The Scottish Rate of Income Tax

Retired_at_55

I've received a letter about tax from 2016. It sounds as if Scottish Income Tax is changing and I wonder if this means an increase in income tax for Scottish tax payers - ? more than the standard UK rate of 20% at present.

Does anyone know the details about this and what the proposed new tax code beginning with 'S' is likely to mean?

Thanks.

Retired at 55

Darksparkle

Rates are expected to be announced tomorrow.

The S will just identify you as a Scottish tax payer so any employer/pension provider can use the appropriate rate.

Retired_at_55

Darksparkle wrote: »

Rates are expected to be announced tomorrow.

The S will just identify you as a Scottish tax payer so any employer/pension provider can use the appropriate rate.

Thanks Darksparkle. I hope I'm not being overly pessimistic but I can only think that this will eventually mean increased income tax - I hope I'm wrong.

Retired at 55

Darksparkle

Retired_at_55 wrote: »

Thanks Darksparkle. I hope I'm not being overly pessimistic but I can only think that this will eventually mean increased income tax - I hope I'm wrong.

Retired at 55

No idea to be honest. Some people I've spoke to think it will be more, some less, some don't think it will change yet.

jem16

Retired_at_55 wrote: »

I hope I'm not being overly pessimistic but I can only think that this will eventually mean increased income tax - I hope I'm wrong.

My feeling is that the SNP will not set a rate that will increase tax for Scottish taxpayers over the rest of the UK as it will decrease support for the SNP and Independence.

I can see it setting a rate which will be exactly equal to the UK rate ( ie 10p UK rate and 10p Scottish rate for the 20% tax band ) and saying that their hands are tied as the more tax they raise, the less the block grant will be.

The Scottish Government have been able to vary the rate of tax for years now and have never done so whilst citing the above.

Darksparkle

No change.

CLAPTON

SNP have fought for the right to set their own independent rate the same as the rest of the UK

jem16

Darksparkle wrote: »

No change.

Of course there isn't. It was never going to happen and with the usual excuses.