The Scottish Government has set out its spending and taxation plans for 2018 in its annual budget. Please see some of the proposed changes to income tax below;
| Scottish Bands | Band name | Scottish Rates (%) |
| Over £11,850* – £13,850 | Starter | 19 |
| Over £13,850 – £24,000 | Basic | 20 |
| Over £24,000 – £44,273 | Intermediate | 21 |
| Over £44,273 – £150,000** | Higher | 41 |
| Above £150,000** | Top | 46 |
*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.
Jonathan Watts-Lay, Director, WEALTH at work, a leading provider of financial education, guidance and advice in the workplace, comments;
“If this is approved by the Scottish Parliament there clearly will be a new level of complexity within the tax system, which employees in Scotland will need to understand, especially when it comes to funding their pension and how tax relief will now be applied. Financial education in the workplace will be key to helping employees understand the implications to these proposed changes.”