Stephanie Webber, tax writer at Croner-i, assesses the issues to consider when dealing with the tax status of Scottish and Welsh taxpayers, including residency requirements
With effect from 2016-17 and 2019-20 respectively, the Scottish parliament and Welsh assembly have had the power to set income tax rates on non-savings and non-dividend income, although Scottish rates only diverged from the rates applicable in the rest of the UK from 2018–19 and Welsh rates are still in line with the rest of the UK (except Scotland).
For the majority of taxpayers, Scottish or Welsh taxpayer status will be straightforward to determine – it will simply depend on where they live.
For PAYE taxpayers, HMRC makes the initial decision based on the individual’s address and allocates a prefix letter ‘S’ for Scottish taxpayers and ‘C’ for Welsh taxpayers, but this can be appealed if the taxpayer believes it is incorrect.
For sel
