Income Tax in Scotland

The Scottish parliament has introduced new bands and rates of income tax. For tax year 2024/25 these are:

    Starter Rate: 19% on first £2306

    Basic Rate: 20% on next £11685

    Intermediate Rate: 21% on next £17101

    Higher Rate: 42% on next £31338

    Advanced Rate: 45% up to £125140

    Top Rate: 47% above £125140

For the rest of the UK the rates are:

    Basic Rate: 20% on first £37500

    Higher Rate: 40% up to £125140

    Additional Rate: 45% above £125140

The differences in tax paid in the new bands for someone with a taxable income above the personal allowance of £31092 or more are:

    Starter Rate: £23.06 pa tax saving

    Intermediate Rate: £171.01 pa extra tax

To approximately model these changes in Cashflow Pro make adjustments on the Tax tab.

    Personal Allowance: Reduce by £740

    Basic Rate Band: Reduce to £31092

    Higher Rate: Increase to 42%