If you’re an employer, please note that the Scottish Rate of Income Tax (SRIT) comes into effect from 6 April 2016. The Scottish rate for 2016 to 2017 has been set at 10%, meaning 10p in every £1 will go to the Scottish Government.
You may have already received your annual coding notice but, if not, you soon will. It will include the new ‘S’ code for Scottish taxpayers.
What you will need to do:
- Please check with your provider that your payroll software is up to date and ready to apply the new ‘S’ code.
- If you use HMRC’s Basic PAYE tools, you will need to make sure you use the latest version which will be published in March 2016.
- You must use the code in RTI that was supplied by HMRC.
- Remember the ‘S’ code depends on the residential address of the employee. Please encourage employees to tell HMRC if their address changes, as this will help them to correctly identify any Scottish taxpayers and ensure they pay the right amount of tax. They can do this online at www.gov.uk/hmrcchanges
Full details can be found at www.gov.uk/government/news/the-scottish-rate-of-income-tax
