Almost 826,000 UK families shared £632.2 million in government top-ups towards their childcare bills with Tax-Free Childcare in the 2024 to 2025 tax year
Working families urged to sign up now to give their summer plans a financial boost
Supporting the government’s mission to grow the economy and deliver on the Plan for Change
Nearly 826,000 working families saved up to £2,000 per child with Tax-Free Childcare in the 2024 to 2025 tax year. The money helps families pay for their childcare, as part of the government’s Plan for Change to put more money in people’s pockets.
HM Revenue and Customs (HMRC) is encouraging those yet to sign up for Tax-Free Childcare, to do it now and give their summer plans a financial boost.
Latest figures from HMRC show in March 2025, 36,095 families in Scotland used the scheme to save on their annual childcare bills, an increase of 4,925 families compared to the previous March.
Working families who sign up to Tax-Free Childcare can boost their annual budget by up to £2,000 per child up to the age of 11 or up to £4,000 up to the age of 16 for a disabled child.
Parents can use the scheme to help towards the cost of approved childcare whether that’s nursery for younger children, or for older children – wraparound or after school care clubs during term time or holiday clubs for the long summer holidays ahead.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Summer can be an expensive time if you have children. Whatever you’re planning, Tax-Free Childcare can give your plans a welcome financial boost. Go to GOV.UK to start saving today.”
For every £8 deposited in a Tax-Free Childcare account, the government tops it by £2, which means parents can receive up to £500 (or £1,000 if their child is disabled) every 3 months towards paying for their childcare costs.
Once families have opened a Tax-Free Childcare account, they can deposit money and use it straight away or keep it in the account to use it whenever it’s needed. Any unused money in the account can be withdrawn at any time.
Families could be eligible for Tax-Free Childcare if they:
have a child or children aged 11 or under. They stop being eligible on 1 September after their 11th birthday. If their child has a disability, they receive up to £4,000 a year until 1 September after their 16th birthday
the parent and their partner (if they have one) earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
each earn no more than £100,000 per annum
do not receive Universal Credit or childcare vouchers
Our charity recently released a new Index into the financial wellbeing of older Scots. Across the country, the results were stark, and closer to home they reveal the tough choices many in later life in the Lothian region are being forced to make.
Our data has shown that, shockingly, in the region, 22% of older people have skipped meals in the last year. Just 20% say that the State Pension is enough to cover basic living expenses.
The Scottish Government recently put forward its Programme for Government, and again, despite rising levels of pensioner poverty, there was no proposed plan to tackle this.
At Independent Age, we know urgent action is needed. A pensioner poverty strategy should include a Pension Credit awareness campaign, which is a vital source of support for older people on a low income that a significant number in the region – 18% – do not even know about.
The results of our Index show the unacceptable financial difficulties many older people in the Lothian are experiencing. This must change. Both the UK and Scottish Government must act.
Debbie Horne
Scotland Policy and Public Affairs Manager at Independent Age
Independent Age is a national charity supporting older people facing financial hardship. You can access advice on money, housing, health and care at independentage.org or through a free helpline on 0800 319 6789.
Over 24,000 in Scotland to receive the Fairer Share Payment
Nationwide announces £2.8bn of member value as it reports full year results
Includes £1bn of direct payments to eligible members and £1.8bn in better than average rates and incentives
New Fairer Share Payment means over 4m eligible members with current account & qualifying savings or mortgage get £100
Launch of new market leading 5% Member Exclusive Bond and a £200 member switching incentive
Nationwide number one for customer service for 13th year running amongst peers
Nationwide returned a record £2.8 billion in value to members last year, including £1 billion in direct payments to eligible members. It also delivered £1.8 billion in better than average rates and incentives, with deposit rates over 30 per cent higher.
Britain’s biggest building society today announced outstanding full year results with record growth in retail deposits and net mortgage lending, including help for more first-time buyers than any other lender in the UK. Statutory profit before tax rose to a record £2.3 billion, even after returning £1 billion directly back to members through last year’s Fairer Share Payment and The Big Nationwide Thank You.
Nationwide announced a new Fairer Share Payment today, with over four million members receiving £100 each. The payment goes to eligible members choosing Nationwide for their everyday banking, in addition to holding a qualifying savings or mortgage product. It will be paid directly into their Nationwide current account between 18 June and 4 July.
It is also launching a market-leading5% Member Exclusive Bond and a £200 member-only switching incentive.
Debbie Crosbie, Nationwide’s Chief Executive, said: “Nationwide has had an outstanding twelve months.
“We returned a record £2.8 billion in value to our members and recorded our highest ever year for growth in mortgage lending and retail deposit balances, and we remain first for customer service.”
The Member Exclusive Bond is available from today to all 16 million existing members and can be opened in branch, online or via the Banking App. Members saving the maximum £10,000 would receive £762.50 in interest after 18 months – over £150 more than they would receive over the same period in our next highest-rate bond (4% 1 Year Fixed Rate Bond).
Members who didn’t have their main current account with Nationwide on 31 March can benefit from a £200 Member Exclusive Current Account Online Switch Offerfrom today.
Nationwide remained first for customer service for the 13th year running, and increased its year-end lead to the highest it has been for eight years. It was also named as the Which? Banking Brand of the Year last week.
Nationwide has a unique Branch Promise and 5.7 million customers visited its branches last year – a year-on-year increase of four per cent. Over 30 per cent of new current accounts and 40 per cent of ISAs were opened in branch last year.
Nationwide also continued to invest in digital channels – providing members choice in how they bank.
The Society saw an 11 percent increase in app usage last year. It added over 30 new features to the Nationwide and Virgin Money apps last year; other innovations included an automated income verification and valuation tool that enable mortgage borrowers to receive an offer within just 20 minutes from application.
Nationwide’s products are now drawing younger people. It attracted more than a quarter of the student current account market and helped more first-time buyers than any other UK lender.
Over 12 million eligible members will receive £50 each in a one off ‘Big Nationwide Thank You’
Nationwide’s financial strength, which its members helped build, allowed it to acquire Virgin Money
Latest way Nationwide is showing its mutual difference by returning greater value to its members
Nationwide also hopes to announce an additional 2025 Fairer Share Payment in May, depending on financial performance
Nationwide is giving over 12 million members a share of over £600 million to thank them for enabling the successful purchase of Virgin Money. They will each receive £50 and most of the payments will be made next month.
Nationwide’s financial strength, which its members have helped build, allowed it to acquire Virgin Money in 2024. As a result, Nationwide is now even stronger and able to deliver the benefits of mutuality to even more people in the UK.
Over 799,000 in Scotland will receive the Big Nationwide Thank You.
Top areas in the region to benefit, include over 79,000 people in Fife, nearly 73,000 people in Edinburgh, nearly 62,000 people in Glasgow and over 60,000 people in South Lanarkshire.
Debbie Crosbie, Nationwide CEO, said:“Nationwide became even stronger when it bought Virgin Money and we are already improving services for its customers. The Big Nationwide Thank You recognises the role our members played in building the financial strength that made the deal possible.
“It’s another of the very real benefits of being a member of Nationwide and our modern mutual model.”
Nationwide is ranked as the UK’s best high street banking provider for service1. In November it announced record first half growth in mortgages and deposits and an increase in market share.
After its acquisition of Virgin Money, it has continued to invest in improving customer service and recently revealed that it had become the UK’s top lender for first-time buyers2. It is now the country’s second largest provider of mortgages and savings accounts and the only mutual full-service banking provider in the UK.
The ‘Thank You’ payment is the latest demonstration of its mutual difference – a way of delivering even more value back to its members. Since April 2023, Nationwide has provided over £3.5 billion in member value, including £729 million through two Nationwide Fairer Share Payments.
The ‘Thank You’ payments will be made from 9 April across the country (see regional breakdown in Notes to Editors3). Nationwide will write to members receiving the payment from today, letting them know when and how the money will be paid4.
The payments will go to over 12 million members who had a savings or current account, or mortgage, at the end of last September.
Additionally, they must also have made at least one transaction on their current account or savings or had a balance of at least £100 in their current account, savings or mortgage in the 12 months to the end of September 2024. They must also still have their accounts or mortgage at the time the payment is made.
The Big Nationwide Thank You is separate to the Fairer Share Payment, which Nationwide wants to repeat this year, although this will depend on Nationwide’s financial performance. A decision will be made in May, when it publishes its results for the 2024/25 financial year.
Providers will have to ensure lending is affordable – stopping users from accumulating unmanageable debt
Rules deliver better protection for shoppers and clarity for innovative sector after years of uncertainty
Millions of shoppers are set to be protected by new rules for Buy-Now, Pay-Later products.
Buy-Now, Pay-Later products have become increasingly popular in recent years as they allow people to spread the cost of purchases over time, but users currently do not have access to a range of key protections provided by other consumer credit products.
The Government has today launched a consultation on proposals to fix this by bringing Buy-Now, Pay-Later companies under the supervision of the Financial Conduct Authority (FCA) and applying the Consumer Credit Act, ensuring users receive clear information, avoid unaffordable borrowing, and have strong rights when issues arise.
Economic Secretary to the Treasury Tulip Siddiq said: “Millions of people use Buy-Now, Pay-Later to manage their finances, but the previous government’s dither and delay left them unprotected.
“We promised to take action before the election and now we are delivering. Our approach will give shoppers access to the key protections provided by other forms of credit while providing the sector with the certainty it needs to innovate and grow.”
The new rules will allow the FCA to apply rules on affordability – meaning that Buy-Now, Pay-Later companies will have to check that shoppers are able to afford repayments before offering a loan, which will help to prevent people building up unmanageable debt.
Companies will also need to provide clear, simple and accessible information about loan agreements in advance so that shoppers can make fully informed decisions and understand the risks associated with late repayments.
Consumer Credit Act information disclosure rules will be disapplied so that the FCA can consult on bespoke rules that ensure users are given this information in a way that is tailored to the online setting in which Buy-Now, Pay-Later products are generally used.
Buy-Now, Pay-Later users will be given stronger rights if issues arise with products they purchase, making it quicker and easier to get redress. This includes applying Section 75 of the Consumer Credit Act, which allows consumers to claim refunds from their lender, and access to the Financial Ombudsman Service to make complaints.
Rocio Concha, Which? Director of Policy and Advocacy, said: “Which? has been a leading voice calling for the regulation of Buy Now Pay Later for years so it’s positive that new rules are coming in that should provide much-needed protections for users of these products.
“Our research found that many BNPL customers do not realise they are taking on debt or consider the prospect of missing payments, which can result in uncapped fees, so clearer information about the risks involved as well as the use of affordability checks and options for redress would be a win for consumers.
“We are keen to see legislation quickly passed to ensure that BNPL users are protected as strongly as consumers using other credit products.”
Sebastian Siemiatkowski, Co founder and CEO of Klarna, said: “Congratulations to Tulip Siddiq and the government on moving quickly!
“They have been working with the industry and consumer groups long before coming into office. We’re looking forward to carrying on that work to put proportionate rules in place that protect consumers while fostering growth.”
Michael Saadat, International Head of Public Policy at Clearpay said: “We welcome today’s update from City and FinTech Minister, Tulip Siddiq, on BNPL regulation.
“It is encouraging that HM Treasury has listened to industry feedback and evolved the previous framework to ensure a more proportionate approach to regulation.
“We have always called for fit-for-purpose regulation that prioritises customer protection, delivers much-needed innovation in consumer credit and that sets high industry standards across the board.
“We will continue to support the Government and the FCA to deliver fit-for-purpose regulation that ensures consumers are protected in a way that supports the UK’s thriving FinTech sector.”
Chris Woolard, Author of the 2021 Woolard Review, which looked at change and innovation in the unsecured credit market, said: “Today marks a significant milestone for consumer-focused financial regulation.
“The proposed package of regulation would implement the recommendations of the Review and mean millions of people up and down the UK will benefit from stronger financial protection as they borrow using BNPL, especially the most vulnerable in society. The incoming regulation will also provide long-term certainty and standards for the market.”
The consultation will be conducted quickly – closing on 29 November – to reflect the urgent need for action to protect consumers.
Final legislation is expected to be laid in Parliament in early 2025. Once the legislation is laid, the FCA will finalise the rules so they can take effect in 2026 – bringing clarity to the sector after years of uncertainty about how it will be regulated.
This follows the Prime Minister saying he would remove regulation that needlessly holds back investment and growth. Today’s announcement brings in much needed regulation that stops people spiralling into debt.
Justin Basini, Co-Founder and CEO of The ClearScore Group said: “We welcome this consultation to bring Buy-Now, Pay-Later borrowers under the same protections and creditworthiness assessments as other mainstream financial products such as credit cards and loans.
“It is a sensible step in ensuring that this new, important form of credit continues to provide much-needed flexibility for consumers while also managing any risks.”
With statistics this year from Age Scotland showing that over 400,000 older people living in Scotland have been targeted by scammers, it has never been more important to protect yourself and others from falling victim to fraudsters. Crimes include crypto currency, scam text messages and fake phone calls or emails impersonating trusted organisations such as banks.
While a rapid rise in cases were seen across all age groups, older people are particularly more susceptible. Incidences of fraud crime against this age demographic in Scotland are rising, as scammers take advantage of their relative unfamiliarity with technology, and potentially more trusting nature.
To mark International Day of Older Persons on 1st October, Scottish charity the Cyber and Fraud Hub has relaunched its Older Person’s guide to encourage older residents to be vigilant when it comes to online scams.
Originally produced by the Cyber and Fraud Centre Scotland, AGuide to Avoiding Fraud and Scams for Older People addresses some of the most common forms of cyber and fraud crime, and will be distributed through local community networks as well as being available online.
The guide aims to empower older adults to navigate the digital landscape safely and securely, and provides insights into common online scams, identifies red flags to watch out for, and outlines steps to take in case of suspected fraud.
The Cyber and Fraud Hub is the first charity of its kind in Scotland, offering comprehensive support tailored specifically to individuals affected by cyber and fraud crimes. The Hub is built on strong relationships with Police Scotland and the banking sector, and its mission is to ensure that members of the public across Scotland receive the support they need when they are most vulnerable.
Since the Cyber and Fraud Hub launched, the team has dealt with around £250k of crypto frauds across all age groups and stopped or prevented around £60k from being transferred to fraudsters. Victims of crypto currency scams usually engage with individuals who are unknown to them through unsolicited approaches on WhatsApp, Facebook or dating apps, for example, or click on links by AI generated celebrities supposedly promoting crypto scams.
Other common scam and fraud attempts affecting older people most commonly include telephone scams, banking scams, WhatsApp family and friends impersonation scams, parcel delivery scams and investment and pension scams.
Alex Dowall, Head of Fraud and Cyber at the Cyber and Fraud Hub, said: “Anyone of any age can fall victim to a scam and fraud attempts are on the increase for all age groups, however we have noticed a huge increase in scammers repeatedly targeting older people.
“The Hub was launched to offer Scotland’s only dedicated cyber support for all members of the public. We understand that our older residents are less likely to access online and social media platforms, so we are encouraging people to have a conversation about our guide with their older friends, family and neighbours to empower them to be as vigilant as possible against fraud and scam attempts.”
International Day of Older Persons raises awareness of opportunities and challenges faced by ageing populations, and to mobilise the wider community to address difficulties faced by older people.
While the day focuses on many issues, Cyber and Fraud Hub urges older people to:
Be cautious of unexpected calls, emails, or letters.
Never give out personal information over the phone or email.
Be suspicious of any offers that sound too good to be true.
Shred personal documents before throwing them away.
Talk to someone you trust about your finances.
To access the guide, visitthe Resources section on the Cyber and Fraud Hub at cyberfraudhub.org.
Anyone who finds themselves a victim of a cyber or fraud crime can call the incident response helpline on 0808 281 3580.
Energy prices and cost-of-living crisis top list of financial concerns
Women are more concerned about external factors, such as a recession, impacting their finances
People plan to increase time spent reviewing their finances due to rising costs
Nearly half (46%) of UK adults are worried that their standard of living will fall over the next 12 months, reveals research conducted on behalf of Handelsbanken Wealth & Asset Management.
Concern was highest among those in their 30s (55%), dropping to 38% of over 50’s – likely due to accumulated savings.
Despite recent declines, energy prices still top people’s biggest concerns on the factors threatening their living standard, along with the cost-of-living crisis and high prices caused by inflation.
External risks worry women more
Women are more concerned than men about most external risks to their finances, including inflation (79% versus 72%), rising interest rates (59% versus 52%) and a recession (83% versus 73%). However, men worry more about geopolitical instability (57% versus 50% women) and stock market volatility (42% versus 37% women), with the latter perhaps due to being more inclined to invest, the research also revealed.
Divided on death and divorce
Men are more concerned about losing wealth through divorce (24% versus 19%), whereas women are more likely to fear the financial impact of their partner or spouse dying (47% versus 42%).
Proportion of people concerned about various factors impacting their personal finances
Factor
Overall proportion of individuals
Women
Men
Energy prices
78%
80%
74%
The cost-of-living crisis / recession
78%
83%
73%
Inflation
76%
79%
72%
A global economic downturn
63%
63%
63%
Rising interest rates
55%
59%
52%
Income tax increases
54%
56%
53%
Geopolitical instability
53%
50%
57%
Scams and frauds
51%
56%
46%
Death of a partner / spouse
45%
47%
43%
Stock market volatility
40%
42%
37%
Time invested
The study showed that these concerns are changing how much time we spend reviewing our finances each month.
On average, consumers spend over six hours a month on their finances, with groceries and other household costs taking up the most time (52 minutes) followed by bank account management (48 minutes), and paying for holidays (42 minutes). Wealthier people with assets over £100k spend longer keeping their financial house in order, averaging eight hours a month. Men, meanwhile, typically spend around 20% longer than women.
A tougher financial climate means we expect to spend more time managing our finances overall, largely in response to dealing with rising costs and stubborn inflation (48%) and the need to save more money (41%).
When it comes to those looking to decrease their time investment, nearly a third (29%) said they plan to reduce the time spent looking at their financial affairs as it makes them feel too anxious.
This may go some way towards explaining the fact that a significant proportion of people don’t currently spend any time at all reviewing commitments such as their pensions (33%), insurance (31%) or investments (23%).
Alasdair Wild, Area Manager at Handelsbanken Wealth & Asset Management, said:“Dealing with the ongoing cost-of-living and keeping your finances in check can be a time-consuming process and a real challenge for most people given there only are so many hours in the day.
“However, doing the bare minimum is unlikely to offer much protection in such a tough financial climate, and investing time to plan and manage your finances and, when required, bringing in external professional support, can make a real difference to protecting your standard of living.
“While avoiding the issue may provide temporary relief, it will only exacerbate problems down the line, so seeking support is key.”
Click here to view the full research report Gender and generation: unravelling the wealth gap.
Millions of workers checking payslips tomorrow will see a tax cut
As the economy turns a corner, the government is rewarding hard work, with over £900 a year boost for typical worker
Marks another step in long-term ambition to end unfair double tax on work
There are 27 million employees in the UK, and today [Tuesday 30 April] millions of them on monthly salaries will wake up with a little more cash in their pockets, as the UK government’s Spring Budget cut to National Insurance appears in April’s pay-packets.
Since Autumn 2023, National Insurance Contributions (NICs) for workers have been slashed by a third – the largest cut to employee and self-employed NICs in history.
The main rate of employee National Insurance has been cut for 27 million workers from 12% to 8%, saving the average employee on £35,400 over £900 a year. An average full-time nurse will save £1053, a typical junior doctor £1508 and an average teacher £1270.
These cuts are possible because the economy is turning a corner, thanks to the government’s decisive action that has helped bring inflation down from 11.1% to 3.2% and ensure borrowing costs start to fall. Because of this progress, the government can now cut taxes to reward work and grow the economy.
This marks another step towards the longer-term ambition to end the unfair double tax on work and abolish employee and self-employed NICs altogether.
These tax cuts – worth over £20 billion a year – have been achievable while protecting spending including keeping the Triple Lock and the government has commitment to going further only when it’s possible to do so.
Prime Minister Rishi Sunak said: ““At the start of last year I made to pledge to half inflation. And because of the difficult decisions we have taken, inflation has more than halved and we are now able to reward work, and cut taxes for millions of workers who are seeing the benefit in their pay checks today.
“We have now cut National Insurance by £900 because it’s unfair that workers pay double tax on their income. We need to make it much simpler and much fairer and we are going to continue cutting this tax until it’s gone – while continuing to protect pensioners with the triple lock and providing record levels of funding to the NHS.”
Chancellor of the Exchequer Jeremy Hunt said: “We’re on the right track – we’ve been able to slash National Insurance to return hundreds of pounds back into the pockets of hard-working Brits because of the decisions we’ve made to manage the economy responsibly.
“Over the years ahead we want to get rid of National Insurance completely for workers – it is an unfair double tax on work and we’ve shown we can protect spending on public services while eliminating it.”
The tax cuts to date mean that for single individuals on average salaries, personal taxes would be lower in the UK than every other G7 country, based on the most recent OECD data.
The smart nature of the tax cuts will also help grow the economy by bringing more people into the labour market. The Office for Budget Responsibility (OBR) expects that, as a result of these combined cuts, total hours worked will increase by the equivalent of almost 200,000 full-time workers by 2028-29.
To mark the record cuts to NICs, HMRC launched an updated online tool earlier this month to help people understand how much they personally could save in National Insurance this year.
These cuts to reward work follow a raft of changes that came into force on 1 April and could save households up to £3,850 a year to help those struggling with cost-of-living while igniting the economy.
This includes a record increase in the National Living Wage from £10.42 an hour to £11.44, and a 12.3% drop in energy bills from the previous quarter.
In addition, households can benefit from a separate increase to the Local Housing Allowance that will mean some of the poorest families on either Universal Credit or Housing Benefit will gain £800 a year on average.
Who does this help?
The combined cuts to National Insurance mean:
A ‘hard-working’ family with two earners on the average salary of £35,400 each will be better off by £1,826.
An average full-time nurse on £38,900 will be better off by £1,053.
A senior nurse with five years experience on £42,618 will be better off by £1,202.
The average police officer on £44,300 will be better off by £1,270.
A cleaner working night shifts on £21,058 will be better off by £340.
A typical junior doctor on £65,000 will be better off by £1,508.
A typical self-employed plumber on £34,361 will be better off by £846.
The typical teacher on £44,300 will be better off by over £1,270.
SCOTTISH Building Society has doubled down on its commitment to offering Edinburgh customers passbook accounts, in a bid to support them with their financial needs.
With more than 67 percent of Scottish Building Society members across Edinburgh holding a passbook, they will continue to have access to the account, which can play a crucial role in helping them to manage their finances.
The move comes after several major banks across the UK announced they would be removing passbooks, which provide a paper record of banking transactions, from their services.
Recently Virgin Money announced it would remove passbook savings accounts, resulting in 100,000 customers across the UK being told they will no longer be able to use them to pay in or withdraw cash in person.
Despite several banks now no longer offering the service, Scottish Building Society believes passbooks still have an important role to play in helping customers manage their finances.
Feeling reassured by physical evidence of how much they hold in their accounts many customers prefer to bank this way to manage their finances.
The rise in the cost-of-living crisis has prompted many people to revert back to using physical money in a bid to help them budget, with passbook savings accounts serving as a valuable tool in helping them to manage this.
Removing this service alongside many local branches closing risks leaving many customers feeling alone, particularly during this economic climate Scottish Building Society warned.
Scottish Building Society has made significant investment in its high street branches to provide accessible banking for all and enhance its physical presence in communities, with the society most recently opening a new relationship centre in Edinburgh in June last year.
Meanwhile, as part of its 175th anniversary celebrations, the building society launched the Scottish Building Society Foundation in May last year, an initiative designed to give back to Scottish communities with an incredible £175,000 designated to local charities and good causes across Scotland.
Paul Denton, CEO at Scottish Building Society, said: “As a mutual organisation owned by and run for the benefit of our members, we want to make sure we are providing customers with everything they need to manage their finances in a way which is easy for them and stress free.
“While online services are the main stay for a lot of customers, there is a large portion of people who are not confident in using online banking or simply don’t want to, and they can rightly feel aggrieved that they are facing the prospect of having to do so.
“At Scottish Building Society our purpose is to serve the local community, and this is why we will continue to offer passbooks as a vital tool for customers, as well as investing in our branches to provide accessible, in-person facilities which will serve their local communities. Simply put, we want to ensure our members have choice when it comes to managing their finances, and we believe in offering them that.”
Lisa McKay, Edinburgh Relationship Manager, Scottish Building Society, said: “”At Scottish Building Society we understand how important it is for members to have options, which works for them, for managing their finances. For many, this means having a physical passbook which helps them keep up to date on their accounts.
“Our passbook savings accounts can be a really useful tool in this regard and that’s why we are committed to continuing them. If you are interested in learning more about how passbook savings accounts, please give us a call or visit your local branch and we will be happy to support.”
People urged to check their tax code as new financial year begins
Progressive changes to Scottish income tax will raise valuable revenue for investing in public services, Deputy First Minister Shona Robison has said.
From today (Saturday 6 April 2024) a new Advanced income tax band will apply a 45% rate on annual income between £75,000 and £125,140. An additional 1pence will be added to the Top rate of tax meaning income over £125,140 will be taxed at 48%.
There are no changes to the Starter, Basic, Intermediate and Higher tax rates for earnings under £75,000. The Starter and Basic rate bands will increase in line with inflation and the Higher rate threshold will be maintained at £43,662.
The independent Scottish Fiscal Commission estimates that overall income tax will raise £18.8 billion in 2024-25.
Scottish taxpayers are being encouraged to check to ensure the tax code on their first payslip in the new financial year is accurate. People paying Scottish income tax should have a tax code that begins with an S.
Deputy First Minister Shona Robison said:“Scotland has the most progressive income tax system in the UK. The new Advanced band builds on that progressive approach, protecting those who earn less and asking those who earn more to contribute more.
“Only 5% of Scottish taxpayers will pay a higher tax rate 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 allows people in Scotland to benefit from a wide range of services and social security payments not provided elsewhere in the UK, including free prescriptions and free higher education. Council tax is less in Scotland than in England, even before factoring in a council tax freeze for 2024-25.
“I encourage everyone to check their first payslip in April to make sure their address is correct and that their tax code starts with an ‘S’. This will ensure that people are paying the right amount of tax on their income.”
The Scottish Fiscal Commission estimates that the cumulative impact of Scottish Government income tax policy decisions since 2017 will raise an additional £1.5 billion in 2024-25, compared to the position if UK Government tax policy had been matched during that time.
The new Scottish income tax bands and rates for the financial year 2024-25 are:
2024-25
Band
Rate
Starter
£12,571 – £14,876
19%
Basic
£14,877 – £26,561
20%
Intermediate
£26,562 – £43,662
21%
Higher
£43,663 – £75,000
42%
Advanced
£75,001 – £125,140*
45%
Top
Above £125,140
48%
Policies related to National Insurance Contributions and the Personal Tax Allowance remain reserved to the UK Government. Scottish Ministers continue to call for further tax powers to be devolved so decisions affecting the people of Scotland are decided by the Scottish Parliament.
The UK Government confirmed in the 2023 Autumn Statement that the UK-wide Personal Allowance will remain frozen at £12,570.
*Under the UK Government’s Personal Allowance policy, those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.
