Jackie Hall, partner at RSM UK, on compliance with Scottish income tax, apprenticeship levy payment guidance, tax changes for non-UK domiciled employees
Complications over Scottish rate of income tax
The Scottish rate of income tax (SRIT) was introduced by the Scotland Act 2012. SRIT applies only to individuals and only to those who meet the tests to qualify as a Scottish taxpayer. This status is not dependent on national identity, working in Scotland or having an income source in Scotland.
Instead the definition of Scottish taxpayer is based on having a ‘close connection’ to Scotland and this is usually determined by an individual’s normal place of residence during the tax year.
In many cases this will be fairly obvious. There will, however, be instances where an individual has more than one residence. It will then be necessary to consider the length of time spent at each residence and in some cases day counting in each country may be required to establish whether or not the individual has a close connection with Scotland.
