When will Scottish tax changes go ahead?

So the Westminster budget has happened and the personal allowance for the UK left at £12,500. So no change for England, Northern Ireland and Wales.

The Scottish Parliament have approved changes to Scottish taxation, yet the GOV and HMRC have issued last years values and not the Scottish Parliament set bands and thresholds! What is going on?


As the Scottish proposals were dependent on the (very late) Westminster Budget 2020, and the collection of Scottish Tax comes under the control of HM Revenue and Customs, the HM Treasury and HMRC had confirmed that any changes announced in the budgets (including the Welsh and Scottish budgets) would not be implemented on 6th April 2020 as there would be insufficient time, but at a later point in time yet to be announced. Many of the mature payroll professions will remember tax changes being applied from 18th May.

HMRC are yet to confirm the update point for the changes. No update has yet been provided in relation to the Scottish tax calculation parameters.

Hopefully news will soon be forthcoming with confirmation of the change parameters and the effective date of the change (and any backdating requirement).

Let’s hope for the sake of the payroll profession, that in future the government and HMRC will better plan and truly involve stakeholders in moving forward with change. 2020 is the year of late late late.

PAYadvice.com 13/3/2020

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