Do you live in Scotland? New Tax Guide for Students guidance available
The Low Incomes Tax Reform Group (LITRG) has created new guidance in the ‘tax essentials’ section of the Tax Guide for Students website, providing information on the Scottish rate of income tax (SRIT). The guidance looks at what the SRIT is, how it works and who has to pay it.
Scottish taxpayers will pay the SRIT from 6 April 2016. LITRG have created their new ‘what is the Scottish Rate of Income tax’ section with the aim of helping individuals understand whether or not they are likely to have to pay the SRIT and how the SRIT affects the amount of income tax they pay.
The SRIT is not a separate tax; it is a power that the Scottish Parliament will have to affect the amount of income tax that Scottish taxpayers pay. The Scottish Parliament will have the power to set a single Scottish rate of income tax, which will determine the overall rates of income tax payable by Scottish taxpayers on certain types of income.
The SRIT is payable on non-savings and non-dividend income; for example, if your income consists of employment income and dividends, you will pay the SRIT on your employment income; but you will pay income tax at the UK-wide rates on your dividend income.
Only Scottish taxpayers will have to pay the SRIT. Generally, whether or not you are a Scottish taxpayer depends on where you live during the course of the tax year.
This guidance explores in more detail the types of income to which the SRIT applies, how the SRIT works and who is a Scottish taxpayer. It also looks at devolution in general, in Scotland, Wales and Northern Ireland.
The Scottish Government will announce the rate for the SRIT in its draft Budget, later in 2015. We will update our guidance once more information is available.