In the latest February edition of the CIPP’s magazine an error has been identified in the article ‘2018/19 The Year Ahead’.
In the February 2018 )issue 37) the article entitled ‘2018/19 The Year Ahead’ has table of income and tax rates in the Scottish Income Tax section at the top of page 21. For the income bracket £44,274 - £150,000 the rate is 41%; however a rate of 14% was published in error.
Thank you to an ‘eagle eyed’ member for bringing this to our attention.
The interactive version of the magazine on the CIPP website has been updated to show the correct rate:
Gross Income (£)
Income tax rate
£11,850 - £13,850
19%
£13,851 – £24,000
20%
£24,001 – £43,430 *
21%
41%
£43,431 – £150,000
Above £150,000
46%
The hard copy version of our magazine had already gone to print and distribution has begun so it shows the incorrect rate of 14%. The CIPP apologises for any confusion this may cause.
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Delayed issue of P6 coding notices 1 February 2018
HMRC has paused the issue of P6 coding notices to allow urgent investigation and resolution of an issue.
This message was published on the Pay As You Earn (PAYE): service availability and issues page on GOV.UK.
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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%
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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