After-tax pay by part of the UK
Income tax on earned income is not identical across the UK. England, Wales and Northern Ireland share one set of bands; Scotland sets its own. National Insurance, the personal allowance and student loan thresholds stay the same everywhere, so the split is narrower than it first looks — but on the same salary the difference is real money.
| Part of the UK | Income tax bands | Net pay on £45,000 (with 5% pension) | Why it differs |
|---|---|---|---|
| England, Wales and Northern Ireland | 3 bands | £34,369 | Higher rate starts at £50,271, additional rate 45% above £125,140 |
| Scotland | 6 bands | £34,274 | Higher rate starts at £43,663, top rate 48% above £125,140 |
Where the rates actually diverge
Up to £12,570 nobody pays income tax in either system. Above that the paths separate: Scotland adds a 19% starter band and a 21% intermediate band, then jumps to 42% while the rest of the UK is still at 40%. A Scottish taxpayer earning £50,000 pays about £1,015 more income tax than the same salary south of the border — with identical National Insurance.
Higher up the scale the gap narrows again and then reverses: above £125,140 Scotland charges 48% against 45%, so the further you go the more the Scottish system costs.
England against Scotland, eight salaries
The direction changes as the salary rises. Scotland's 19% starter band and 21% intermediate band are both below the 20% the rest of the UK charges on the same slice, so at the bottom of the scale Scotland takes slightly less. Around £35,000 the two converge; above it the 42% rate — which starts at £43,663 there instead of £50,271 — makes Scotland the expensive one, and the 48% top rate against 45% keeps widening the gap higher up. All eight rows use the same 5% pension, so the comparison is apples to apples.
| Gross salary | England, Wales & NI | Scotland | Scotland against England |
|---|---|---|---|
| £25,000 | £20,769 | £20,809 | +£40 in Scotland |
| £30,000 | £24,169 | £24,209 | +£40 in Scotland |
| £35,000 | £27,569 | £27,569 | level to the pound |
| £40,000 | £30,969 | £30,921 | −£48 in Scotland |
| £45,000 | £34,369 | £34,274 | −£96 in Scotland |
| £50,000 | £37,769 | £36,755 | −£1,015 in Scotland |
| £60,000 | £44,037 | £42,330 | −£1,706 in Scotland |
| £70,000 | £49,837 | £47,930 | −£1,906 in Scotland |