The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Income tax powers for Wales agreed 23 December 2016
From April 2019 Wales will take on income tax powers.
In a milestone agreement between the UK and Welsh governments, Wales will take control of 10p in each band of income tax collected within its borders.
The block grant that Wales receives from the Treasury on an annual basis will be reduced accordingly.
The new fiscal framework was negotiated by Chief Secretary to the Treasury, David Gauke and Welsh Finance Minister, Mark Drakeford,
Two Tax Bills were also i ntroduced in July 2016 to establish the two taxes to be devolved to Wales in April 2018; a land transaction tax, which will replace the current stamp duty land tax (SDLT), and a landfill disposals tax for Wales, which will replace the current landfill tax. The Tax Collection and Management Act was passed by the National Assembly in April 2016 which provides the Welsh Government with the powers to collect and manage their own taxes. The Welsh Revenue Authority is being established to do this and will be operational by 2018.
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Address records remain a challenge for the Scottish Rate of Income Tax 23 December 2016
A National Audit Office report says the key challenge to HMRC’s delivery of the Scottish Rate of Income Tax is maintaining and updating its record of address details in order to identify Scottish taxpayers
NAO report says HMRC face significant challenges in administering SRIT, particularly when tax rates and thresholds differ between Scotland and the rest of the UK.
The report highlights that it is crucial that it maintains accurate address information for Scottish taxpayers, and ensures that the potential for tax avoidance and evasion is mitigated. HMRC also needs to be able to report the actual amount of SRIT collected to the Scottish Government, and provide an IT solution that allows private pension providers to claim relief at source. Amyas Morse, head of the National Audit Office said that the NAO has warned that divergence in tax rates between Scotland and the rest of the UK “introduces the risk of tax avoidance and evasion”. From April, Scots will pay the 40p rate of tax at £43,430, even though it will rise to £45,000 in England and Wales. HMRC has already drawn up plans to tackle the risk among those who should be paying the Scottish rate of income tax (SRIT), but the NAO said HMRC faces significant challenges in identifying workers north of the Border and collecting the correct amounts due. The NAO report also reveals an IT error meant HMRC had failed to inform 420,000 individuals of their new tax status in 2015, ahead of new tax-raising powers being transferred to Holyrood. They eventually received their new “S” tax code three months after it came into force last April.
Read the full report from the NAO: The administration of the Scottish Rate of Income Tax 2015-16 .
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Widening Access Training scheme 3 January 2016
Find out how to refund Income Tax and National Insurance contributions to workers who attended an NHS Widening Access Training course.
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