Your browser does not support JavaScript so our full site may not load correctly! Hodson & Co - Latest News

Hodson & Co - Our Latest Financial News

Reminder for Scottish taxpayers to check their payslips
11/05/2016

The Low Income Tax Reform Group (LITRG) has issued a press release reminding Scottish taxpayers to check their payslips for 2016-17. Scottish taxpayers should check their PAYE code has the prefix 'S' (for Scottish), for example, a Scottish taxpayer's tax code for 2016-17 could be S1100L.

The LITRG is advising Scottish taxpayers who think there is an error with their PAYE code to contact HMRC. It is up to HMRC to correct a taxpayer's tax code (an employer or pension payer is not allowed to change a tax code without an instruction from HMRC). Taxpayers that live in Scotland should also ensure that HMRC has their correct address.

HMRC’s guidance states that for the vast majority of individuals, the question of whether or not they are defined as a Scottish taxpayer will be a simple one – they will either live in Scotland and thus be a Scottish taxpayer or live elsewhere in the UK and not be a Scottish taxpayer.

Since the start of the 2016-17 tax year, the UK Income Tax rates applied in Scotland have been reduced by ten percentage points (from 20% to 10%) and the Scottish Parliament has the power to set the Scottish rate at the same, lower or higher rate than the rest of the UK. The Scottish government set the Scottish rate at 10% for the tax year 2016-17. As the rate is set at 10%, Scottish tax payers will pay the same composite rates as the rest of the UK for the current tax year.


 

Latest news

Search archive


Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter 
» Login