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Income Tax Rates and Bands
Recent income tax rates and bands are as follows:
| 2021/22 | 2022/23 | 2023/24 | 2024/25 | 2025/26 | |
| Savings rate: 0% | Up to £5,000 | Up to £5,000 | Up to £5,000 | Up to £5,000 | Up to £5,000 |
| Dividend Allowance: 0% | Up to £2,000 | Up to £2,000 | Up to £1,000 | Up to £500 | Up to £500 |
| Basic rate: 20% | £12,571 to £50,270 | £12,571 to £50,270 | £12,571 to £50,270 | £12,571 to £50,270 | £12,571 to £50,270 |
| Higher rate: 40% | £50,271 to - £150,000 | £50,271 to - £150,000 | £50,271 to - £125,140 | £50,271 to - £125,140 | £50,271 to - £125,140 |
| Additional rate: 45% | Over £150,000 | Over £150,000 | Over £125,140 | Over £125,140 | Over £125,140 |
When the personal allowance (£12,570) is taken into account an individual will start to pay tax at 40% when their total income exceeds £50,270. This threshold (and the 45% threshold) can be increased if the taxpayer pays personal pension contributions or makes gift aid donations.
Scottish Income Tax Rates and Bands
Scottish income tax applies to non-savings and non-dividend income. Reforms to the Scottish tax system led to a new Advanced band of income tax coming into force from 6 April 2024, meaning the country moves further away from the set up in the rest of the UK.
The new rates and thresholds from April 2025 look like this.
| Tax rate | Income thresholds | |
| Personal allowance | 0% | Up to £12,570 |
| Starter Rate | 19% | £12,571 to £15,397 |
| Basic Rate | 20% | £15,398 to £27,491 |
| Intermediate Rate | 21% | £27,492 to £43,662 |
| Higher Rate | 42% | £43,663 to £75,000 |
| Advanced Rate | 45% | £75,001 to £125,140 |
| Top Rate | 48% | Over £125,140 |
This is how the rates and thresholds looked prior to the changes:
| 2020/21 | 2021/22 | 2022/23 | 2023/24 | 2024/25 | |
| Starter rate: 19% | Up to £2,085 | Up to £2,097 | Up to £2,162 | Up to £2,162 | Up to £2,306 |
| Basic rate: 20% | £2,086 to £12,658 | £2,098 to £12,726 | £2,163 to £13,118 | £2,163 to £13,118 | £2,307 to £13,991 |
| Intermediate rate: 21% | £12,659 to £30,930 | £12,727 to £31,092 | £13,119 to £31,092 | £13,119 to £31,092 | £13,992 to £31,092 |
| Higher rate: 42% | £30,931 to £150,000 | £31,093 to £150,000 | £31,093 to £150,000 | £31,093 to £125,140 | £31,093 to £75,000 |
| Advanced rate: 45% | £75,001 to £125,140 | ||||
| Additional rate: 46% (47% from April 2023 & 48% from April 2024) | Over £150,000 | Over £150,000 | Over £150,000 | Over £125,140 | Over £125,140 |
What our clients say about us...
"Paul has provided accountancy services to my company for 2 years now. I can recommend Paul very highly; his skills as an accountant are highly detailed and professional and he is always available to provide advice. One aspect of the way Paul works that I greatly appreciate is a preference to meet face to face when there is a detailed conversation to be had. I personally find this more productive and is a benefit of working with a small accountancy firm that you wouldn't get with the large faceless providers."
ALISTAIR FAIRWEATHER - PROGRAMME & PROJECT MANAGER, DELIVERING/RESCUING I.T. 7 BUSINESS CHANGE WITH BUDGETS UPTO £50M INC SUPPIER MANAGEMENT
"I couldn't ask for more from Paul as an Accountant. Paul has been accountant to Work Relief Charity Recruitment for just over a year now and is proving an invaluable asset. Accurate, knowledgeable, flexible with an emphasis on service delivery, I would recommend Paul's services to any organisation looking for an accounts professional."
Neil Price - Managing Director at Work Relief Charity Recruitment
"Paul was a referral from a family member when I started my business 2 years ago. As this was the first time I had ever run my own company I was totally clueless over the financial side of matters and was worried that I may have made mistakes in any of my accounting. I needn't have worried as after enaging Paul for a set monthly fee he was always there on the end of the phone for all sorts of questions I had and no matter how trivial they were Paul gave me all the information I required and more and did an excellent and painless job at the end of my first year! Couldn't ask for any better to be honest. Just two words - hire him!!!"
Lee Westrap MBCS - Director - Bulldog IT Services
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