The Scottish Budget 2023-2024 was presented to the Scottish Parliament on Thursday 15 December 2022.
The main changes are in the top two income tax rates, which will rise by a penny in the pound from April 2023 taking the higher rate from 41p to 42p and the top rate from 46p to 47p.
The threshold at which people start paying the top tax rate is to drop from its current level of £150,000 to 125,140
These new bands and rates apply to payment from 6th April 2023. The rates and contributions are applied to the pay calculation centrally within the SD Worx pay solution.
The Scottish Income Tax calculations apply to individuals who have tax codes with an ‘S’ tax code prefix.
| Scottish Tax bandwidths and rates – effective from 6th April 2023 | ||
| Starter Rate | 10% + 9% = 19% | £1 – £2,162 |
| Basic Rate | 10% + 10% = 20% | £2,163 – £13,118 |
| Intermediate Rate | 10% + 11% = 21% | £13,119 – £31,092 |
| Higher Rate | 30% + 12% = 42% | £31,093 – £125,140 |
| Additional Rate | 35% + 12% = 47% | £125,141 and above |
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