Scotland Tax Tables 2024 - Tax Rates and Thresholds in Scotland
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This page contains the tax table information used for the calculation of tax and payroll deductions in Scotland in 2024, looking for alternate UK tax tables? Find them here: England Tax Tables, Northern Ireland Tax Tables and Wales Tax Tables. These tax tables are used for the tax and payroll calculators published on iCalculator™ AB, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Scotland or would like to add to or suggest amendments to the information herein then please contact us.
2024 Tax Tables [Quick Links]
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2024 Tax Year Update: Scotland's Updated Tax Structure for High-Income Earners
Scotland has instituted a fresh tax bracket for individuals with high incomes. Now, anyone earning above £75,000 will be subjected to a 45% tax rate. This change adds a new dimension to Scotland's tax landscape, which previously held the highest tax rate in the UK at 47% for earnings over £125,000.
Moreover, the existing top tax rate is set to increase to 48% next year, marking a continuous effort to adjust tax bands in Scotland. The introduction of this new tax band brings the total number of income tax bands in Scotland to six, compared to three in the rest of the UK.
In a comparative analysis, Scottish earners with an annual income of £100,000 or more will pay an additional £3,346 in taxes compared to their counterparts in other parts of the UK. Furthermore, those earning more than £28,850 in Scotland will face higher tax rates than workers in other regions of Britain.
The announcement of these tax changes was made by Deputy First Minister and Finance Secretary Shona Robison during her presentation of the Scottish budget at Holyrood on Tuesday, 19th December 2023. These adjustments are strategically implemented to address a £1.5 billion deficit in Scotland's financial resources.
Scotland Personal Income Tax Tables in 2024
The Income tax rates and personal allowances in Scotland are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Scotland Tax Calculator 2024.
Scotland provides an annual "Standard Deduction" that is deducted from your total income to produce your taxable income in Scotland in 2024:
Scotland Standard Deduction in 2024| Residence Status | Standard Deduction |
|---|
| Resident | £ 12,570.00 |
| Non-resident | £ 12,570.00 |
Scotland Residents Income Tax Tables in 2024
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 19% | Income from £ 0.000.00 | to | £ 2,306.00 |
| 20% | Income from £ 2,306.01 | to | £ 13,991.00 |
| 21% | Income from £ 13,991.01 | to | £ 31,092.00 |
| 42% | Income from £ 31,092.01 | to | £ 62,430.00 |
| 45% | Income from £ 62,430.01 | to | £ 112,570.00 |
| 48% | Income from £ 112,570.01 | | and above |
Scotland Non-residents Income Tax Tables in 2024
Personal Income Tax Rates and Thresholds (Annual)| Tax Rate | Taxable Income Threshold |
|---|
| 19% | Income from £ 0.000.00 | to | £ 2,306.00 |
| 20% | Income from £ 2,306.01 | to | £ 13,991.00 |
| 21% | Income from £ 13,991.01 | to | £ 31,092.00 |
| 42% | Income from £ 31,092.01 | to | £ 62,430.00 |
| 45% | Income from £ 62,430.01 | to | £ 112,570.00 |
| 48% | Income from £ 112,570.01 | | and above |
Scotland Social Security Rates in 2024
Before we review the National Insurance (Social Security) Rates and thresholds for Scotland in 2024 it is important that we first explain the approach to these tables. The UK, including Scotland, has a comparatively complicated approach to applying social security rates when compared to other countries around the world with specific Category Letters determining the criterea with which contributions are calculated. Understanding National Insurance letter categories is essential before reviewing and applying social security contribution rates in Scotland, as these categories determine the specific contribution rates and eligibility criteria for different groups of employees, ensuring accurate and compliant payroll processing.
Importance of National Insurance Category Letter for Payroll in Scotland
The National Insurance (NI) category letter plays a crucial role in payroll management in Scotland. It determines the specific amount of National Insurance contributions required from both employees and employers. This categorization is vital for several reasons:
- Differentiation of Contribution Rates. Different NI category letters correspond to various employee groups, each with distinct contribution rates. These categories consider factors like age, marital status, and other employment conditions.
- Accuracy in Payroll Management. Correctly identifying the NI category letter is essential for accurate payroll processing. Errors in categorization can lead to complications and potential legal issues with HMRC.
- Compliance with Legal Requirements. Using the correct NI category letter ensures compliance with legal requirements, preventing issues such as overpayment or underpayment of National Insurance contributions.
- Impact on Employee Benefits. The NI category affects not just the contribution amounts but also influences the benefits an employee is entitled to, including state benefits.
- Special Provisions for Specific Groups. Certain NI categories are designed for specific employee groups, such as veterans or married women, offering tailored rates and benefits suitable for their circumstances.
In summary, the NI category letter is integral to payroll processing in Scotland, ensuring accurate, lawful contributions and impacting employee entitlements and benefits. Let's now take a look at each of the National Insirance Category letters and their associated meaning/employee group.
Scotland National Insurance Category Letters and Meaning (Associated Employee Group) in 2024| Category Letter | Employee Group |
|---|
| A | All employees apart from those in groups |
| B | Married women and widows entitled to pay reduced NI |
| C | Employees who are over the State Pension age |
| F | All employees who work in freeports, apart from those in groups I, L and S in this table |
| H | Apprentice under 25 |
| I | Married women and widows who work in freeports and are entitled to pay reduced NI |
| J | Employees who can defer National Insurance because they’re already paying it in another job |
| L | Employees who work in freeports and can defer NI because they’re already paying it in another job |
| M | Employees under 21 |
| S | Employees who work in freeports and are over the State Pension Age |
| V | Employees who are working in their first job since leaving the armed forces (veterans) |
| Z | Employees under 21 who can defer National Insurance because they’re already paying it in another job |
| X | Employees who do not have to pay NI, including those who live abroad in certain countries such as in the EU. |
Scotland Social Security in 2024: Rates for Employers and Employees| National Insurance Category A |
|---|
| All employees apart from those in groups |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 13.8% | 13.8% |
| Primary Threshold (PT) | 8% | 13.8% | 21.8% |
| Upper earnings limit | 2% | 13.8% | 15.8% |
| Company Pension | 5% | 3% | 8% |
| National Insurance Category B |
|---|
| Married women and widows entitled to pay reduced NI |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 13.8% | 13.8% |
| Primary Threshold (PT) | 5.85% | 13.8% | 19.65% |
| Upper earnings limit | 2% | 13.8% | 15.8% |
| Company Pension | 5% | 3% | 8% |
| National Insurance Category C |
|---|
| Employees who are over the State Pension age |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 13.8% | 13.8% |
| Primary Threshold (PT) | 0% | 13.8% | 13.8% |
| Upper earnings limit | 0% | 13.8% | 13.8% |
| Company Pension | 5% | 3% | 8% |
| National Insurance Category F |
|---|
| All employees who work in freeports, apart from those in groups I, L and S in this table |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 0% | 0% |
| Primary Threshold (PT) | 8% | 13.8% | 21.8% |
| Upper earnings limit | 2% | 13.8% | 15.8% |
| Company Pension | 5% | 3% | 8% |
| National Insurance Category H |
|---|
| Apprentice under 25 |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 0% | 0% |
| Primary Threshold (PT) | 8% | 0% | 8% |
| Upper earnings limit | 2% | 13.8% | 15.8% |
| Company Pension | 5% | 3% | 8% |
| National Insurance Category I |
|---|
| Married women and widows who work in freeports and are entitled to pay reduced NI |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 0% | 0% |
| Primary Threshold (PT) | 5.85% | 13.8% | 19.65% |
| Upper earnings limit | 2% | 13.8% | 15.8% |
| Company Pension | 5% | 3% | 8% |
| National Insurance Category J |
|---|
| Employees who can defer National Insurance because they’re already paying it in another job |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 13.8% | 13.8% |
| Primary Threshold (PT) | 2% | 13.8% | 15.8% |
| Upper earnings limit | 2% | 13.8% | 15.8% |
| Company Pension | 5% | 3% | 8% |
| National Insurance Category L |
|---|
| Employees who work in freeports and can defer NI because they’re already paying it in another job |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 0% | 0% |
| Primary Threshold (PT) | 2% | 13.8% | 15.8% |
| Upper earnings limit | 2% | 13.8% | 15.8% |
| Company Pension | 5% | 3% | 8% |
| National Insurance Category M |
|---|
| Employees under 21 |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 0% | 0% |
| Primary Threshold (PT) | 8% | 0% | 8% |
| Upper earnings limit | 2% | 13.8% | 15.8% |
| Company Pension | 5% | 3% | 8% |
| National Insurance Category S |
|---|
| Employees who work in freeports and are over the State Pension Age |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 0% | 0% |
| Primary Threshold (PT) | 0% | 13.8% | 13.8% |
| Upper earnings limit | 0% | 13.8% | 13.8% |
| Company Pension | 5% | 3% | 8% |
| National Insurance Category V |
|---|
| Employees who are working in their first job since leaving the armed forces (veterans) |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 0% | 0% |
| Primary Threshold (PT) | 12% | 0% | 12% |
| Upper earnings limit | 2% | 13.8% | 15.8% |
| Company Pension | 5% | 3% | 8% |
| National Insurance Category Z |
|---|
| Employees under 21 who can defer National Insurance because they’re already paying it in another job |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 0% | 0% |
| Primary Threshold (PT) | 2% | 0% | 2% |
| Upper earnings limit | 2% | 13.8% | 15.8% |
| Company Pension | 5% | 3% | 8% |
| National Insurance Category X |
|---|
| Employees who do not have to pay NI, including those who live abroad in certain countries such as in the EU. |
| Contribution Threshold Name | Employee | Employer | Total |
|---|
| National Insurance Lower Earnings Limit (LEL) | 0% | 0% | 0% |
| Secondary Threshold (ST) | 0% | 0% | 0% |
| Primary Threshold (PT) | 0% | 0% | 0% |
| Upper earnings limit | 0% | 0% | 0% |
| Company Pension | 5% | 3% | 8% |
Scotland Social Security in 2024: Thresholds for Employers and Employees| Social security category | Employee | Employer |
|---|
| Min. Earnings | Max. Contribution | Min. Earnings | Max. Contribution |
|---|
| National Insurance Lower Earnings Limit (LEL) | £ 6,396.00 | £ 9,100.00 | £ 6,396.00 | £ 9,100.00 |
| Secondary Threshold (ST) | £ 9,100.00 | £ 12,570.00 | £ 9,100.00 | £ 12,570.00 |
| Primary Threshold (PT) | £ 12,570.00 | £ 50,270.00 | £ 12,570.00 | £ 50,270.00 |
| Upper earnings limit | £ 50,270.00 | n/a | £ 50,270.00 | n/a |
| Company Pension | n/a | n/a | n/a | n/a |
Note: The Company Pension contributions are not mandatory and technically not part of the Social Security package offered by the UK Government. The rates are included here as the push by the UK government to encourage all tax payers to take up the company pension scheme to top up their State Pension when they retire. All UK companies are now required by law to provide a company pension scheme and employees benefit by receiving an additional percentage of their salary into their pension fund (and thereby increasing their salary package). Employees in Scotland can contribute up to £ 60,000.00 per annum tax free in 2024 thereby reducing the individual tax burden.
Scotland VAT Rates in 2024
VAT rates for Scotland are reviewed annually, you can use the VAT Calculator to calculate VAT due in Scotland or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.
Scotland VAT Rates| VAT Rate | VAT Description |
|---|
| 0% | Zero Rated |
| 5% | Reduced Rate |
| 20% | Standard Rate |
Historic Tax Tables supported for Scotland
The following tax tables are supported by iCalculator™ AB as part of the suite of free tax tools we provide for Scotland.