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For those of us with Scottish clients...

Scottish tax rates

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I'm based in Northumberland so have a couple of clients north of the border.

Some interesting calculations will need to be computed going forward....not sure the £8060 Aweb in joke is going to wash anymore (not that it always was anyway).

Scottish Budget

New Income Tax rates

21p

New intermediate tax rate from £24,001 to £44,273

19p Starter rate from £11,850 to £13,850

20p Basic rate from £13,851 to £24,000

41p Higher rate from £44,274 to £150,000

46p Additional rate from £150,000

And of course Savings / dividend thresholds are UK based not Scottish so add that into the mix.

Anyone think HMRC systems will be able to cope with this?

Replies (31)

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By Duggimon
14th Dec 2017 16:18

I'm fairly sure that the savings and dividend rates, not just the thresholds, are set by Westminster, what a joyous cornucopia of potential tax rates, thresholds and interactions.

Suppose it keeps us in a job at least, nobody will be working out their tax on the back of a beer mat again.

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By ireallyshouldknowthisbut
14th Dec 2017 16:37

*sigh* we have a few clients north of the border, including two who normally live in the south, but are working in Scotland temporarily.

I dont know what hey have to make it so hard and put in new bands for what amounts to £20 a YEAR for those earning under £24000. I mean, who gives a stuff!

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By Ruddles
14th Dec 2017 16:50

What a pile of nonsense. A new starter rate that will save someone £20 a year. And the arrogance that they believe that people are so thick as to believe that replacing two-thirds of the basic rate band with a new, higher rate, band is not an increase in the basic rate of tax - and therefore a blatant breach of the manifesto pledge (in that same manifesto that Wee Jimmy bangs on about as giving her an absolute right to call a second referendum). Hypocrisy from a politician? Surely not.

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Replying to Ruddles:
By Duggimon
15th Dec 2017 12:40

To be fair the manifesto never said they wouldn't raise basic rate tax, just that they hadn't done so in this year, which I always took to mean they definitely would in the near future.

It's a total joke though, introducing masses of complexity for SFA difference in revenue.

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Replying to Duggimon:
By Ruddles
15th Dec 2017 15:30

"We will ... freeze the basic rate of Income
Tax"

Seems pretty clear to me.

As does

"We will freeze the Basic Rate of Income Tax for the duration of the next parliament"

Whilst they may have stuck to the letter of the manifesto they have completely disregarded the spirit of it.

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RLI
By lionofludesch
14th Dec 2017 16:53

Revenue Scotland will deal with all this.

All difficulties will be a thing of the past.

£20 is a lot of money to a Scotsman. It's nearly eight bob a week.

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Hallerud at Easter
By DJKL
14th Dec 2017 17:12

I am DJKL, I seek asylum south of the border.

To think I previously believed the Westminster lot were worse than our lot, however in tried and tested SNP fashion, J'accuse you southerners of infecting our politicians, it must be all your fault as apparently everything that is wrong up here stems from Westminster; I blame you for giving us these tax varying powers

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Replying to DJKL:
RLI
By lionofludesch
14th Dec 2017 17:46

DJKL wrote:

I am DJKL, I seek asylum south of the border.

What - Mexico ??

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Replying to lionofludesch:
Hallerud at Easter
By DJKL
14th Dec 2017 19:25

If I go there apparently I have to pay for a wall.

I was more really thinking of going far south to say Northumbria, it is a helpful place where the police spend all their time updating road signs telling the driver how many people died on the road that takes one there.

As a bonus it is also nearer to the Stadium of Light.

I am now just awaiting the software companies announcing that the Scottish version of their tax return software will have a premium added to the price per return; for some reason £20 is the sum circulating in my head.

Apparently we raise circa £115m from all this, if I heard the news right, or to be more exact in the Scottish vernacular, a 1/4 parliament or a 1/6th of a tram.

Thanks (1)
Replying to DJKL:
RedFive
By RedFive
14th Dec 2017 17:52

Was it you who said the SNP speak like labour but act like Tories or am I misquoting you?

It frustrates me how politicians of all colours treat the electorate like muppets.

While I appreciate the recent thread about confusing concepts to our blessed clients in my opinion the general public is not all that stupid.

Other than the Brexiteers of course.
They are all stupid.

;-)

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Replying to RedFive:
RLI
By lionofludesch
15th Dec 2017 09:23

It's interesting that politicians have such a misplaced confidence in voters over such issues as Brexit and increasing their majority with snap mid-term elections.

In contrast, the electorate have no confidence in politicians and vote - if they vote at all - for the least bad option.

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By Accountant A
14th Dec 2017 17:28

Costing business millions to get a few headlines. Just like the Westminster government. Shocking nonsense.

Will the Scottish government be compensating non-Scottish businesses affected? Thought not.

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By sosleepy
15th Dec 2017 09:26

And next year the Welsh Government gets to set tax rates too.

Edit: Not next year. It's actually April 2019.

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By Glenn Martin
15th Dec 2017 09:40

After seeing how Jon Snow in Game of Thrones faired when he went North of the Wall, I decided it was not a good endeavour to do so, so only have 2 clients in Edinburgh, and tend to end my conquest North at around Wooler.

Why anyone would wish to be nearer to the Stadium of lIght defies logic.

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Replying to Glennzy:
avatar
By KevinMcC
15th Dec 2017 11:15

Quite an apt analogy.

The SNP = White Walkers - strange creatures with an unexplained dislike of the southerners, hell bent in turning the wildlings into mindless zombies who'll follow them into their battle against the south...

Just have some sympathy for those of us stuck north of the wall that'll have to deal with all these crazy tax rates.

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Replying to KevinMcC:
RLI
By lionofludesch
15th Dec 2017 12:17

KevinMcC wrote:

Just have some sympathy for those of us stuck north of the wall that'll have to deal with all these crazy tax rates.

Five tax rates ?

Just remind me how many tax bands there were in the 1970s ..........

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Replying to lionofludesch:
Caroline
By accountantccole
15th Dec 2017 12:47

Showing your age..........I was in school.

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Replying to accountantccole:
By Marion Hayes
15th Dec 2017 14:00

ssshhhhhh!!
Total tax payable could even come to over 100%.
Bet you didn't learn that in school

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Replying to Marion Hayes:
RLI
By lionofludesch
15th Dec 2017 14:06

It still can.

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Replying to lionofludesch:
avatar
By KevinMcC
18th Dec 2017 09:40

As far as I'm concerned the 1970s never existed - the world began in 1990...

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Replying to KevinMcC:
By Ruddles
15th Dec 2017 14:10

KevinMcC wrote:
The SNP = White Walkers

I can think of two spelling changes that would more accurately reflect what I think of the SNP and their behaviour.

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Replying to Glennzy:
Hallerud at Easter
By DJKL
15th Dec 2017 14:24

Winter is coming.

R SoL, given the team's track record living nearer would mean less time driving home to Edinburgh morose and despondent (Though with daughter working at weekends these days it has been tricky to get down this season, but I am told the Middlesbrough game is starting to look a likely candidate)

And whilst Hibs are now back up we have become used to supporting second tier clubs (though our Sunderland support started last time they were down)

Besides, if you are used to a team whose name has now become linked with a behaviour , " To Hibs It" it is certainly worth driving 3 odd hours to watch a similar team; they are kindred teams connected by light/sunshine, albeit often scarce at both locations.

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Replying to DJKL:
By Glenn Martin
15th Dec 2017 15:05

You would be better off stopping at St James Park, big announcement to be made any time now, Mike Ashley away and big money investment could bring back a time like the Keegan and Bobby Robson era.

Lionel Messi has been seen looking at house in Gateshead.

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Replying to Glennzy:
RLI
By lionofludesch
15th Dec 2017 15:17

You'd be even better going on a week day and watching the grass grow.

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Replying to lionofludesch:
Hallerud at Easter
By DJKL
15th Dec 2017 21:07

Probably moves faster than Lee.

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Replying to Glennzy:
Hallerud at Easter
By DJKL
15th Dec 2017 21:05

You are surely getting Craig Whyte, the Ashley- Ibrox connection.

Having said that I did once see a great performance at St James' Park, back in the early 80s-The Rolling Stones.

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By Paul D Utherone
15th Dec 2017 13:43

Could have been worse...there was talk of up to 6 tax bands in the consultation IIRC.

It is going to make tax reserve modelling for partnerships with partners either side of the border even more of a 'mare than it already is. I fear the update of my current model may break Excel

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By Martin B
15th Dec 2017 16:17

No university fees in scotland.

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Replying to Martin B:
By Glenn Martin
15th Dec 2017 16:26

Free care home fees as well if I remember correctly.

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Replying to Glennzy:
Hallerud at Easter
By DJKL
15th Dec 2017 21:11

Not totally free, there are assessed / contributory elements.

http://www.careinfoscotland.co.uk/topics/care-homes/paying-care-home-fees/

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By itp3asso
18th Dec 2017 15:45

Er........................ no.

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