Rules effective from April 2016 will see a radical change to income tax arrangements for Scottish taxpayers with the introduction of the Scottish rate of income tax (SRIT). This will result in an explosion of red tape as new reporting requirements for PAYE employers take effect.

The question is whether the added burden of PAYE administration makes any sense – if the Scots choose not to change the SRIT rate then why introduce such a complicated tax arrangement. There will not even be any transparency as the final individual allocations to SRIT will not appear on employees’ P60 forms at the year end, unless the government and HMRC change the current recommendations.

The idea is that anyone resident in Scotland will be defined as a Scottish taxpayer and will have to pay SRIT on income, but not on interest or dividend income. But the big tax powers for allowances, banding and income tax, remain at Westminster.