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Scottish rate of income tax: PAYE compliance pitfalls

With around 12 months to go until the new Scottish income tax system comes into force, there are a number of compliance issues for employers from PAYE definitions to residency questions for UK taxpayers, says Paul Tew

The UK PAYE system could be liable to a major change from 6 April 2016 when the Scottish parliament power to set a Scottish Rate of Income Tax (SRIT) on non-savings (employment and pension) income is expected to come into force.

However, the rates of income tax on income from savings and dividends will be the same for taxpayers across the UK, including Scottish taxpayers.

All other aspects of income tax remain reserved to the UK parliament including the setting of the personal allowance, ability to introduce and amend tax reliefs and the definition of income.

Scottish taxpayers

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