HMRC will operate the tax collection process under the current PAYE system, but has had problems with the IT system in the last few weeks, which were only resolved on 15 March, which meant that employers have had to reload their data through payroll software in order to meet compliance requirements for the annual coding run when preparing code 9 notices for the new tax year, 2016/17.

Scottish taxpayers will not pay an increased amount of income tax next year. SRIT has been set at 10p, which means the tax paid by Scottish residents in 2016/17 will be the same as those taxpayers in the rest of the UK. The rate was announced on 11 February 2016.

HRMC also wrote to all Scottish resident taxpayers before Christmas alerting them to the changes although even HMRC has admitted that there has been low awareness of the upcoming tax changes in Scotland.

The Scottish government does not have the power to vary SRIT by band as it can only change the rate by a fixed sum across all rates, ie, if it were to increase the higher rate of tax paid, this would mean a rise in the base rate of income tax. It can only be applied equally to all tax bands, which means that any change to the rate would affect all basic, higher and additional taxpayers.

However, from 2017-18 new powers coming into force mean that the Scottish government will have the scope to alter rates in a more flexible manner.

SRIT is the last of three tax powers devolved to the Scottish parliament under the Scotland Act 2012 following the stamp duty equivailent, the land and buildings transaction tax (LBTT)  and the Scottish landfill tax.

Deputy first minister John Swinney said: ‘The income tax powers we currently have do not allow us to make income tax fairer, and I am not prepared to inflict an additional burden on the poorest taxpayers.

‘Taxes should be proportionate to the ability to pay. Where we have the freedom to shape a taxation system that is fair and proportionate to the ability to pay, we have created a tax system, through the land and buildings transactions tax (LBTT) that is progressive and helps those who most need it.

‘A rate of 10 pence for Scottish rate of income tax protects those on the lowest taxable incomes and ensures Scottish taxpayers are not penalised as we introduce this historic new tax regime.

Essential reading on SRIT

To find out how to comply with the new S code, read SRIT: tips and advice on income tax changes for Scottish taxpayers

More information on the Scottish rate of income tax is available from Scottish government