On Thursday 9th December, Finance and Economy Secretary, Kate Forbes, delivered the Scottish Budget for tax year 2022-23. The Budget covers changes to tax bands and an hourly rate increase for social care and public sector workers.

Tax Rates and Bands

For tax year 2022-23, Scottish income tax rates will remain unchanged, however the Budget confirmed that the ‘starter’ and ‘basic’ rate bands will increase in line with Consumer Price Index (CPI) inflation (3.1%). The ‘higher’ and ‘top’ rate bands will remain frozen at 41% and 46%.

Public Sector and Social Care Hourly Rate Increase

It was announced that the minimum wage for social care staff and people covered by the Public Sector Pay Policy will rise to £10.50 an hour. The Public Sector Pay Policy for 2022 will focus on those on low incomes, ensuring an inflationary uplift of at least £775 for those earning up to £25,000, £700 for those earning between £25,000 and £40,000 and £500 for those earning above £40,000.

More highlights from the Scottish Budget can be found here.

Interested in doing business in the United Kingdom? Find out everything you need to know about payroll, tax, social security, employee benefits, work permits, employment law and more in activpayroll’s Guide to Doing Business in the UK. This is available as a free PDF to download.

By scaling, streamlining, or ensuring your people are taken care of, we bring absolute clarity to your global business.

Latest news & insights

 
March 4, 2024 | 4 minute read

activpayroll | Managing payroll on a global scale is complex and the greater the number of countries involved...

 
February 19, 2024 | 2 minute read

Uncover the strategic decisions behind multi-country payroll solutions amidst economic uncertainty

 
February 19, 2024 | 2 minute read

activpayroll achieves a Star Performer and a Major Contender status in Everest Group multi-country payroll...

Let’s partner

By scaling your team, streamlining it, or simply ensuring your people are taken care of, we bring absolute clarity to your global business. Click below and find out what a partnership with activpayroll looks like.