Scottish income tax rate 2016/17 announced on 16 December

Scottish income tax rate 2016/17 announced on 16 December

Tue 08 Dec 2015

The Scottish National Party will present its draft Budget at Holyrood on 16 December.

Scotland’s draft Budget was deferred from its usual time in September to allow the SNP Government to take account of Chancellor Osborne’s spending plans for the UK as a whole.

The Scottish rate of income tax (SRIT) will be the biggest announcement and has potentially the furthest-reaching consequences as it will affect the self-employed, employees and employers.

Liability to the SRIT is based on residency in Scotland, which means that if Scotland adopts a different income tax rate from the rest of the UK employers based anywhere in the UK may be affected by the need to deal with SRIT in their payrolls. HMRC has already announced the arrangements for:

·         changes to the PAYE coding system; and
·         notifying taxpayers of Scottish residency.

We will comment further when the SRIT is announced (or not).


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