Categorized | news

Will income tax for Scottish residents be more or less than in England?

Will income tax for Scottish residents be more or less than in England?

Scottish accountants could find themselves paying a different rate of income tax to their English counterparts in four years time after the Scotland Act was given Royal Assent.

The Scottish Parliament has been given the power to set its own rate of income tax and it is thought this will start happening in April 2016. The Scotland Act also allows for the creation of new taxes north of the border as well as the devolution of additional taxes.

HMRC will apply any changes to income tax through the PAYE system for employees and pensioners. Prior to April 2016, employers will receive tax codes from the Revenue, which will identify Scottish taxpayers. Employers will then need to deduct the appropriate rate of tax, which could be lower, higher or the same as the rate for other UK taxpayers.

The Revenue will issue further guidance, but the issue of residency is already causing concern. The new rates will only apply to taxpayers whose permanent abode is in Scotland.

Michael Moore, the secretary of state for Scotland, said that the granting of Royal Assent marked a historic day for the country and its voters.

The Scottish parliament has been given the power to make huge decisions that will impact the economy. The Scottish parliament will have the responsibility for raising about 33% of the country’s budget.

It’s taken a long time and a lot of hard work to get these new powers, but they are essential if the country is going to proceed with devolution, he added.

© 2012 All rights reserved. Reproduction in whole or in part without permission is prohibited.

Image: Rate of Flow by flattop341

Be Sociable, Share!

Leave a Reply

You must be logged in to post a comment.

  • Switch Accountants for FREE

    Switch Accountants for FREEAt K&B Accountancy Group we have introduced a simple and straightforward approach to changing accountants. We’re offering contractors, consultants and freelancers the opportunity to switch to K&B Accountancy Group for FREE without the need to pay for any ‘catch up’ or retrospective accountancy fees for the previous year’s accounts and corporation tax return* *T&Cs apply

our top 5 twitter posts

twitter

contractor accountants

contractoraccts



twitter Join the conversation
Free Telephone Advice