We are now counting down the days on our advent calendars, Christmas is coming….. and so is the Scottish rate of Income Tax.
The Scottish Rate of Income Tax (SRIT) will start on 6 April 2016, and will apply if your clients:
- live in Scotland
- move home to or from Scotland;
- live in a home in Scotland and one elsewhere in the UK, for example a second home for work; or,
- don’t have a permanent home and stay in Scotland regularly.
SRIT will be based on where you live and not where you work. It is important that as you review your clients’ affairs for SA filing you make sure their records, especially their residential address, is up to date. Where your clients may have more complex residency you can work out if they’re going to be Scottish taxpayers.
From April 2016 tax codes for Scottish rate taxpayers will begin with the letter ‘S'. You may want to ensure that any employers you represent have their payroll software ready and up to date.