Income Tax Rates - England and Scotland

[scotia]

The Scottish Parliament announced the Scottish Income Tax Rates for 2023-2024 yesterday, so I had a look at how these compared with the English Income Tax Rates. The Scottish Rates are

And the English Rates are


I have carried out a comparison for Incomes from 20000 to 60000, which probably encompasses the majority of UK taxpayers



I checked my computer calculations with some hand computations - but please report any discrepancies that you may find.

[Lootman]

Your line for the 20% rate in England contains an error in its "to" amount.

As an ignorant English person may I ask if Nicola can apply any tax rates she wants? Or can she only deviate from English rates by a certain capped amount?

[Alaric]

As an ignorant English person may I ask if Nicola can apply any tax rates she wants? Or can she only deviate from English rates by a certain capped amount?

I think she can go 3% in either direction. It seems she can also add complexity by introducing new tax bands.

[Tedx]

Is it 3% or 3p? I forget. Mind you, I thought that authority had expired unused years ago.

They have removed the cap on Council Tax though, so if you have a house, brace yourself. If you have a great big house, it's probably best to sit down and weep.

[Lootman]

Is it 3% or 3p? I forget. Mind you, I thought that authority had expired unused years ago.

They have removed the cap on Council Tax though, so if you have a house, brace yourself. If you have a great big house, it's probably best to sit down and weep.

My sense is that Nicola never met a tax increase she didn't like.

She won't be happy until she owns the entire net wealth of Scotland, and maybe not even then.

[scotia]

Your line for the 20% rate in England contains an error in its "to" amount.

As an ignorant English person may I ask if Nicola can apply any tax rates she wants? Or can she only deviate from English rates by a certain capped amount?

Yes - a mis type - 5270 should be 50270. I think there would have been some squealing if the 40% band started at the lower figure.
Originally in 1999 the Scottish Parliament was allowed to vary the Income Tax rate by 3%, however in 2012 and in 2016 the restrictions were eased, and now I believe that (only) the Income Tax personal allowance (Zero Rate band) remains in the control of the UK parliament. Savings and Dividend Tax also are set by the UK parliament, as does the Charity Tax payment of 20%. This means that a Scottish Tax payer will receive a (small) tax rebate on the 21% band, as well as the 42% band, for Charitable donations.
I am long-retired, so I pay no National Insurance. However I believe that the National Insurance Rate is substantially reduced at the English Higher Tax rate boundary (£50270), and this is also applied in Scotland - so while a Scot pays 42% at £43663, they continue to pay the higher National Insurance Rate until the £50270 boundary is reached. I'll leave you to work out what their marginal tax rate is (including NI) from £43663 to £50270

[scotia]

I am long-retired, so I pay no National Insurance. However I believe that the National Insurance Rate is substantially reduced at the English Higher Tax rate boundary (£50270), and this is also applied in Scotland - so while a Scot pays 42% at £43663, they continue to pay the higher National Insurance Rate until the £50270 boundary is reached. I'll leave you to work out what their marginal tax rate is (including NI) from £43663 to £50270

Why Scots pay a marginal rate of 54% compared to 32% in England

https://www.heraldscotland.com/politics ... d/?ref=rss

[EverybodyKnows]

Is it 3% or 3p? I forget. Mind you, I thought that authority had expired unused years ago.

They have removed the cap on Council Tax though, so if you have a house, brace yourself. If you have a great big house, it's probably best to sit down and weep.

My sense is that Nicola never met a tax increase she didn't like.

She won't be happy until she owns the entire net wealth of Scotland, and maybe not even then.

Given their repeated failure to reform Council Tax I would disagreed. Council tax has long been a pledge of theirs and it is overdue. I would expect significant rises for many albeit to rates still lower than in say England.

They have missed a trick on it.