Sorry. You need to upgrade your browser

You are using Internet Explorer 8

This is considered an out of date browser. This website has been developed with modern browsers in mind to allow it to display at its best in a wide variety of viewing situations - including mobile viewing. But we haven't supported older browsers like IE8. Please upgrade to the latest version of Internet Explorer - or try Mozilla Firefox or Google Chrome. Both are excellent browsers.

Thank you.

Chartered Certified Accountants
and Business Advisors

01530 267320

Scotland’s Finance Secretary has made radical changes to income tax rates for 2018/19

The table below shows the Sottish income tax rates and allowances for 2018/19:

Personal tax-free allowance


Start rate 19%

£11,851 to £13,850

Basic rate 20%

£13,851 to £24,000

Intermediate rate 21%

£24,001 to £44,274

Higher rate 41%

£44,275 to £150,000

Additional rate 46%

£150,001 and above


The new tax rates make it important that employers, wherever they are in the UK, apply the special tax codes for Scottish workers. Scottish tax codes can be identified by starting with an ‘S’.

Employees can gain or lose their Scottish taxpayer status at any time where they permanently move to another part of the UK. When this happens part way through a tax year the change of tax residency applies for the whole year.

Where HMRC becomes aware of a change in status they will issue or withdraw an ‘S’ code. Any refund resulting from a change of code will be made through the PAYE scheme.

As an employer, your payroll software will work out the tax for ‘S’ codes, but it is important you keep it up to date with changes to employees’ addresses so HMRC can assess if an ‘S’ code is required.

30 Jan 2018

« Back to latest news

Latest news

What you need to know when your Company is Dormant...

A dormant company is not accountable for corporation tax purposes. There is no need to let Companies House know that you...

Click to read more >

Sence Alphabet

Do you know your Sence Alphabet? Annual Accounts Bookkeeping Compliant Digital ...

Click to read more >

VAT on hotel deposits

When you book a stay at a hotel for business use you usually have to put a deposit down at the time of booking, however,...

Click to read more >

Is it a Car or is it a Van?

The argument about whether a vehicle is a company car or van is back. It’s the differential in tax payable on company ...

Click to read more >

Teachers to have loans reimbursed

The government have now published details of how teachers in shortage subjects in certain parts of the country will be a...

Click to read more >

Tax and Paid Carers

When you foster children your local council will give you payments. HMRC treats paid foster and other carers as running ...

Click to read more >

Can a director be paid before trade begins?

New Companies often incur start-up costs before they begin trading. But… is it sensible from a tax and NI point of vie...

Click to read more >

Vat when incorporating your business

The motive for incorporating a business, that is working through a company instead of being self-employed or in partners...

Click to read more >

How can we help?




Sence are approachable and happy to take my call, they listen to me, and my concerns no matter how small.

Jacqui Williams
Tip Top Hair Design

Click to read the full testimonial >