The CIOT highlights ‘complexity and potential confusion’ for taxpayers in the new Scottish income tax rates and bands which took effect from 6 April, while the Scottish government welcomes a ‘progressive tax system’.
The CIOT highlights ‘complexity and potential confusion’ for taxpayers in the new Scottish income tax rates and bands which took effect from 6 April, while the Scottish government welcomes a ‘progressive tax system’.
Moira Kelly, Chair of the CIOT’s Scottish technical committee, said: ‘complexity was always going to be the price to pay for having control over parts of the income tax regime. While the differences next year may not be huge, they are noticeable and they expose Scottish taxpayers to increasing levels of complexity and potential confusion than ever before’.
In particular, Kelly referred to the misalignment between devolved income tax and UK-wide NICs resulting in a marginal rate of tax and NI equivalent to 53% on annual earnings between £43,430 and £46,350. This compares with a marginal rate of 43% for an employed Scottish taxpayer earning between £46,351 and £100,000.
Scottish finance secretary, Derek Mackay, chose instead to focus on: ‘this progressive approach to reforming income tax [which] will not only protect the lowest earning taxpayers, but ensure 70% of Scottish taxpayers pay less tax this year than last year for a given income, while the majority of Scottish taxpayers will pay less than if they lived elsewhere in the UK’.
The CIOT highlights ‘complexity and potential confusion’ for taxpayers in the new Scottish income tax rates and bands which took effect from 6 April, while the Scottish government welcomes a ‘progressive tax system’.
The CIOT highlights ‘complexity and potential confusion’ for taxpayers in the new Scottish income tax rates and bands which took effect from 6 April, while the Scottish government welcomes a ‘progressive tax system’.
Moira Kelly, Chair of the CIOT’s Scottish technical committee, said: ‘complexity was always going to be the price to pay for having control over parts of the income tax regime. While the differences next year may not be huge, they are noticeable and they expose Scottish taxpayers to increasing levels of complexity and potential confusion than ever before’.
In particular, Kelly referred to the misalignment between devolved income tax and UK-wide NICs resulting in a marginal rate of tax and NI equivalent to 53% on annual earnings between £43,430 and £46,350. This compares with a marginal rate of 43% for an employed Scottish taxpayer earning between £46,351 and £100,000.
Scottish finance secretary, Derek Mackay, chose instead to focus on: ‘this progressive approach to reforming income tax [which] will not only protect the lowest earning taxpayers, but ensure 70% of Scottish taxpayers pay less tax this year than last year for a given income, while the majority of Scottish taxpayers will pay less than if they lived elsewhere in the UK’.
