Scottish tax increases will be offset by UK-wide cuts to National Insurance, experts have said ahead of the new tax year. The divergence means Scots earning up to £112,900 will pay less combined compared to the previous year.
Scottish tax increases will be offset by UK-wide cuts to National Insurance , experts have said ahead of the new tax year . The divergence means Scots earning up to £112,900 will pay less combined compared to the previous year.The starter, basic and intermediate thresholds will also increase with inflation, meaning the level at which Scottish taxpayers begin to pay more income tax than those in the rest of the UK increases from £27,850 to £28,867.
However, Chancellor Jeremy Hunt’s decision to cut National Insurance instead of income tax in his latest Budget affects taxpayers across the UK.Sean Cockburn, chairman of the CIOT’s Scottish technical committee, said it means part of the tax divergence will be “somewhat” offset. CIOT data shows Scots earning under £125,140 will pay at least £580 less in tax in 2024-25 compared to the previous year due to the combination of income tax and National Insurance change
Scottish Tax UK-Wide Cuts National Insurance Tax Year Income Tax Inflation Chancellor Jeremy Hunt CIOT Tax Divergence
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