The Scottish Rate of Income Tax – what you need to know
The Scottish rate of income tax came into effect from 6 April 2016. The Scottish rate for 2016–2017 has been set at 10 percent, meaning 10p in every £1 will go to the Scottish Government.
What you need to know:
- Individuals and employers will have received annual coding notices, these will include the new ‘S’ code for Scottish taxpayers
- Employers need to make sure that they check with their provider that their payroll software is up to date and ready to apply the new ‘S’ code
- Employers must use the code in RTI supplied by HMRC
- Remember the ‘S’ code depends on the residential address of individuals
- Encourage your clients to tell HMRC if their address changes, as this will help HMRC to correctly identify any Scottish taxpayers and ensure they pay the right amount of tax
- All the updates and latest information can be found on the Scottish Rate of Income Tax news page