Back in the budget of 2016 the Chancellor confirmed the higher rate threshold would be £45,000 for the UK. However soon after the Scottish First Minister broke with tradition and announced that Scotland would not be applying the change for 2017.
This has meant a major change to how we calculate tax throughout the 4 nations and meant the creation of separate tax tables for employees with “S” tax codes.
Initially employers were told that the Scottish threshold would increase to £43,430 – significantly lower than the rest of the UK however recently the Scottish Parliament re-confirmed their proposal in this years “Budget Bill” that there would be no increase at all and on the 21st of February passed measures to bring this in to effect meaning the higher rate threshold would remain at £43,000 - £2000 less than the rest of the countries and could mean a Scottish taxpayer could be paying up to £400 more than the rUK. This will therefore come in to effect from the 6th of April.
So assuming employee’s receive a standard tax free allowance:
