All the talk following the budget on 15th March has been around the changes to the pension tax system.
There were no changes to the income tax rates or bands affecting those in England, Northern Ireland or Wales, but it should not be forgotten that Scottish Income tax rates will rise in the new tax year.
The changes affect the higher and top rates of tax, with each increasing by 1%.
The new tax bands/rates will look like this:
Proposed Income Tax Rates and Bands
|Starter||£12,571* – £14,732||19%||£12,571* – £14,732||19%|
|Basic||£14,733 – £25,688||20%||£14,733 – £25,688||20%|
|Intermediate||£25,689 – £43,662||21%||25,689 – £43,662||21%|
|Higher||£43,663 – £150,000**||41%||£43,663 – £125,140**||42%|
|Top||Above £150,000||46%||Above £125,140||47%|
**Those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000. source: Scottish Income Tax 2023-24: factsheet – gov.scot (www.gov.scot)
Of course the enduring MoD Scottish Income Tax mitigation will protect all serving Armed Forces (AF) personnel from these higher rates of income tax thereby ensuring that all UK AF personnel pay the same rates of income tax wherever they are located.