Scottish variable rate tax – back on the agenda?
Amongst the Bills announced yesterday in the Queen’s Speech was a Scotland Bill. Its aims as announced are:
- Strengthening the devolution settlement in Scotland.
- Increasing the financial accountability of the Scottish Parliament.
- Renewing the policy responsibility split between the UK and Scottish Parliament.
- Improving the relationship between the UK Government and Scottish Ministers
This may well see the Scottish parliament given further revenue raising powers and could see the subject of the Scottish variable rate of tax back on the agenda. For those employers with nationwide workforces this will be a big issue. It will also impact the software developers too as we will see tax codes prefixed with an ‘S’ to indicate that the individual is classed as a scottish taxpayer. Originally, this was proposed to be determined by days of residence in Scotland in a tax year.
I think it’s time to revisit my old discussions with HM Revenue & Customs on Scottish tax and also how the other recommendations of the Calman Commission, that this Bill is intending to implement, would impact on employers. Watch this space for an article that brings you up to speed
