The Salary Calculator

April 2017 tax rates and Scottish income tax

by Admin

The Salary Calculator has been updated with the new Income Tax and National Insurance rates which will apply from 6th April 2017. The tax-free personal allowance has been raised by £500 to £11,500, allowing you to take home more of your hard-earned cash without having to pay income tax. Income tax rates have stayed the same, but there is a change to the thresholds between the basic rate (20%) and higher rate (40%) tax bands.

For the first time, from April 2017, income tax will be different if you are resident in Scotland than if you live in the rest of the UK. The Scottish rates of income tax will be set by the Scottish Government rather than by the UK Government in Westminster. For UK income tax, the threshold to 40% tax has gone up to £45,000 (assuming you have the full personal allowance) – but in Scotland, the threshold stays where it was last year at £43,000. Since the increased personal allowance applies both sides of the border, almost everyone will be better off from April 2017 than they were this year – but those earning over £43,000 in Scotland could be as much as £400 worse off over the year compared to if they lived in the rest of the UK. More information about the introduction of the Scottish income tax is available from the Scottish Government.

Head over to The Salary Calculator and choose the 2017/18 tax year to see the difference to you – or try the side-by-side comparison of 2016 and 2017 take home.

Tags: April 2017, HMRC, income tax, national insurance, Pay As You Earn, personal allowance, Scotland, Scottish Income Tax, tax rates, The Salary Calculator