The Scottish Government is urging people to check that the tax code on their first payslip after April 6 is correct, as we are now in the new 2023/24 financial year. Changes to income tax have now come into force that are estimated to raise more than half a billion pounds of additional revenue to support vital public services across the country.
The tax rates for earnings between £12,571 and £43,662 remain the same while earnings above £43,663 are now taxed at the Higher tax rate of 42 per cent. The threshold at which people pay the Top Rate of tax has reduced from £150,000 to £125,140 with earnings over that threshold now taxed at 47 per cent.
The Scottish Fiscal Commission predicts these changes will raise £129 million in 2023-24. The Higher Rate threshold will also remain at its 2022-23 level, applying to earnings over £43,662, which will increase revenue by a further £390million when compared to uprating the threshold by inflation, according to Scottish Government estimates.
