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 Glasgow
Glasgow has strengths in engineering, creative industries and financial services. 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 is different about running a business in Glasgow?
Income tax is the main difference for a Glasgow business. Scotland sets its own rates and bands for income other than savings and dividends, so the same earnings produce a different personal tax bill here. National Insurance, dividend tax, corporation tax and VAT are UK-wide, so a director's split between salary and dividends has to be worked out on the Scottish bands. Glasgow's engineering and manufacturing companies can claim the Annual Investment Allowance on plant and machinery, and full expensing on qualifying new equipment, with the relief falling in the accounting period of the purchase. Creative businesses in the city also need to account correctly for project income and grants.
