling benefits deadlines
HMRC is reminding employers of key dates and preparations ahead of the transition to real-time payrolling of benefits in kind (BiKs). With an important voluntary registration deadline approaching, what do payroll teams need to know?
-
Why do frozen mileage rates affect VAT?
Your business pays a fixed mileage allowance to staff who use their private cars for business travel. The rates published by HMRC have been frozen since 2011 but is this relevant to determine how much input tax you can claim on the payments?
-
HMRC restarts direct recovery of tax debts from bank accounts
HMRC has resumed use of its Direct Recovery of Debts (DRD) powers, enabling it to recover unpaid tax directly from the bank accounts of businesses and individuals who have ignored repeated attempts to settle outstanding liabilities. What does this mean in practice for business owners and directors?