And the Higher Rate Tax Threshold for Scotland Is…

Red envelopeAs the Academy Awards demonstrated this week, things don’t always go to plan. On 15th December, Scotland’s finance secretary Derek Mackay delivered the draft budget for 2017/18, in which he proposed a higher rate tax threshold of £43,430. In Scotland, as in the rest of the UK, government budget declarations don’t carry the weight of an executive order but must be agreed by a vote of the relevant parliament, where the best-laid plans of mice and ministers go oft awry.

In the case of Scottish tax bands, a resolution must be passed by Members of the Scottish Parliament. After announcing the threshold in December, the Scottish Government had difficulty getting support from a majority of MSPs, so in February it proposed a new threshold of £43,000. This was agreed by a vote of the Scottish Parliament on the 21st February.

The £43,000 figure includes the £11,500 personal allowance so the bandwidth used for payroll purposes is £31,500. The Payroll Site will be updated with the new threshold in the next few days and it applies to Scottish rate tax payers from 6th April. If you use a different payroll system and want to check it is configured correctly, you can find the updated rates and thresholds on

Steven Tucker

By Steven Tucker - Co-founder

Steven is one of the founders of The Payroll Site. He writes about things affecting small businesses, especially those things connected with payroll. He's also a Maths graduate and a Chartered IT Professional and has a few views about technology, maths and the misuse of both.