Following on from the Budget on 11 March 2020, and the confirmation that the tax rates and thresholds for tax year 2020-21 remain unchanged for England, Wales and Northern Ireland from those in operation for 2019-20, HMRC has published the ‘Rates and thresholds for employers 2020 to 2021.’ Within the document, the Scottish thresholds also remain unchanged from the 2019 to 2020 values, but Scottish Parliament formally signed off the changes to Scottish taxation on 5 March 2020. As the thresholds have been agreed, we would have expected to see the new Scottish thresholds in place in the relevant section on the document.
HMRC’s Software Development Support Team (SDST) did confirm that they did not expect to see the new thresholds effective from 6 April 2020 but at a later date that would be confirmed in due course.
It is pleasing to see that the new Advisory Fuel Rates (AFRs) have been updated to include the most recently announced figures applicable from 1 March 2020, as the previous publication only included the figures applicable from 1 December 2019.
The CIPP and payroll professionals will be eager to hear when the new thresholds are intended to take effect from, and as soon as the CIPP has any further updates, we will update our members via News Online.
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HMRC confirms updated Scottish income tax thresholds will be operative from 11 May 2020 18 March 2020
Following on from the CIPP’s news article relating to the uncertainty surrounding the updated Scottish income tax thresholds for tax year 2020-21, and when they would become operative from, HMRC’s Software Developer Support Team (SDST) has confirmed that they will be required to be in place from 11 May 2020.
All HMRC educational tools, such as any guidance and related products will be updated to reflect the new thresholds from 11 May 2020.
The notice also reiterated the fact that the Employment Allowance is due to increase by £1,000, from £3,000 to £4,000 and that this would take effect from 6 April 2020.
The figures for use and their applicable dates are shown below:
Income Tax Rates – Scotland - 2019-20 rates to be used from 6 April :
Starter rate Basic rate
19% 20% 21% 41%
1 – 2,049
2,050 – 12,444 12,445 – 30,930 30,931 – 150,000
Intermediate rate
Higher rate
Top rate
46%
150,001 >
Income Tax Rates – Scotland - 2020-21 rates to be used from 11 May :
Starter rate Basic rate
19% 20% 21% 41% 46%
1 – 2,085
2,086 – 12,658 12,659 – 30,930 30,931 – 150,000
Intermediate rate
Higher rate
Top rate
150,001 >
Intermediaries
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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