Scottish tax: how much do I pay if there are changes to the maximum rate?

The changes come as ministers claim the reforms would allow them to raise an extra £129m in 2023/24.

The tax changes were originally announced by former Deputy First Secretary John Swinney and passed with the approval of MSPs earlier this year.

Given these changes, many will be wondering how this will affect their rate and how much they will pay in the future.

HeraldScotland: (PA) Deputy First Minister Shona Robison said the change would(PA) Deputy First Minister Shona Robison said the change would “strengthen our social contract with the people of Scotland”. (Image: PA)

Why has the Scottish Government changed the top tax rate?

New Deputy First Minister Shona Robison said the changes represented a “fairer” tax system, ensuring those who are able contribute more.

It is said that this will “boost” the Scottish Government’s ability to continue offering schemes such as free prescriptions.

Robison said: “The decisions we have made on income tax are fair and progressive in ensuring that those who can contribute more.

“They strengthen our social contract with the people of Scotland, who will continue to enjoy many benefits unavailable in the rest of the UK, such as B. Free recipes.

“The additional revenue will help us invest in our vital public services, including the NHS, beyond the funding received from the UK Government.

“At the same time, the majority of taxpayers in Scotland still pay less income tax than if they lived in the rest of the UK.

“Now that the new financial year has started, I would like to encourage people to check on the first pay slip that the tax number is correct.

“If you think your tax number is wrong you can check your details with HMRC who can help you.”

HeraldScotland: (PA) The higher and top tax rates are changed to 42p and 47p respectively(PA) The higher and upper tax rates are changed to 42p and 47p (Image: PA)

How much tax will I pay if there are changes to the maximum tax rates in Scotland?

The tax reforms will result in both top and top income tax rates increasing by 1p, resulting in increases to 42p and 47p respectively.

While the threshold for the 42p rate is frozen, all Scots earning £125,140 or more a year will pay the very highest rate of tax.

The 42p rate applies to those earning between £43,663 and £125,140 a year.

Rates for lower-income Scots remain the same, with those earning £14,733 to £25,688 taxed at a rate of 20p.

How do top taxes in Scotland compare to those in England?

The top tax rate now differs from that in England, with those at the higher English tax rate (£50,271 to £125,140) being taxed at 40p while those at the additional tax rate (above £125,140) are taxed at 45p.

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