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Income Tax – Scotland 2020-21 INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET INCLUDEPICTURE "" \* MERGEFORMATINET In tax systems like ours, if you earn more, it is expected that you pay more income tax (because you can afford it).ScotlandSame as0 to ?12,500*0%First ?12,500 (Personal Allowance)Over ?12,500 - ?14,58519%Next ?2,085 (Starter Rate)Over ?14,585 - ?25,15820%Next ?10,573 (Scottish Basic Rate)Over ?25,158 - ?43,43021%Next ?18,272 (Intermediate Rate)Over ?43,430 - ?150,000**41%Next ?106,570 (Higher Rate)Over ?150,000**46%Anything above ?150k (Top Rate)*assumes individuals are in receipt of the Standard UK Personal Allowance**those earning more than ?100,000 will see their personal allowance reduced by ?1 for every ?2 earned over ?100,000. This means someone on an income of ?125,000 (or more) doesn’t get a personal allowance.In our tax system you are allowed to earn a certain amount before you pay any tax. This is known as your personal allowance*. Any income over this will be taxed (at a particular percentage). N.B. The Tax folk round down the nearest pound in your favour.If the income tax due was ?2110.87 they want ?2110.Example:Alan earned ?20,000 this year. How much income tax will he pay?You can use the EXCEL spreadsheet or the table below.Here’s how you do it using the table below.Look back to the list of tax bands on the previous page.?20,000 is in the 3rd band (3rd line down).Over ?14,585 - ?25,15820%Next ?10,573 (Scottish Basic Rate)Start by putting in the maximum amounts in the 1st and 2nd bands (see below).1st bandPut ?12,500 in Personal Allowance (no tax due)2nd bandPut ?2,085 in the Starter Rate (19%)Now you just need to calculate what goes into the 3rd band (Scottish Basic Rate)It starts at ?14,585 so subtract this from the income.?20,000 - ?14,585 = ?5,415Tax BandPersonal Allowance First?12,50019% bandNext?2,08520% bandNext ?10,57321% bandNext?18,27241% bandNext?106,57046% bandOver?150,000Amount in that band12,5002,0855,415000Tax due0……………………000Work out the tax due, add them together and ROUND DOWN (ignore pence)Use the EXCEL spreadsheet or just fill in the tables below to calculate the income tax due for the following people.Q1. A beauty therapist will earn ?26,345 this tax year (6th April 2020 – 5th April 2021)Tax BandPersonal Allowance First?12,50019% bandNext?2,08520% bandNext ?10,57321% bandNext?18,27241% bandNext?106,57046% bandOver?150,000Amount in that band12,5002,08510,573118700Tax due0………………………………00How much income tax will they pay this year?……………………Q2. An accounting technician will earn ?32,100 this tax year.Tax BandPersonal Allowance First?12,50019% bandNext?2,08520% bandNext ?10,57321% bandNext?18,27241% bandNext?106,57046% bandOver?150,000Amount in that band12,5002,08510,5736,94200Tax due0………………………………00How much income tax will they pay this year?…………………… ................
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