The key income tax changes taking force from 6 April 2024 in Scotland were announced by the SNP’s Finance Secretary, Shona Robison, as she released a new plan for Scottish income tax rates which will impact payroll operations. The Scottish Government also announced a newly introduced 45 per cent income tax band for people earning between £75,000 and £125,140 per year.
In addition to this new income tax level, the top rate of tax paid by those earning above the £125,140 rate will also rise from 47 per cent to 48 per cent from April 2024. A 42 per cent rate will remain in place for those earning between £43,633 and £75,000 — and the £43,633 threshold will remain in place for the 2024-2025 tax year.
In the rest of the UK, a higher rate of 40 per cent is currently in place on income between £50,271 and £125,140, with all earnings above that taxed at a higher 45 per cent rate.
This latest update comes following the UK Government’s update to National Insurance Contribution rates outlined in the Autumn Statement – more here.
Staying up to date with constant changes to social, public and tax policy and manual updates of internal payroll processes can be costly, resource-heavy and time-consuming. ensure you keep on top of it all by using Liquid Payroll, which handles all of your Payroll processing and filing needs at a very affordable price.
Call 0161 413 5050 or email email@example.com for a no obligation online walk through the software and an opportunity to discuss your requirements in detail with one of our experts.