Responding to reports that HMRC is to write letters to every home in Scotland to raise awareness of the new Scottish Rate of Income Tax (SRIT), Stephen Hay, Baker Tilly’s Head of Tax in Scotland said:

‘Quite frankly, many people are utterly confused about the new Scottish rate of Income Tax and the reports that HMRC will be writing letters to every home to raise awareness is welcome. This confusion is hardly surprising, given it was only last month we found out how the Government is proposing to define a Scottish taxpayer. We now know this will be determined primarily on where an individual resides, not where they work. For most people this will be straightforward but for others, such as those working offshore or students studying away from home, this residence test could be problematic. There are also likely to be separate rules for service personnel.

‘The SRIT will also be a headache for employers – particularly in the border areas where staff members are resident in both England and Scotland, and where their take home pay may differ.’

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