iCalculator™ AB: Scotland Tax Calculators
Welcome to iCalculator™ AB, your comprehensive suite of free tax calculators for Scotland. iCalculator™ has provided free tax calculators for Scotland since 2017. Since those early days we have extended our resources for Scotland to includes Tax Guides, Tax Videos and enhanced the tax calculators and supporting tax information. The Scotland Tax Calculator and salary calculators within our Scotland tax section are based on the latest tax rates published by the Tax Administration in Scotland for 2024. In this dedicated Tax Portal for Scotland you can access:
Scotland Tax Calculator 2024/25
The Scotland Tax Calculator below is for the 2024 tax year, the calculator allows you to calculate income tax and payroll taxes and deductions in Scotland. This includes calculations for
- Employees in Scotland to calculate their annual salary after tax.
- Employers to calculate their cost of employment for their employees in Scotland.
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Scotland, located in the northern part of the United Kingdom, occupies about one-third of the island of Great Britain. It is the most northerly of the UK's four parts and is renowned for its rugged beauty and rich cultural heritage. The land of the Scots, a Celtic people from Ireland, Scotland has an austere landscape shaped by extremes of weather. Its history, deeply interwoven with that of the rest of the UK, has been marked by both struggle and significant contributions to the world in terms of political, scientific, and technological innovations.
Scotland's economy is a mixed one, having evolved significantly since the Industrial Revolution. Historically a powerhouse in heavy industries like shipbuilding, coal mining, and steel, Scotland has shifted towards technology and services in recent times. The country has a rich legacy in diverse sectors ranging from textiles and whisky to advanced fields like avionics and microelectronics. Financial services, banking, insurance, and investment management also play a crucial role in its economic landscape. Scotland's service sector has grown to be the largest in its economy, reflecting a common trend in advanced industrial economies.
The economic governance in Scotland involves both the UK Government, which manages reserved matters, and the Scottish Government, responsible for devolved matters. The Bank of England serves as Scotland's central bank, and the Pound Sterling is the currency. Scotland is part of several major international organizations, including the Commonwealth of Nations, the G7, and the United Nations. Key economic sectors include information systems, defence, electronics, and a robust financial sector. Edinburgh is notable as a financial hub, while Glasgow is a major manufacturing center. Aberdeen plays a pivotal role in the North Sea oil and gas industry.
Scotland's culture, characterized by a blend of historical richness and modern dynamism, continues to attract global attention. Its contributions to democracy, innovation, and the arts have left a lasting impact worldwide. This combination of a resilient economy and a vibrant cultural scene makes Scotland a unique and influential part of the United Kingdom and the world at large.
Overview of Taxation in Scotland
Taxation in Scotland encompasses obligations to three distinct levels of government: the UK government, the Scottish Government, and local government. The system is characterized by a mix of national and local taxes, each with its own set of rules and compliance requirements.
- Income Tax: The Scottish Parliament has the authority to set rates and bands for income tax on non-savings and non-dividend income, although the personal allowance is determined by the UK Parliament.
- Land and Buildings Transaction Tax (LBTT): This tax replaces the Stamp Duty Land Tax and is applied to land and property transactions in Scotland.
- Landfill Tax: Levied on the disposal of waste to landfill, this tax encourages waste reduction and environmentally friendly disposal methods.
- Air Departure Tax: Intended to replace the UK Air Passenger Duty, this tax is applied to passengers flying from Scottish airports.
- Council Tax: A local taxation system on domestic properties, providing significant funding for local governments.
- Business Rates (Non-Domestic Rates): Levied on non-domestic properties, this is a crucial revenue source for local governments.
Compliance and Management
Scotland's tax compliance and management involve various entities:
- The Scottish Government administers and collects taxes like LBTT and Landfill Tax through Revenue Scotland.
- HM Revenue and Customs (HMRC) is responsible for collecting income tax in Scotland.
- Local Authorities collect Council Tax and Business Rates.
The Scotland Acts of 1998, 2012, and 2016 have progressively devolved more powers to the Scottish Parliament, including the ability to set income tax rates and bands. However, over half of all taxes collected in Scotland remain under the direct control of the UK Parliament, encompassing taxes like Corporation Tax, National Insurance, and Value-Added Tax (VAT).
This system reflects Scotland's unique position within the United Kingdom, balancing devolved and reserved powers in its economic management.