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Scotsnet

Welcome to Scotsnet - discuss all aspects of life in Scotland, including relocating, schools and local areas.

New income tax rates- more squeeze on the middle

106 replies

Pammela · 06/04/2023 22:17

Thoughts on the new tax rates?! I’m shocked at how little press it is getting and how we just accept being taxed so much more than elsewhere in the UK! We’re in a cost of living crisis and the SNP seems to think that middle earners should contribute almost half of their pay, without the national insurance relief given down south.

Most NHS workers and teachers will now be paying 42% tax bracket.

https://www.gov.scot/news/new-financial-year-heralds-income-tax-changes/

New financial year heralds income tax changes

Additional half a billion pounds raised for public services.

https://www.gov.scot/news/new-financial-year-heralds-income-tax-changes/

OP posts:
GlorifiedChair · 06/04/2023 22:33

I'm an NHS worker and nowhere near the higher rate.

The only change to that band is 42% instead of 41% as far as I can see? Higher band starts at the same £46,663 salary as it did in 2022/23.

www.gov.scot/publications/scottish-income-tax-factsheet-2023-24/

GlorifiedChair · 06/04/2023 22:34

*£43,663 not £46,663.

Janedoe82 · 06/04/2023 22:36

It’s not 46 it is 43

Janedoe82 · 06/04/2023 22:37

It’s still at least 1k more per year than rest of the uk

Canyousewcushions · 06/04/2023 22:48

I'm with you OP, the lower tax threshold and the higher rate is targeted at people who's salaries aren't really high enough to be penalised with that much additional tax.

Doesn't help that the UK wide national insurance thresholds tie up with the tax bands for the rest of the UK- so up here the total tax plus NI between £43k to £50k is about 54%, which then drops off to around 44% over £50k.

It doesn't really make any sense (but it does annoy me no end!!)

Pantsonfiretoday · 06/04/2023 22:53

@GlorifiedChair Oh well if some Scots are £1500 a year worse off than their ruk counterparts who cares.🙄 Funny though I remember when WM wanted the extra £34 a month on NI for Social Care loads of Scots shouted about it and not in a good way

GlorifiedChair · 06/04/2023 23:16

Pantsonfiretoday · 06/04/2023 22:53

@GlorifiedChair Oh well if some Scots are £1500 a year worse off than their ruk counterparts who cares.🙄 Funny though I remember when WM wanted the extra £34 a month on NI for Social Care loads of Scots shouted about it and not in a good way

I made no comment on the tax band or threshold. I commented that the higher rate change is +1% on earnings over £43K compared to last year which is probably why isn't getting much press attention.

emmathedilemma · 06/04/2023 23:17

Janedoe82 · 06/04/2023 22:37

It’s still at least 1k more per year than rest of the uk

This!!
i’m also never sure if my tax code is right because ours seem to go through at England rates and then one minute I get a letter saying I owe them money and within a week I get another with a rebate 🤷🏻‍♀️

Janedoe82 · 06/04/2023 23:27

I only know this as I have have lived in both Scotland and other parts of uk. I was previously left on Scottish tax code by mistake, but got a big rebate when the mistake was sorted. Scotlands Council Tax is also higher.

EddieVeddersfoxymop · 06/04/2023 23:42

I generally don't mind higher rate payers paying more - it affects me personally. What I DO mind is the growing disparity with England - we'd be much better off under their tax regime. Given that council tax for my pretty modest home has hit a ridiculous high, electricity and oil for heating is high, every other bill going up and up.......this feels like the last straw this evening. Its so depressing just working to pay bills and taxes.

ditalini · 06/04/2023 23:59

I think the NI drop off for higher rate taxpayers in England is absolutely barking quite frankly. Massively regressive.

I don't feel overburdened by the extra tax I pay in Scotland.

Motheranddaughter · 07/04/2023 06:09

My DH and I will pay £1500 more each than if we lived in England
Wouldn’t mind if our hospitals and schools were any better

Sugarfree23 · 07/04/2023 06:39

This must have an effect on the ability to get people to work overtime. When so much is going into government funds.

Have they ever thought about it?

MarieG10 · 07/04/2023 06:59

I was all for independence as the reality of preparing the first budget in advance for a new independent Scotland without any subsidy from England would result in an immediate crises. Scotland has the highest long term public spending deficit of any European country at 12%....4 times that of Greece previously. The EU demand no higher than 2%

So the latest tax rise won't be reducing this, it is increasing spending yet again with the worst education system in Europe?

Dreadful. Glad I don't live there

VineSt · 07/04/2023 07:09

There’s other areas of disparity with England, free personal care, free prescriptions, free dentistry to 26, free university education to name a few.

Just a product of devolution isn’t it.

MarieG10 · 07/04/2023 07:21

VineSt · 07/04/2023 07:09

There’s other areas of disparity with England, free personal care, free prescriptions, free dentistry to 26, free university education to name a few.

Just a product of devolution isn’t it.

Yes should be with that budget deficit....might be different if Scot's had to pay for it all!!!

VineSt · 07/04/2023 07:49

Completely agree @MarieG10 . Devolution has its perks and otherwise.

Free Hospital car parking too - I paid £10 yesterday to park for a hospital appointment in Northern England.

Public spending by country and region. £6k per head more than where I am in Scotland.

Workerbeep · 07/04/2023 09:58

Hospital parking is now free at my local hospital and it’s a complete nightmare. Before there was parking spaces now there is not. Lots of healthcare professionals always complaining about it so not just visitors or day patients.

Just like free university education, prescriptions, dental care etc. it really is not the holy grail the SNP and their acolytes make out.

rattymol · 07/04/2023 10:07

£43k is a good wage.

Sugarfree23 · 07/04/2023 11:00

rattymol · 07/04/2023 10:07

£43k is a good wage.

I'm not saying it's not a good wage it's what the average tradesman will be earning.

Where is the incentive for nurses or tradesmen to do overtime if they'll be hammered for tax?

rattymol · 07/04/2023 11:37

It is not the average salary for a tradesperson. I have lots of friends in the trades.
First we are to,d nurses are poorly paid and need to use food banks, and then suddenly they are all higher rate taxpayers.
If you earn this you are on above average earnings. Loads of people on average earnings achieve that through overtime.

Pammela · 07/04/2023 13:22

Not all nhs workers will be in the 43% tax bracket, but a lot are- physios/nurses/optometrist. All full time, expletives teachers too. And the brackets for these haven’t changed in years.

Theres always someone claiming we have better public services but I don’t think we do- I work in education and it’s on its knees; have a friend who works in CAHMS for NHS, also on its knees; a friend who works as a pharmacist for drug dependents- the system is on its knees; and, of course, a consultant in a&e who tells of the horror stories there.
Universities don’t even offer Scottish students many places anymore.

Where is the demand for growth? The incentive to earn more, and so, oh more tax. There’s barely an incentive to do SQA marking or overtime’s anymore as it’ll be taxed at 54%- as per pp.

If you look at the breakdown of % of Scot’s who are in the upmost tax bracket- it’s pitiful. We have too few earning alot to tax. It’s unsustainable. You can’t just keep taxing middle earners because you provide no incentive for business/higher earners.

This sums it up well: “ at present the top 16 per cent of tax-payers account for 60 per cent of revenues, according to the Fraser Of Allender Institute. Scotland’s problem isn’t that high earners aren’t being taxed but that there aren’t enough high earners to generate funds for the SNP’s social programmes.”

I do find it sad that Scotland views ‘progressiveness’ as taking from x to fund y. Rather than trying to generate and concentrate on growing.

OP posts:
rattymol · 07/04/2023 13:24

If nurses really are in the 43k tax band why so many stories about them using food banks?

Pammela · 07/04/2023 13:24

It also makes the new NHS and teacher pay deals seem a bit meh. After fighting for almost an extra %, it’s already been taken from you.

People can’t keep saying ‘I’m happy to pay more for those at the bottom” but soon there won’t be enough people to keep paying that.

39% of adults in Scotland don’t pay any income tax at all. That, is a crazy number.

OP posts:
Sugarfree23 · 07/04/2023 13:57

People can’t keep saying ‘I’m happy to pay more for those at the bottom” but soon there won’t be enough people to keep paying that.

Many are happy to pay more for better public services, health and schools but many are also pissed of at seeing money getting squandered on Indyref2, baby boxes and other free stuff like free bikes and computers.

What are they doing to get people earning their own money rather that child top ups etc.
There does come a point where people will decide sod it I'm going to live in Carlisle, wfh most of the week and only be in Glasgow once a week.
Or I'll ditch the UK and its rubbish weather and go to Canada or Australia