Scotland receives devolved taxation
Scotland will have powers to set its own rate of income tax from April 2016
Scotland will have powers to set its own rate of income tax from April 2016
SCOTLAND has been granted the right to set its own rate of income tax to be administered by HM Revenue and Customs for Scottish taxpayers.
The powers come after the Scotland Act 2012 was given Royal Assent and is set to apply from April 2016. As a result, Scotland will be able to create new taxes and devolve additional taxes.
Income tax in Scotland will be administered through PAYE for employees and pensioners, with HMRC issuing tax codes in the weeks and months leading up to April 2016, identifying those who will become Scottish taxpayers. Employers will then deduct the appropriate tax, which could be higher or lower than the rates in force in the rest of the UK.
The Act also fully devolves the power to raise taxes on land transactions and on waste disposal to landfill. It is expected that this will take effect in April 2015, at which point the existing stamp duty land lax and landfill tax will cease to be imposed in Scotland.
The definition of a Scottish taxpayer is based on the location of an individual’s main place of residence, which will be further clarified by HMRC in due course.
More about:
The numbers you crunch tell a story. Your expertis...
12yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleATT technical officer, David Wright, considers the implications of HMRC’s decision to remove employees with income between £100,000 and £150,000 from ...
View articleAccountants with contractor clients must take practical steps in an attempt to fly under HMRC’s radar Read More...
View articleAre taxpayers aware of their self-assessment obligations before they come to you? In a consultation due to close shortly, HMRC is looking at whether t...
View articleATT technical officer, Emma Rawson, takes a look at HMRC’s new call for evidence which explores potential reforms to how and when individuals with pro...
View articleTax managers warn of complexities in HMRC’s WFH tax allowances Read More...
View articleHMRC has experienced an increase in its revenue due to further investigations in the year 2018/19. Read More...
View articleLast year, HMRC imposed a record £860m in penalties on individual taxpayers, up 24% from £694m in 2017/18, according to accounting group UHY Hacker Yo...
View articleThe Low Income Tax Reform Group believes the government should have included tax initiatives in its plans for disabled people and employment Read More...
View article