Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

Opinion: Smith versus Fergusson – the battle of the Scotsmen?

Market news
Legal news

What is the difference between Murray Smith, our Sales and Marketing Director based in Leicester, and Alan Fergusson our Employee Benefits Director based in Aberdeen?

Well, they are both Scottish, and both work for Mattioli Woods, both travel the country, and they are both very good at what they do for our clients. However, from April 2016, Alan will be subject to Scottish income tax.

The Scottish rate of income tax was introduced in Scotland in 2012, and the Scottish Government has proposed that the Scottish rate will be 10% for the tax year 2016 to 2017. UK income tax rates will be reduced by 10% for people living in Scotland.

They will then pay the Scottish rate of 10% on top of their UK rate. For example, if someone was subject to basic rate tax of 20%, this will reduce to 10%, and they will then pay a Scottish rate of 10% on top of this, giving a total of 20%.

There will be no overall changes to the total amount of income tax rate that is paid, but some of the tax collected under the Scottish rate will fund the Scottish Government and the rest will fund the UK Government.

The Scottish rate of income tax does not apply to income from savings such as Building Society interest, or income from dividends. This rate will stay the same for all taxpayers across the UK.

H M Revenue & Customs will continue to collect the Scottish rate of income tax on behalf of the Scottish Government. National Insurance contributions will be unaffected by the introduction of the Scottish rate of income tax.

It is not where an individual was born, or where they work, it is where they live which decides whether or not they are a Scottish taxpayer. If you live in one place during a tax year and it is in Scotland, you will be a Scottish taxpayer.

If you live anywhere else, you will not be.

You can only be a Scottish taxpayer if you are resident in the UK for tax purposes. If the address H M Revenue & Customs holds for an individual is in Scotland, they will have already been sent a letter to check their address is correct.

It is the individual’s responsibility, not the employer’s, to notify H M Revenue & Customs if they change their address, and from April 2016 affected individuals’ tax codes will begin with the letter S to show they are a Scottish taxpayer.

Therefore, just as a member of a pension scheme has a responsibility to notify the pension scheme of a change of address, individuals need to be aware that they have a legal responsibility to tell H M Revenue & Customs if they change address in order to ensure they receive the correct tax code, and pay tax to the right country!

Karena Woodall is a consultant with Mattioli Woods

Recommended for you

More from Energy Voice

Latest Posts