CIPP comment The Policy Team will be reviewing this document and if deemed applicable, will issue a survey shortly to gather members’ views.
Scottish Rate of Income Tax will not need to be shown on P60 12 June 2015
The CIPP are very pleased to share the news from HMRC that there will no longer be a requirement from 2016 to include the Scottish Rate of Income Tax rate separately on the P60.
HMRC previously asked that from April 2016 the P60s would need to separately show the Scottish Rate of Income Tax proportion on the ‘In This Employment’ section.
Over the last few months HMRC and the Scottish Government have consulted with Employers and Software Developers on how best to implement these changes. They have listened to the concerns and issues raised about the complexity of making this change especially given the potential for further changes to accommodate the extended income tax powers contained within the current Scotland Bill . Therefore, the decision was taken by the Scottish Government to no longer mandate the inclusion of SRIT separately on the P60 from April 2016.
However, the P60 should still show a Scottish Tax Code, where appropriate.
HMRC will show the Scottish Rate proportion separately on the individual’s Annual Tax Summary for the 2016/17 tax year onwards.
While there is no requirement to include the Scottish Rate amount separately on payslips, HMRC will continue working with employers on how best to ensure employees have visibility and understanding of the Scottish rate of Income Tax.
CIPP comment The CIPP Policy Team has been a member of all the various consultation forums that have transpired since the Commission on Scottish Devolution first began work in April 2008. In particular Karen Thomson and Samantha Mann were heavily involved in the lobbying against the requirement to show the Scottish rate of Income Tax on the P60.
Karen commented:
“We are delighted that this requirement has been overturned, it is one less administrative burden for payroll professionals to deal with. We would like to thank all those who contributed to the various surveys and discussions on this subject as without your input, our pleas for change have little substance. It is these types of turnarounds from government that prove just how invaluable member collaboration and the CIPP’s engagement with government departments are.”
Power to avoid election date clash devolved to Scottish Parliament 16 June 2015
The Government has fast tracked the Scottish Parliament’s ability to set the 2020 election date as they had been scheduled to take place on the same date as the UK elections.
As a result of the Fixed-term Parliaments Act 2011, elections to both the UK and Scottish Parliaments had been scheduled to take place on the same day in 2020.
The change will allow the Scottish Parliament to introduce and pass legislation to avoid this happening. Holyrood will be able to set a date which avoids holding the poll on the same day as UK Parliament, European Parliament or local government elections.
The move is consistent with the Smith Commission’s recommendation that power over Scottish elections should be devolved to the Scottish Parliament.
CIPP Policy News Journal
25/04/2016, Page 403 of 453
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