Scottish Tax Codes Explained: The S Prefix

If your tax code starts with the letter S, you are taxed under the Scottish rate of income tax. This guide explains what an S tax code means, why it exists, and how to check yours is right.

What does an S tax code mean?

An S at the start of your tax code, for example S1257L, means HMRC has you down as a Scottish taxpayer, so your income tax is worked out using the rates and bands set by the Scottish Parliament rather than those for the rest of the UK. The numbers and other letters in the code work the same way as a standard code, the S simply flags which set of rates applies.

Who is a Scottish taxpayer?

Your tax status is based on where your main home is, not where you work. If your only or main residence is in Scotland for most of the tax year, you are usually a Scottish taxpayer and should have an S code. If you move into or out of Scotland, your status can change, and your code should change with it.

Why Scotland has different tax codes

Income tax on earnings is partly devolved, so the Scottish Parliament sets its own income tax bands and rates each year. These differ from the rest of the UK and Scotland generally has more tax bands. The exact rates and thresholds are set annually, so it is worth checking the current year’s figures, but the key point is that an S code means Scottish rates apply to you.

Checking your S tax code is right

Two mistakes are common. Some people have an S code when they no longer live in Scotland, and some have a standard UK code when they have moved to Scotland. Either can mean you pay the wrong amount of tax. It is worth checking your code, especially after a house move. See our guides to the 1257L tax code and emergency tax codes, which work the same way with an S in front.

If your code has been wrong, you may have overpaid and be due a refund.

Frequently asked questions

What does the S in my tax code mean?

It means you are treated as a Scottish taxpayer and your income tax is calculated using Scottish rates and bands.

Does the S code change how my rebate works?

No. You claim work expenses the same way. The S only affects the rates used to work out your tax.

I have moved out of Scotland but still have an S code. What should I do?

Tell HMRC your current address. If your code was wrong, you may have overpaid and be able to claim it back.

Do Scottish taxpayers pay National Insurance differently?

No. National Insurance is the same across the UK. Only income tax rates differ in Scotland.

Check your code and what you are owed

A wrong tax code, with or without an S, can mean you have overpaid tax.

Check what you are owed with TaxPro, on a no win, no fee basis.