Border politics - how similar jobs in the same firm deliver different tax bills

A postcode lottery for income tax is creating pay disparities for colleagues in cross-border firms, as Scotland's devolved six-tier system results in higher bills for many workers compared to England [1]. Since 2018, the Scottish government has operated a more progressive income tax system with six bands, including a 19% starter rate below the UK's 20% basic rate and higher rates reaching 48% [1]. This creates tangible differences for workers living near the border. For example, a person in Gretna earning £50,000 a year pays £1,496 more in annual income tax than a colleague in Carlisle with the same salary [1]. The gap widens significantly for higher earners, reaching about £4,000 for someone earning around £100,000 [1]. Graham Poles, a tax partner at the Carlisle-based firm Armstrong Watson, noted colleagues in Scotland paying a 42% higher rate sit next to English colleagues who remain basic rate taxpayers [1]. Despite the higher taxes for some, the Scottish Fiscal Commission forecasts that 55% of Scots pay less tax under this system than they would elsewhere in the UK, though savings for lower earners are modest [1]. The revenue supports devolved public services, including free university tuition and free NHS prescriptions for Scottish residents, unlike in England [1]. Scott McIver, a senior tax manager living in Dumfries, acknowledged a general acceptance that living in Scotland means paying more tax, but said the current difference is not enough to make him uproot his family [1]. The issue is a focal point in the south, with Poles stating it's a frequent topic in border-area offices [1].