Tax codes, bands and rates for Scotland

 NOTE: For employees who live in other areas of the UK, you need to use different tax bandwidths and rates. Use the article for further support, English and Northern Irish Tax codes, bands and rates.

For further support with Rates and Thresholds for employers 2024 to 2025 go to gov.uk/guidance/

Tax codes

• S prefix - Income taxed using the rates in Scotland
  
• L - Entitled to the standard tax-free personal allowance. For example, S1257L
• SBR - All income calculates at the basic rate in Scotland. No free pay allowance. Your employee may need this tax code for a second job
  BR codes ignore the pence on the gross pay. For example, with earnings of £250.75, the tax calculates on £250. This gives the tax due value of £50, not £50.15
• NT - No tax. Only use these codes if HMRC instructs you to 
• S0T - No free pay allowance. There's no personal allowance to use, or you don't have the details you need to give the employee a tax code. This is zero T, rather than OT
• SD0 - All income taxed at the intermediate rate in Scotland. This is D zero, rather than DO
• SD1 - All income taxed at the higher rate in Scotland
• SD2 - All income taxed at the top rate in Scotland. If an employee pays top rate tax, they don't get a personal allowance
• M suffix - The employee has an increased personal allowance as part of Marriage Allowance. For further guidance, go to gov.uk/marriage-allowance
• N suffix - The employee has a decreased personal allowance as part of Marriage Allowance. For further guidance, go to gov.uk/marriage-allowance
• P suffix - Full personal allowance for those aged 65-74
• T suffix - Used if any items of a tax code are under review by HMRC
• Y suffix - Full personal allowance for those aged 75 and over
• SK prefix - For example, SK100 means the pay adjustment adds to the taxable pay, rather than subtracting from it. This effectively increases the amount of earnings on which your software calculates tax. It applies for directors and employees whose additional benefits outweigh their personal allowance, for example, company cars

Bands and rates

In Scotland, the tax code is the same as in England and Northern Ireland but prefixed with S. For example, S1257L.

 TIP: When you prefix an employee's tax code with S in your software, payroll applies the Scottish tax bands and rates.  

The table below shows the Scottish Income Tax rates an employee pays in each band if they have a standard Personal Allowance of £12,570.

 NOTE: These values will look different to what shows on HMRC's website. The values in the legislation table in payroll don't include the personal allowance. Your software takes this into account automatically during a tax calculation.