Achi news desk-
One of the big changes in Scotland is a new higher income tax band, which will apply a rate of 45% on annual income between £75,000 and £125,140.
An extra 1 pence will be added to the top rate of tax which means that income over £125,140 will be taxed at 48%.
The initial and basic rate bands will increase in line with inflation and the Higher rate threshold will be maintained at £43,662.
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That means any Scottish taxpayers earning less than £28,867 will pay less tax than taxpayers in the rest of the UK.
But the difference for those who earn more will be greater.
Those earning between £75,000 and £125,140 will pay up to £5,232 more than anywhere else in the UK.
Around 49% of Scottish taxpayers will pay more tax than workers south of the border.
However, according to the CIOT’s analysis, the UK Government’s decision to reduce the main Class 1 National Insurance rate paid by employees to 8% means that Scots with earnings of up to £112,900 will pay less overall compared with their obligations in 2023/24. .
Sean Cockburn, Chair of the CIOT’s Scottish Technical Committee, said: “Although the Scottish Government’s tax choices will mean that higher-paid Scots will pay more income tax from this month, these have offset somewhat by the UK-wide National Insurance changes.
“It means that while Scots with earnings over £75,000 will pay more in income tax, those with earnings below £112,900 will end up paying less in tax and national insurance overall compared to the last few years.
“It shows what can happen when Scottish and UK tax preferences interact.”
Ms Robison said it was right that those who earn more pay more. He said Scotland has the “most progressive income tax system in the UK” and pointed to analysis by the independent Scottish Fiscal Commission which estimates that general income tax will rise by £18.8 billion in 2024-25.
The Deputy First Minister added: “Only 5% of Scottish taxpayers will pay a higher rate of tax this year compared to last year and the majority of taxpayers are still paying less than they would elsewhere in the UK.
“The money raised through income tax enables people in Scotland to benefit from a wide range of social security services and payments not provided elsewhere in the UK, including prescriptions for nothing and free higher education.
“Council tax is less in Scotland than in England, even before considering the council tax freeze for 2024-25.
“I encourage everyone to check their first pay slip in April to make sure their address is correct and their tax code starts with ‘S’. This will ensure that people pay the right amount of tax on their income.”
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Meanwhile, Scottish Labor leader Anas Sarwar said Scottish taxpayers “are being made to foot the bill for the mismanagement of the SNP and the Tories”.
Speaking ahead of a campaign event on Friday, he said: “Humza Yousaf is out of touch with reality if he thinks 1.5 million Scots should pay more tax and oil and gas giants should pay less.
“Scotland is being failed by the SNP Government who are trying to use income tax as a sticking plaster to pay for their pathetic failure to grow our economy or manage public finances.
“Just like the Tories, the SNP are not on the side of working people.”
But the Conservatives’ finance spokeswoman in Scotland, Liz Smith, said: “Labour voted for the income tax rises we have now and hailed them as ‘progressive’.
“No one is going to be taken in by this late conversion. The Scottish Conservatives are the only party that has consistently opposed these punitive national taxes and is committed to their abolition.”
