4 min read
Understanding how income tax is calculated across the different nations of the UK is crucial, as rates and bands can vary, particularly for Scotland. This guide provides a comparison for England & Northern Ireland, Scotland, and Wales.
The UK Personal Allowance
A key feature of the UK income tax system is the Personal Allowance. This is the amount of income you can earn each tax year before you start paying Income Tax. For the 2024/2025 tax year, the standard Personal Allowance is **£12,570**.
However, your Personal Allowance may be smaller if your income is over £100,000. It is reduced by £1 for every £2 that your adjusted net income is above £100,000. This means your allowance is zero if your income is £125,140 or above.
The Personal Allowance is UK-wide and applies consistently regardless of whether you are an English, Welsh, Scottish, or Northern Irish taxpayer.
England & Northern Ireland Income Tax Bands (2024/2025)
For taxpayers in England and Northern Ireland, the income tax rates and bands (after the Personal Allowance) are:
- Basic Rate (20%): On income from £12,571 to £50,270
- Higher Rate (40%): On income from £50,271 to £125,140
- Additional Rate (45%): On income over £125,140
(Note: The limits above are based on the assumption that the individual is receiving the standard Personal Allowance of £12,570. The actual taxable income bands are £0-£37,700 for Basic, £37,701-£112,570 for Higher, and over £112,570 for Additional Rate when considering income *after* the Personal Allowance has been applied).
Scottish Income Tax Bands (2024/2025)
Scotland has its own set of income tax rates and bands, which are different from the rest of the UK:
- Starter Rate (19%): On income from £12,571 to £14,876
- Basic Rate (20%): On income from £14,877 to £26,561
- Intermediate Rate (21%): On income from £26,562 to £43,662
- Higher Rate (42%): On income from £43,663 to £75,000
- Advanced Rate (45%): On income from £75,001 to £125,140
- Top Rate (48%): On income over £125,140
Scottish taxpayers still receive the same UK Personal Allowance. The bands shown above are the total income levels where these rates apply, assuming the standard Personal Allowance.
Welsh Income Tax Bands (2024/2025)
The Welsh Government has the power to set Welsh Rates of Income Tax (WRIT). For the 2024/2025 tax year, the Welsh rates have been set in line with England and Northern Ireland.
Therefore, Welsh taxpayers use the same income tax bands and rates as England and Northern Ireland:
- Basic Rate (20%): On income from £12,571 to £50,270
- Higher Rate (40%): On income from £50,271 to £125,140
- Additional Rate (45%): On income over £125,140
Key Differences Summarized
- Number of Bands: Scotland has more tax bands (six, including the Personal Allowance as a 0% band implicitly) compared to England/NI/Wales (four, including PA).
- Rates: Scotland has different tax rates for several of its bands. Notably, it has a "Starter Rate" lower than the UK Basic Rate, an "Intermediate Rate", and different thresholds and rates for its "Higher" and "Top" bands. The "Advanced Rate" at 45% applies at a lower income threshold in Scotland compared to the UK Additional Rate.
- Thresholds: The income levels at which different tax rates apply vary significantly, especially for Scottish taxpayers.
These differences mean that for the same level of income, a Scottish taxpayer might pay a different amount of income tax compared to someone in England, Wales, or Northern Ireland.
It's important to use a calculator that considers your specific region to get an accurate estimate of your take-home pay. You can plan your taxes more effectively with this knowledge.