HMRC prepares taxpayers for Scottish Rate of Income Tax
1st December 2015 | News
HM Revenue and Customs (HMRC) is writing to potential taxpayers located in Scotland this week ahead of its next stage of preparations for the implementation of the new Scottish Rate of Income Tax.
The letters, which will be distributed to more than 2.6 million people across Scotland, are designed to confirm the accuracy of HMRC’s records of Scottish-based taxpayers.
The vast majority of recipients, who find their records to be up-to-date with HMRC, do not need to take any further action.
The Scottish Rate of Income Tax is to be unveiled by the Scottish Government within its 16th December Budget, and will come into effect on 6th April 2016. It will affect all British taxpayers who live in Scotland, regardless of where they work.
Income tax will be reduced by 10p in the pound for all Scottish-based taxpayers, but they will then be required to pay a new Scottish rate, which could be 10p or more or less than 10p.
Those paying the new rate will note their tax code changes to an ‘S’ prefix but their income tax will continue to be collected from pay and pensions in the same way as it is now.
Edward Troup, tax assurance commissioner and second permanent secretary, HMRC, said: “HMRC is taking the next step towards implementing devolution of tax powers to the Scottish Government.
“The new tax rate will apply to everyone who lives in Scotland. If we’ve got your address right, there’s no need to do anything – the small number who need to change their address details can do so quickly and easily online at www.gov.uk.”
For additional guidance and support on your tax position, please don’t hesitate to arrange a free initial consultation with your local TaxAssist Accountant.
We give honest, friendly advice that’s jargon-free and helps you get to grips with the impending Scottish Rate of Income Tax.