Scottish tax - please tell me it's wrong

[Anothernamefor2025]

Hi posting for traffic

Just had this pointed out to me by a friend who said her tax letter stated that in scotland we will now pay 42% tax on earnings above £31093-£62430.

Checked my tax letter it says the same.

Not heard anything on news - which I would expect as a big drop from previous threshold of £43663-£75000.

Gov.scot says no changes to 42% threshold

www.gov.scot/publications/scottish-income-tax-2025-2026-factsheet/pages/2/

Whilst gov.uk confirms rates written on my tax letter.

www.gov.uk/guidance/rates-and-thresholds-for-employers-2025-to-2026

Is this new threshold correct ?

Is it across the board, or for your friend as a result of receiving taxable benefits?

hoping it’s an error

You add your tax free allowance to that sum.

So - no change in thresholds.

Add your tax free allowance to £31093.....

Are you wondering if you still get the Personal Allowance in Scotland? If so, the answer is yes.

In other words you will normally have a personal allowance of £12k plus (can't remember exact amount but it's in your link). You add the allowance figure onto the tax bands to work out the threshold at which each % tax rate applies. For example, the 41% rate kicks in at Personal Allowance figure plus £31093 ie £43k approx.

There was a thread very like this a couple of days ago. I think the answer was nothing has changed.

This is the same misinformation as a few days ago ( badged as England and wales )

That's what I thought but doesn't read like that. Mines the same as my friends. I'll post a pic.

Sorry, hadn't realised there was another thread like this. So is it just the way it is written ? Tax codes the same as last year ?

So, if I understand it, you pay 42% on earnings above £31k but between 19-21% up to that.... that's been the case for a while hasn't it?

No, it is 42% above £43663

However it reads like it's now going to be 42% above £31093

Don't worry

And don't believe that the mainstream press would not be all over that if it was the case !

The letter shows the tax bands for income in excess of your personal allowance so first £12570 at 0% then the next £2306 at 19% etc
On the fact sheet linked in your opening post it shows the 19% band as £12,571- £15,397 which is £2306

There's no change to tax thresholds this year. You need tp add your personal allowance to.the amounts shown in the letter. Most people have a personal allowance of £12570, though this can change if you have benefits in kind . Please don't worry

I think you've missed the bit above the bulleted list where it states that if your income is more than your tax-free amount, then the following rates apply.

It is oddly written, but I think it's just because they're giving you the general rules as people will have different tax-free amounts.

It's because people have different tax free allowances - second job, company car, private health care etc etc all affect it.

So the letter is saying your tax code is your tax free allowance, add a 0 to the end to work out what it is.

If you earn more than that, then the earnings over the tax free allowance are taxed as follows:

@Anothernamefor2025 your letter states "shows you are entitled to the standard tax free allowance" This is circa £12K. The tax rates start after you have earned the £12K+

Benefits in kind do not affect your tax free allowance.

Your PAYE code is used to allocate your personal allowance against different sources of income.

If you have medical insurance of say £2570 then £2570 of your allowance will be allocated against this and the remaining £10K allocated to salary given a tax code of 1000L . You still have a tax free allowance of £12570

They have referred to 'tax free amount' in the screenshot /letter shown above. This is normally the Personal Allowance of £12k (again, sorry, can't remember exact amount but it is in the link in the OP).

Sometimes you may have a lower Personal Allowance eg if paying off an unpaid tax bill.from a previous year). Your payslip tax code will show the figure for you. If your tax free amount for a particular tax year is different from the standard Personal Allowance you should have been notified by HMRC.

Thank you ! Panic over ! 🤣