Posted on July 19, 2018
Anyone earning more than about £26,000 in Scotland now pays more income tax than they would if they lived elsewhere in the UK. The MoD says about 8,000 military personnel have been affected. They will now be reimbursed with an annual payment to ensure all military staff pay the same tax. Income tax rates and bands have been devolved to Holyrood, with the Scottish government using its new powers to introduce what it says is a more “progressive” taxation system than the three-band system in place elsewhere in the UK. The new Scottish system adds a 19% “starter” rate for those on low incomes, as well as a 21% rate for those who earn above £24,000. It also adds a penny to the higher and top rates, bringing them to 41% and 46%.