contractor accountants in Scotland

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.

Contractors in Scotland Pay More Tax

There are no doubt many contractor jobs north of the border in Scotland, but many contractors are getting taxed more than their English neighbours.

That’s because if you go south of the border then English contractors who are also taking advantage of the favourable contracting job market, well, a recent report shows that they pay less tax than Scots on the same income.

507,000 is the exact number of Scottish self employed workers who are paying more for the same amount of income, which includes many contractors and freelancers of course. “Just what is going on here?” many of them will be saying.

It was NAO, or The National Audit Office as some like to call it, who came up with the statistic of 507,000 Scottish self employed people who pay more tax, as they looked through the accounts of millions of contractors and freelancers on both sides of the border.

Rather than finding two countries united in perfect harmony, what they found is that exact opposite, and now many Scottish self employed are planning to take to the streets of Glasgow, Edinburgh, Fife, and Inverness in protest.

Thousands are expected to make their voices heard with chanting and homemade signs, but is it England that should be the target for this outburst of anger? Some experts are saying NO.

In fact, they should be looking a bit closer to home, towards SNP leader Nicola Sturgeon who has long been criticized for her attitude towards taxation.

When contractors in Scotland have shouted “less tax,” she comes back with “more tax” and when they try to compromise by shouting “the same amount of tax as the English,” she comes back with “more tax.”

Many pundits haver noted that these statistics come on the back of Mrs Sturgeon now having complete control over taxation within Scottish borders. It doesn’t look good for many contractors.

What is the solution though…should Scottish contractors move south of the border into the safe haven of England? That is one possibility, but if you ask me the most practical solution is to find a good accountant.

You will be glad to hear there are many contractor accountants in Scotland, who are there to look over your books and then get that tax bill more affordable.

They do all of this legally and above board of course, all within the confines of Scottish and UK law. It is their goal to serve you, and they do this by offering you experience, guidance, knowledge, and expertise that is second to none.

So what are you waiting for? Find a Scottish contractor accountant today, and join your English neighbours south of the border who are not paying as much tax.