Tax codes one by one
Scottish tax codes: SBR, SD0 to SD3, S0T and SK
Every Scottish code starts with S. The flat ones charge a single rate; the others run through six bands.
SD0 takes more over the year
£99.99
| SBR | SD0 | |
|---|---|---|
| Tax-free amount | none | none |
| Tax, first month | £166.60 | £174.93 |
| Tax over the year | £1,999.80 | £2,099.79 |
| Take-home after tax | £8,000 | £7,900 |
Same pay every month, HMRC’s cumulative method, Income Tax only (no National Insurance).
Scottish taxpayers have their own family of tax codes, all starting with S. Four of the flat-rate codes exist only in Scotland, because the Scottish scale has six rates instead of three. SBR charges the Scottish basic rate of 20% on every pound, not the starter rate of 19%. SD0 charges the intermediate rate of 21%, SD1 the higher rate of 42%, SD2 the advanced rate of 45% and SD3 the top rate of 48%. GOV.UK describes all five as codes usually used when you have more than one job or pension; the choice follows the band your main income already reaches. On a second job paying £10,000 a year, SBR takes £1,999.80, SD0 £2,099.79, SD1 £4,199.58, SD2 £4,499.55 and SD3 £4,799.52. Two other codes keep the bands: S0T gives no allowance but charges the six rates in turn, and SK adds an amount to your pay before the Scottish bands apply. There is no SNT, and the emergency code never carries the S.
Tax on a second job with BR, D0 or D1
With SBR, over the year
£1,999.80
| SBR (20%) | £1,999.80 |
| SD0 (21%) | £2,099.79 |
| SD1 (42%) | £4,199.58 |
| SD2 (45%) | £4,499.55 |
| With S0T | £1,960.13 |
Rules read on HMRC’s texts by Radif Partners · Editorial policy · Method
The flat-rate Scottish codes
The employer guidance lists each Scottish flat code as tax taken from all income at one named Scottish rate, for a second job or pension. The table adds the range of main income at which each code usually fits, using the Scottish bands for 2026 to 2027 with the standard allowance.
| Code | Rate charged | Main income already reaches | Tax on £800 in one month | Tax on £10,000 a year |
|---|---|---|---|---|
| SBR | basic, 20% | up to £29,526 | £160.00 | £1,999.80 |
| SD0 | intermediate, 21% | £29,527 to £43,662 | £168.00 | £2,099.79 |
| SD1 | higher, 42% | £43,663 to £75,000 | £336.00 | £4,199.58 |
| SD2 | advanced, 45% | £75,001 to £125,140 | £360.00 | £4,499.55 |
| SD3 | top, 48% | over £125,140 | £384.00 | £4,799.52 |
The logic is the same as with BR and D0 elsewhere in the UK. Income Tax is charged on total income, so a second income sits on top of the first and is taxed at whatever rate applies at that height. If the main salary is £50,000, already past £43,662, every extra pound is taxed at 42%, and SD1 takes exactly that.
Codes for two jobs
Expected codes
S1257L + SD1
| Tax due for the year | £13,182.05 |
| Second job with 1257L by mistake | £0.00 |
| Second job with its expected code | £4,199.58 |
Why SBR is basic rate, not starter rate
Scotland's first band after the allowance is the starter band at 19%, which ends at £16,537 of income. Even so, SBR charges 20%. HMRC's PAYE specification ties BR to the basic rate in each scale, and in the Scottish scale the basic rate is the second step. When the main job has already filled the starter band, every pound of the second income falls at 20% or above, and SBR matches the tax due on it.
S0T and SK: Scottish codes that keep the bands
S0T means no tax-free pay, either because the allowance is used up or because a new employer lacks your details. Unlike SBR, it runs the pay through all six Scottish rates, starting at 19%. On £2,000 in one month on a month 1 basis, S0T takes £402.56, while SBR would take £400.00. Payments made after you leave a job, once the P45 is issued, are also taxed with S0T if your code had the S prefix.
SK is the Scottish form of a K code: the number shows an amount added to your pay, because deductions such as company benefits or tax owed exceed your allowance. The specification groups K, SK and CK codes together, and the same safeguard applies to each: the tax on any pay cannot be more than 50% of it. With SK475 and £2,000 a month, the payroll taxes £2,000 plus £396.59 through the Scottish bands, giving £485.72 in month 1.
Checking that the S is right
Every code above depends on HMRC treating you as a Scottish taxpayer, which follows your main home. If you moved to or from Scotland, update your address in your HMRC online account; HMRC backdates the change to 6 April of that year. The specification explains how the payroll copes: on a cumulative code, the software switches to the new set of rates and bands from that point while keeping your taxable pay and tax to date, so the year evens out on later payslips. On a week 1 or month 1 code, each pay keeps being taxed alone until HMRC sends a cumulative code, and any difference is put right then or after the year ends. If the band behind an SD code looks wrong, check the estimated pay held for each job. For the standard code and the full table of bands, see S1257L.