any adjustment (based on the rate set by the Scottish Government) to the relief given directly with the scheme member. Adjustments will then be made by HMRC through the Self-Assessment process or through PAYE coding.
Your views please on the technical guidance on Scottish taxpayer status 26 June 2015
The Scotland Act 2012 inserts new sections 80D – 80F in to the Scotland Act 1998 that define who will be a Scottish taxpayer when considering the Scottish rate of income tax.
11 June 2015 saw the publication of draft technical guidance by HMRC which is available for review and comment. The deadline for submitting comments is 31 July 2015.
The guidance includes definition of a Scottish Tax payer which, as you might imagine, focuses extensively on an employee’s residence as it is where an employee lives that is key to establishing whether they will be a Scottish tax payer.
“An individual will be a Scottish taxpayer if they’re resident in the UK for tax purposes and, in the course of a tax year, they satisfy any of three tests:
they’re a Scottish Parliamentarian they have a “close connection” to Scotland, through either:
o having only a single “place of residence”, which is in Scotland o where they have more than one “place of residence”, having their “main place of residence” in Scotland for at least as much of the tax year as it has been in another part of the UK where no “close connection” to Scotland (or any other part of the UK) exists - through day counting - if the individual spends at least as many days in Scotland as elsewhere in the UK” The CIPP Policy & Research Team will be submitting comments on the draft technical guidance but we would welcome your comments also as to whether you feel that this guidance fulfils its objectives in providing technical guidance that will clarify and assist understanding and decision making for how tax status will be established for a Scottish tax payer.
This guidance is aimed at the professional and adviser rather than employee, guidance aimed at helping individuals will be issued later in the year.
If you have comments that you wish to include or make us aware of, please send them for the attention of Samantha Mann, Senior Policy & Research Officer at policy . The deadline for comments is Friday 24 July 2015. Thank you.
Scottish Rate of Income Tax calculations 16 July 2015
HMRC’s Software Developers Support Team has provided some useful test cases and guidance for Scottish Rate of Income Tax (SRIT) calculations.
You can access the calculations through the link below. Any questions should be directed to SDSTeam@hmrc.gsi.gov.uk .
Scottish Rate of Income Tax calculations
CIPP webcast on the Scottish Rate of Income Tax 30 July 2015
The CIPP Policy Team has produced a short webcast which provides an overview of the Scottish Rate of Income Tax which is due to come into force on 6 April 2016.
The webcast is 15 minutes long and provides an overview of what we know so far and also includes some example scenarios which look at Scottish taxpayer status.
CIPP Policy News Journal
25/04/2016, Page 405 of 453
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