Tax Code SD1 Explained
SD1 taxes all income from this source at Scotland's Basic rate of 20% — with no Personal Allowance. It is the Scottish equivalent of England's BR code and produces identical take-home figures at the same gross salary. The S prefix indicates the taxpayer is a Scottish resident, which becomes relevant if the income is reassessed at a different band.
Who gets tax code SD1?
Scottish residents with a second job whose additional income falls into the Basic rate band (£15,398–£27,491 in 2025-26), and where the Personal Allowance is already used by primary employment. HMRC may issue SD1 instead of SBR in some circumstances, particularly when they have more information about total income levels.
Scottish Income Tax: Scotland sets its own income tax rates. For 2025-26, Scottish rates diverge meaningfully from England above ~£30,000 — the 42% Higher rate kicks in at £43,663 versus £50,270 in England. National Insurance is the same as the rest of the UK.
Take-home pay on tax code SD1 — 2025-26 examples
Examples below show Income Tax and take-home pay at common salary levels. National Insurance (NI) is also shown separately — NI is not affected by your tax code and applies on the same basis for all employees.
| Gross Salary | Income Tax | NI (est.) | Take-Home | Effective IT Rate |
|---|---|---|---|---|
| £20,000 | £4,000 | £594 | £15,406 | 20.0% |
| £25,000 | £5,000 | £994 | £19,006 | 20.0% |
| £30,000 | £6,000 | £1,394 | £22,606 | 20.0% |
| £35,000 | £7,000 | £1,794 | £26,206 | 20.0% |
| £40,000 | £8,000 | £2,194 | £29,806 | 20.0% |
| £45,000 | £9,000 | £2,594 | £33,406 | 20.0% |
| £50,000 | £10,000 | £2,994 | £37,006 | 20.0% |
| £60,000 | £12,000 | £3,211 | £44,789 | 20.0% |
| £75,000 | £15,000 | £3,511 | £56,489 | 20.0% |
| £100,000 | £20,000 | £4,011 | £75,989 | 20.0% |
Take-home = Gross − Income Tax − National Insurance. No pension, student loan or other deductions included. NI calculated at 8% between £12,570–£50,270 and 2% above. Effective IT Rate shows Income Tax as a percentage of gross salary.
If you have tax code SD1, here's what you should know
- Your tax code appears on your payslip, P60, and any correspondence from HMRC about your PAYE tax.
- Your employer uses this code to calculate how much Income Tax to deduct from each pay period — they do not set it themselves.
- If your circumstances change (new job, change in benefits, marriage allowance), your code should update automatically — but it is worth checking.
- You can view and update your tax code online via your Personal Tax Account at gov.uk.
- If you think your code is wrong, contact HMRC on 0300 200 3300 or use the HMRC app.
- An incorrect tax code can mean you overpay or underpay tax — overpayments are refunded, underpayments are collected in future years.
Frequently asked questions
What does tax code SD1 mean?
SD1 taxes all income from this source at Scotland's Basic rate of 20% — with no Personal Allowance. It is the Scottish equivalent of England's BR code and produces identical take-home figures at the same gross salary. The S prefix indicates the taxpayer is a Scottish resident, which becomes relevant if the income is reassessed at a different band.
Who gets tax code SD1?
Scottish residents with a second job whose additional income falls into the Basic rate band (£15,398–£27,491 in 2025-26), and where the Personal Allowance is already used by primary employment. HMRC may issue SD1 instead of SBR in some circumstances, particularly when they have more information about total income levels.
How much do I take home on tax code SD1 earning £30,000?
On tax code SD1 with a £30,000 salary, you take home £22,606 per year (£1,884 per month) after Income Tax of £6,000.
Is tax code SD1 correct for me?
Your tax code is set by HMRC based on your individual circumstances. If you believe your tax code is wrong, contact HMRC on 0300 200 3300 or check your Personal Tax Account at gov.uk. An incorrect code could mean you are paying too much or too little tax.
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