Scottish Rate Tax

Scottish taxpayers dwelling in Scotland will, as of next month (April 2017), be subject to income tax rates and bands set by the Scottish Parliament. 

The bands for Scottish rate tax payers will differ from the rest of the UK with higher rate tax being paid earlier than in the rest of the UK - full details can be obtained from the Scottish Government Website

One of the implications of this change is, any employees living in Scotland should have their tax code prefixed by an S. If they do not have a tax code beginning “S”, to ensure employees are paying the correct tax on their income, employers are being advised to direct employees to call HMRC on 0300 200 3200 to request the change.