The Scottish Government has proposed new rates of income tax for 2022-23, which could affect your future tax bill.
New proposed tax bands
- Personal allowance (tax-free) = £12,570
- Starter rate (19 per cent): over £12,570 – £14,732
- Basic rate (20 per cent): over £14,732- £25,688
- Intermediate rate (21 per cent): over £25,688 – £43,662
- Higher rate (41 per cent): over £43,662 – £150,000
- Top rate (46 per cent): over £150,000
What do these changes mean?
According to the Scottish Government’s proposal, in the tax year 2022-23, starter and basic tax rates are set to increase in line with inflation. The other rates will remain the same as the previous year for Scottish taxpayers.
However, for individuals in the higher and top tax bands earning more than £100,000, £1 will be deducted from their personal allowance for every £2 earned above £100,000.
As additionally outlined by the proposal, taxpayers in Scotland will pay no more Income Tax than they did in 2021/22 on their current income. The Scottish Fiscal Commission reported that the new tax bands could raise £13,671 million across the year.
For Scottish taxpayers, these new rates and thresholds could have a big impact on the amount of tax that they pay.
If you need assistance calculating your income tax, get in touch with our experts today.
