Change to Scottish Higher Rate tax threshold announced 1 February 2018
Stage 1 of the Scottish Budget debate sees a 1% increase proposed to the Higher Rate threshold, moving from £44,273 to £43,430.
Finance Secretary Derek Mackay confirmed that, following publication of the Scottish Government’s tax proposals in December, he would take steps to remove an anomaly that meant some higher rate tax payers saw their bills fall while others on slightly lower incomes saw a rise, due in part to changes in the personal allowance. As a result, while 70% of taxpayers will continue to pay less in the next tax year than they currently do, 55% will pay less than they would elsewhere in the UK. All those earning above the new Higher Rate Threshold of £43,430, a 1% increase on the 2017-18 threshold, will see a modest increase in income tax. This distinct income tax policy will raise around £55 million and support an additional £420 million of investment in the Scottish budget.
Proposed rates and bands for 2018-19
Name
Income Bands
Rate
Starter Rate
£11,850* - £13,850
19%
Basic Rate
£13,851 – £24,000
20%
Intermediate Rate
£24,001 – £43,430
21%
Higher Rate
£43,431 – £150,000**
41%
Top Rate
Above £150,000**
46%
* Assumes individuals are in receipt of the standard UK personal allowance. ** Those earning more than £100,000 will see their personal allowance reduced by £1 for every £2 earned over £100,000.
For further information the Scottish Government has produced a Fact Sheet about the updated income tax proposals:
Back to Contents
The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 12 February 2018
From April 2019 employers will be required to include on payslips the number of hours worked by the employee for which they are being paid, but only in situations where the employee’s pay varies as a consequence of the time worked.
The Employment Rights Act 1996 (Itemised Pay Statement) (Amendment) Order 2018 was laid before parliament on 8 February 2018 and comes into force on 6 April 2019.
This instrument amends section 8 of the Employment Rights Act 1996 (c. 18), adding to the list of particulars which must be included in the itemised pay statement which an employee has a right to be given.
The amendment requires an itemised pay statement to also contain information regarding the number of hours worked by the employee for which they are being paid, but only in situations where the employee’s pay varies as a consequence of the time worked. The Amendment states:
“…where the amount of wages or salary varies by reference to time worked, the total number of hours worked in respect of the variable amount of wages or salary either as
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 402 of 598
Made with FlippingBook - Online magazine maker