Taxes: Income Tax 2014/2015

If you live and work in Scotland you will pay tax on your income as in the rest of the UK. 

Taxable income

Income means here:

• earnings from employment and self-employment

• state/company/personal pensions income

• rental income

• interests on most savings

 Did you know?

Income Tax is only due on taxable income that's above your tax-free allowance (Personal Allowance). 

The tax-free allowance is an amount of taxable income you're allowed to earn or receive each year tax-free. The tax-free allowance for 2014-15 is £10,000 (for people born after 5 April 1948).

Income Tax Band

The tax band applies to your income after your tax allowances (and any reliefs) have been taken into account. You're not taxed on all of your income.

Income Tax rates 2014-15

* The 10% starting rate applies to savings income only.

How do I pay Income Tax?

1. You are an employee. This is easy and you don’t have to do anything. Your employer will deduct Income Tax directly from your wages throughout the year using PAYE (Pay As You Earn).

2. You are self-employed. You’ll need to register for Self-Assessment as soon as you start your activity and complete a Self-Assessment tax return. You can complete and fill in a paper form or file your return online. With the latter, your tax is worked out automatically as you fill in the form so you'll know what you owe right away.