Scottish income tax
Scotland sets its own income tax rates and bands. They include a starter rate and an intermediate rate, and the higher rates are above those in England. This changes the take-home pay of directors paid a salary in Scotland. Dividend tax, National Insurance and corporation tax are UK-wide. We plan salary and dividends for directors in Scotland using the Scottish bands.
Startups in Aberdeen
Aberdeen has strengths in energy, engineering and food and drink. Business Gateway can help with local grants and advice, and our funding page explains how we help you get ready for a loan, a grant or investment.
What do Aberdeen energy contractors need to sort out first?
Aberdeen's energy sector relies heavily on contractors, and much of the work crosses borders. Where the end client is medium or large, the off-payroll working rules give it the status decision, and a decision that the contract is inside IR35 changes both your take-home pay and what you can claim. Working abroad raises questions about tax residence and double taxation, which are best answered before a contract starts. Travel and subsistence relief depends on the workplace being temporary, and under the 24-month rule a long rotation at one site can stop it being temporary. Scottish income tax rates also apply to your earnings, while corporation tax, dividend tax and National Insurance are UK-wide.
