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.
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy