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Scotland Embraces New Income Tax System

If you are a contractor in Scotland then get ready for a new income tax system. It is now in force and ready to be assigned to your pay packet.

Scottish MPs recently lined up to sign their name to the bill that now separates Scotland from the rest of the UK…when it comes to income tax rates and bands. Is everybody happy though? Not exactly.

That’s because some self employed Scottish people (including contractors) will actually end up paying more tax as a result of the new system.

I predicted all of this of course, in a blog post a few months ago where I first commented on the plans to change the Scottish income tax system.

In that post I mentioned that not everybody would be pleased with the changes, and that some contractors might even consider a move South of the Border to friendlier tax rates.

Not only that, but I also made a point to highlight the fact that every single Scottish contractor needs to hire a contractor accountant.

With these new tax changes, and with some contractors expected to be paying a whopping 45% tax…I reckon that a contractor accountant is now more important than ever before.

Don’t even try to do the books yourself anymore. It just isn’t worth it and will almost guarantee you lose money. Be smart and get a professional on your side…a contractor accountant.

Back to the new income tax system in Scotland, and many of the Scottish MPs who signed their name to the bill are very pleased with themselves.

In their opinion, all of this extra funding will be great for local services…and let’s face it, is going to raise more cash for their wages, no doubt.

It seems to be the move that politicians go to these days when they want extra money. “Just shake down the contractors,” they say, and with those words a bill is drawn up that changes the tax system, and in no time at all it has the signatures required to become law.

Who can forget our very own Philip Hammond and his plan to go after every single self employed person in the UK. “MORE TAX,” is what he demanded, while slamming his fist down on the table and making everybody in the room cower in fear.

However, the brave men and women contractors did not cower away from Mr Hammond, and in fact, they stood firm and refused to back down to his outrageous demands for more tax.

In the end it was Philip Hammond who backed down and went back to his corner. He had no choice, although some predict he will try it on again in the near future.

My advice to Scottish contractors is to stand firm and let your voice be heard. Go to the streets of Glasgow, Edinburgh, Inverness and Fife if you have to, and demand that your taxes be lowered.

If that fails, then just make sure you get yourself the best contractor accountant in Scotland. Something which can be found right here at this website.

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