Scottish tax code increases 

hmrc

HMRC has issued a note to stakeholders to warn employers that the Scottish tax rates, thresholds and tax code increases cited in its form P9X: Tax codes published the week before last are subject to change.  This is because the rates and threshold that will be confirmed by the Scottish Parliament are likely to be different.  HMRC’s note says:

“HMRC recently published the P9X , containing rates, thresholds and tax code increases required by employers and payroll providers, to enable them to prepare their payroll records and tax codes for the tax year commencing 6 April 2017.

The Scottish income tax rates and thresholds shown in the P9X were those announced in the draft Scottish Budget in December 2016.

However, these rates and thresholds are subject to change and you may be aware that changes to these proposals were announced by Scottish Government last week.

Until they are confirmed by Scottish Parliament, HMRC will not know the correct tax rates and thresholds for Scottish taxpayers for the tax year commencing 6 April 2017.

HMRC apologise for any confusion this may cause and will advise you of the correct Scottish income tax rates and thresholds for 2017 to 2018 as soon as they are ratified by Scottish Parliament. Scottish Government have advised that Scottish Parliament is currently scheduled to agree these in the week commencing 20 February 2017.”

Pending HMRC announcing corrected tax code increases for employers to use, payrolls should incorporate the data in the P9X published last week.

Once the final rates and threshold figure are available, many employers will have to “patch” their payroll software as most IT products have been released with the original figures.

Source: ICAEW

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