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  • FIRST POST
    • MSE Megan F
    • By MSE Megan F 15th Dec 17, 1:28 PM
    • 405Posts
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    MSE Megan F
    MSE News: Scottish income tax shake-up - how what you pay will change
    • #1
    • 15th Dec 17, 1:28 PM
    MSE News: Scottish income tax shake-up - how what you pay will change 15th Dec 17 at 1:28 PM
    The Scottish Government has announced changes to income tax bands which could see some middle earners pay more tax from next April...
    Read the full story:
    'Scottish income tax shake-up - how what you pay will change'

    Click reply below to discuss. If you havenít already, join the forum to reply.
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Page 1
    • One-Eye
    • By One-Eye 15th Dec 17, 2:04 PM
    • 48,445 Posts
    • 7,409,734 Thanks
    One-Eye
    • #2
    • 15th Dec 17, 2:04 PM
    • #2
    • 15th Dec 17, 2:04 PM
    no-one earning less than £33,000 will pay any more in tax than they do now
    Although mathematically true it relies on fiscal drag. It is misleading and ignores the effect of increasing the personal allowance to £11850 in the rest of the UK. A more realistic statement is:

    "Everyone earning over £26,000 will pay more tax than they would in England"

    Doesn't sound so good does it.
    • One-Eye
    • By One-Eye 15th Dec 17, 2:43 PM
    • 48,445 Posts
    • 7,409,734 Thanks
    One-Eye
    • #3
    • 15th Dec 17, 2:43 PM
    • #3
    • 15th Dec 17, 2:43 PM
    Table showing effect of the proposals

    SALARY....... TAX .......... TAX ............ TAX
    .......... UK 17/18 ... Scotland 18/19 ... England 18/19
    15000 ....... 700 .......... 610 ............ 630
    20000 ...... 1700 ......... 1610 ........... 1630
    26000 ...... 2900 ......... 2830 ........... 2830
    30000 ...... 3700 ......... 3670 ........... 3630
    33000 ...... 4300 ......... 4300 ........... 4230
    40000 ...... 5700 ......... 5770 ........... 5630
    • VT82
    • By VT82 15th Dec 17, 3:20 PM
    • 1,052 Posts
    • 896 Thanks
    VT82
    • #4
    • 15th Dec 17, 3:20 PM
    • #4
    • 15th Dec 17, 3:20 PM
    The tiny 19% band is a waste of time, and has purely been put in so they can fudge the numbers this time round.

    The fact that they increased the higher rate from 45% to 46%, nowhere near even the 50% it was under the last Labour government, shows that despite showing all the signs of being fervently left-wing, even the SNP realise that the politics of envy against the well off is stupid when it comes to the crunch. I hope Labour take note.
    • Allan frae Fife
    • By Allan frae Fife 15th Dec 17, 6:55 PM
    • 3 Posts
    • 3 Thanks
    Allan frae Fife
    • #5
    • 15th Dec 17, 6:55 PM
    • #5
    • 15th Dec 17, 6:55 PM
    like most things in life, there is cost and there is value
    • veryintrigued
    • By veryintrigued 15th Dec 17, 8:44 PM
    • 2,827 Posts
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    veryintrigued
    • #6
    • 15th Dec 17, 8:44 PM
    • #6
    • 15th Dec 17, 8:44 PM
    Is the rest of the UK saddled with the cost of ensuring the HMRCs systems can cope with this change?
    • Heng Leng
    • By Heng Leng 15th Dec 17, 9:41 PM
    • 4,935 Posts
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    Heng Leng
    • #7
    • 15th Dec 17, 9:41 PM
    • #7
    • 15th Dec 17, 9:41 PM
    Is the rest of the UK saddled with the cost of ensuring the HMRCs systems can cope with this change?
    Originally posted by veryintrigued
    Is Scotland saddled with the cost of weapons of mass destruction and the Little Englander Brexit ?
    • veryintrigued
    • By veryintrigued 15th Dec 17, 10:14 PM
    • 2,827 Posts
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    veryintrigued
    • #8
    • 15th Dec 17, 10:14 PM
    • #8
    • 15th Dec 17, 10:14 PM
    Is Scotland saddled with the cost of weapons of mass destruction and the Little Englander Brexit ?
    Originally posted by Heng Leng
    Am guessing that's a yes to my original question.
    • Dazed and confused
    • By Dazed and confused 15th Dec 17, 11:10 PM
    • 5,606 Posts
    • 2,983 Thanks
    Dazed and confused
    • #9
    • 15th Dec 17, 11:10 PM
    • #9
    • 15th Dec 17, 11:10 PM
    According to the national audit office the Scottish government pays. Guess the bill for 2018:19 might go up a little given how complicated they're intending to make it

    https://www.nao.org.uk/press-release/scottish-rate-of-income-tax-2016-17/
    Last edited by Dazed and confused; 15-12-2017 at 11:12 PM.
    • Allan frae Fife
    • By Allan frae Fife 15th Dec 17, 11:14 PM
    • 3 Posts
    • 3 Thanks
    Allan frae Fife
    My understanding is that the Scottish Government has been/ continues to be responsible for both the cost of HMRC IT changes and additional administration costs relating to the SRIT.


    I'm not sure whether the Welsh Assembly will have similar responsibilities in respect of the WRIT
    • Dazed and confused
    • By Dazed and confused 15th Dec 17, 11:18 PM
    • 5,606 Posts
    • 2,983 Thanks
    Dazed and confused
    Well Scotland better start saving up now for the 2018:19 bill!!
    • kidmugsy
    • By kidmugsy 15th Dec 17, 11:54 PM
    • 12,480 Posts
    • 8,856 Thanks
    kidmugsy
    "Everyone earning over £26,000 will pay more tax than they would in England".
    Originally posted by One-Eye
    No doubt it serves 'em right for being capitalist fascist Tory scum. Is that how the SNP phrases it?
    Free the dunston one next time too.
    • Wayne O Mac
    • By Wayne O Mac 16th Dec 17, 11:30 AM
    • 230 Posts
    • 272 Thanks
    Wayne O Mac
    "Everyone earning over £26,000 will pay more tax than they would in England"

    Doesn't sound so good does it.
    Originally posted by One-Eye
    I'm happy to pay more in tax for better public services.

    The poor pay less, the rich pay more. It sounds fine.
    • BoGoF
    • By BoGoF 16th Dec 17, 11:53 AM
    • 5,541 Posts
    • 5,539 Thanks
    BoGoF
    Saw an article this morning but not sure how accurate it is - states that where person is liable at 21% then would no longer to be able to transfer part of personal allowance where there is a non working spouse. You can only do this where recipient is basic rate taxpayer (20%).
    • Dazed and confused
    • By Dazed and confused 16th Dec 17, 12:10 PM
    • 5,606 Posts
    • 2,983 Thanks
    Dazed and confused
    BoGoF

    The CIOT website has an article pointing out that people paying the new "intermediate" rate (potentially) won't be entitled to it anymore.

    Is that what you've read or was it something else?
    • BoGoF
    • By BoGoF 16th Dec 17, 12:13 PM
    • 5,541 Posts
    • 5,539 Thanks
    BoGoF
    Was in a newspaper but cant remember which one
    • theoretica
    • By theoretica 16th Dec 17, 6:52 PM
    • 6,072 Posts
    • 7,529 Thanks
    theoretica
    The 19/20/21 thing looks to me a lot like the Scottish government making changes for the sake of using their right to do so.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
    • dansmif
    • By dansmif 16th Dec 17, 8:29 PM
    • 3 Posts
    • 0 Thanks
    dansmif
    I couldn't find any salary calculators that have been updated with the proposed Scottish 2018/19 rates yet, so I've created a spreadsheet which is available for download here:

    wxw.dropbox.com/s/eqwchpodb0i7jg7/Scottish%20Income%20Tax%20Calculator.xlsx?dl=0#
    (replace the wxw part with www - as a new forum user I'm not able to post direct links)

    It's purely to analyse the income tax changes so it doesn't take into account NI etc. If there's any tax experts out there, can you check I've got the formulas and bands are right? I've compared it with the lookup table produced by ICAS on a recent BBC News article and they match up so I'm fairly confident it's accurate.

    From playing with the spreadsheet, it's interesting to see that although people on salaries under £33,000 are paying less income tax than last year, and those above are generally paying more, there is a small anomaly where if you're paid between £43,527 and £58,459 your income tax is actually *lower* than 2017/18.
    • poggs
    • By poggs 17th Dec 17, 8:59 PM
    • 131 Posts
    • 70 Thanks
    poggs

    From playing with the spreadsheet, it's interesting to see that although people on salaries under £33,000 are paying less income tax than last year, and those above are generally paying more, there is a small anomaly where if you're paid between £43,527 and £58,459 your income tax is actually *lower* than 2017/18.
    Originally posted by dansmif
    unless you've a partner in low pay job that can no longer transfer some of their allowance.

    In my case on £36000 I'm about £380 a year worse off under this plan than if I lived in England.

    But its ok as the druggies, wasters and scroungers will get more benefits and free houses, so thats ok I suppose. Because in the peoples republic of scotland there is nothing worse than actually supporting your own family. Thats the state's job surely?

    No more overtime for me. I'll just have to take it as time of in lieu to reduce my productively further along with lowering my tax paid.

    I'm sure that was the NATs plan wasnt it?
    Last edited by poggs; 17-12-2017 at 9:02 PM.
    • Allan frae Fife
    • By Allan frae Fife 17th Dec 17, 10:09 PM
    • 3 Posts
    • 3 Thanks
    Allan frae Fife
    But its ok as the druggies, wasters and scroungers will get more benefits and free houses, so thats ok I suppose.


    I'll just have to take it as time of in lieu


    -------------------------------------


    Ah well, it'll give you more time to read the Daily Mail
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