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MSE News: Scottish income tax shake-up - how what you pay will change

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The Scottish Government has announced changes to income tax bands which could see some middle earners pay more tax from next April...
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'Scottish income tax shake-up - how what you pay will change'
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  • One-Eye
    One-Eye Posts: 70,025 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    no-one earning less than £33,000 will pay any more in tax than they do now

    Although mathematically true it relies on fiscal drag. It is misleading and ignores the effect of increasing the personal allowance to £11850 in the rest of the UK. A more realistic statement is:

    "Everyone earning over £26,000 will pay more tax than they would in England"

    Doesn't sound so good does it.
  • One-Eye
    One-Eye Posts: 70,025 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Table showing effect of the proposals

    SALARY....... TAX .......... TAX ............ TAX
    .......... UK 17/18 ... Scotland 18/19 ... England 18/19
    15000 ....... 700 .......... 610 ............ 630
    20000 ...... 1700 ......... 1610 ........... 1630
    26000 ...... 2900 ......... 2830 ........... 2830
    30000 ...... 3700 ......... 3670 ........... 3630
    33000 ...... 4300 ......... 4300 ........... 4230
    40000 ...... 5700 ......... 5770 ........... 5630
  • VT82
    VT82 Posts: 1,085 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    The tiny 19% band is a waste of time, and has purely been put in so they can fudge the numbers this time round.

    The fact that they increased the higher rate from 45% to 46%, nowhere near even the 50% it was under the last Labour government, shows that despite showing all the signs of being fervently left-wing, even the SNP realise that the politics of envy against the well off is stupid when it comes to the crunch. I hope Labour take note.
  • like most things in life, there is cost and there is value
  • Is the rest of the UK saddled with the cost of ensuring the HMRCs systems can cope with this change?
  • System
    System Posts: 178,348 Community Admin
    10,000 Posts Photogenic Name Dropper
    Is the rest of the UK saddled with the cost of ensuring the HMRCs systems can cope with this change?

    Is Scotland saddled with the cost of weapons of mass destruction and the Little Englander Brexit ?
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • Heng_Leng wrote: »
    Is Scotland saddled with the cost of weapons of mass destruction and the Little Englander Brexit ?

    Am guessing that's a yes to my original question.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    edited 16 December 2017 at 12:12AM
    According to the national audit office the Scottish government pays. Guess the bill for 2018:19 might go up a little given how complicated they're intending to make it :o

    https://www.nao.org.uk/press-release/scottish-rate-of-income-tax-2016-17/
  • My understanding is that the Scottish Government has been/ continues to be responsible for both the cost of HMRC IT changes and additional administration costs relating to the SRIT.


    I'm not sure whether the Welsh Assembly will have similar responsibilities in respect of the WRIT
  • Well Scotland better start saving up now for the 2018:19 bill!!
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