What is Scottish income tax?

Updated on 15 March 2017

This section tells you about the Scottish rate of income tax (SRIT). Scottish taxpayers pay the SRIT from 6 April 2016 onwards.

Scottish Rate of Income Tax

The SRIT is not a separate tax, nor is it a devolved tax as such.

It is a power that the Scottish Parliament has to affect the amount of income tax that Scottish taxpayers pay. To do this, the Scottish Parliament can set a single Scottish rate (of income tax), which determines the overall rates of income tax payable by Scottish taxpayers on certain types of income.

HMRC administer and collect the SRIT, using the Pay As You Earn (PAYE) and self assessment systems. This means that if you disagree with a decision concerning the SRIT, you must follow the HMRC appeal process. In addition, if you are unhappy with the service provided, you must follow HMRC’s complaints process.

The SRIT applies from 6 April 2016. For 2016/17, the rate of the SRIT is 10%.

Broadly, the SRIT is payable by “Scottish taxpayers”, on their non-savings and non-dividend income. This section explores these points in more detail: