Working in England (PAYE employee), living in Scotland - implications?

Hello

We are thinking about a move to Scotland.  I work from home full time for a company in England and pay income tax under the PAYE regime. 

I could ask my employer outright, but as we're far from certain about the move, I thought I'd gather some information first.

Please does anyone know if the employer can/is likely to object for any reason?  I wonder if they would have to use a different Scottish system of PAYE/NI which might be onerous for only one employee? Any other potential issues? 

Would the PAYE tax be the same amount as we're paying currently?

Might there also be any data security objections re using the company's servers remotely from a different location (I think they have said no one can work from abroad).

Any thoughts/advice very welcome.

Many thx in advance

Comments

  • Scottish residents have different tax rates compared to Wales and the rest of the UK.

    Employers will often have people from different (UK) countries on their payroll so that should be be unusual.  

    They will know where you are resident for tax purposes by your tax code.  Scottish residents have an S prefix i.e. S1257L.

    Welsh residents have a C prefix.

    You may well pay more tax, depends on your income.
  • SiliconChip
    SiliconChip Posts: 1,775 Forumite
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    Scotland isn't abroad so there are no data security implications. Unless your employer is a very small or very old fashioned one they will almost certainly use PAYE software that will allow for Scottish tax codes. I did the opposite to you, working for a Scottish employer from England, and had absolutely no issues of the type you have concerns about (and having retired I now get one of my pensions paid from a Scottish provider again with no issues).
  • ElefantEd
    ElefantEd Posts: 1,221 Forumite
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    I live in Scotland and work (occasionally) for a company based in England, and also (occasionally) for a Scottish organisation, as well as being self employed. Never had any issues.
  • Thanks very much for the helpful replies, really appreciated.
  • Eldi_Dos
    Eldi_Dos Posts: 2,109 Forumite
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    Not directly linked to your query but lots of outlying areas are coming onstream with FTTP around here now.Worth factoring in when looking into a place to move to.
  • SiliconChip
    SiliconChip Posts: 1,775 Forumite
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    Eldi_Dos said:
    Not directly linked to your query but lots of outlying areas are coming onstream with FTTP around here now.Worth factoring in when looking into a place to move to.

    Without knowing where "here" is I'm not sure it's worth anything!
  • molerat
    molerat Posts: 34,290 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 11 December 2023 at 1:47PM
    Please does anyone know if the employer can/is likely to object for any reason?  I wonder if they would have to use a different Scottish system of PAYE/NI which might be onerous for only one employee? Any other potential issues?

    Once HMRC are aware your home address is in Scotland they will issue a S prefix code.  The employer will simply enter that code into their payroll software and it will react accordingly.  I can't see there being any England only payroll software.

    Would the PAYE tax be the same amount as we're paying currently?
    The break even point is around £27870, above that you will pay more tax in Scotland, below less.  Also if living in a property band E or above you pay a higher proportion in council tax with a further increase to come.

  • Eldi_Dos
    Eldi_Dos Posts: 2,109 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    Eldi_Dos said:
    Not directly linked to your query but lots of outlying areas are coming onstream with FTTP around here now.Worth factoring in when looking into a place to move to.

    Without knowing where "here" is I'm not sure it's worth anything!
    Thanks for sharing the wisdom,round here it is received with due appreciation.
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