Scottish tax advice and assistance

Scottish tax is changing

With our help, you can meet your payroll requirements and plan to mitigate your tax liabilities.

The changes are significant and can mean some major differences in computing income, but we have the knowledge and the skills to help you through these changes.

There are now 4 rates of Scottish tax compared to just 2 in the rest of the UK.

Personal Allowances are the same, and National Insurance is not affected.

Tax adjustments for pension contributions, charitable donations and Marriage Allowance will be affected by this change.


What are the major differences ?

Earned income – wages and salaries – are subject to Scottish tax if the employee is resident in Scotland. 

Unearned income – dividends and interest – are still taxed at the UK tax rates.


About the different Scottish tax rates

The new Scottish Tax system will replace the 20% tax bands with rates of 19%, 20% and 21% and the higher rate of tax in Scotland will be 41% rather than 40%.

Basic rate tax reliefs will apply at the 19%, 20% and 21% band.


See sample computations


New collection agency

All the powers are now with Revenue Scotland, the new Scottish authority for tax assessment and collection.

The current rules still apply, unchanged, except for the tax bands and rates.

The actual assessment and collection processes are subcontracted it to HMRC, so taxpayers won’t see any significant differences in the administration.

Demands will be issued in the same way, payments made to the same bank accounts and debt collection will be unchanged (probably).

Visit Revenue Scotland

Lose the worry

We are Nicolson Accountancy, an award winning firm of accountants.  We can help you comply with all the Scottish and UK tax regulations.

We are a BACS payroll bureau and authorised by HMRC (and that means by Revenue Scotland too) to act for all payroll taxes, income tax, corporation tax and VAT.

Our team are based across our three offices providing high quality advice and support to over 2,000 clients across the UK; and beyond.

We can also help with international tax issues, and also specialise in Norwegian Tax.

Contact us for advice

How to reach us!

We are headquartered in Glasgow, and we would be delighted to see you in any of our offices.


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