Scottish Income Tax The Scotland Act 2016 gave the Scottish Government the power to set Income Tax rates and thresholds for Scottish taxpayers for 2017-18 onwards. The draft Scottish Budget, published on 12 December 2018, confirmed that the 5 band structure and tax rates (19%, 20%, 21%, 41% and 46%) will remain the same for 2019-20.
The thresholds for lower tax rates will rise in line with inflation and the higher rate threshold has been frozen. section continues> Further details on the Scottish Budget can be found on the GOV.SCOT webpage. These rates will be ratified in February 2019, once passed by the Scottish Parliament. If you have any clients who live in Scotland for most of the year, they need to make sure HMRC have their correct address details on record so that they pay the correct amount of Income Tax. It is important that your clients’ address details are up to date. This can be done by accessing their Personal Tax Account or visiting the Tell HMRC about a change to your personal details webpage on GOV.UK.
Welsh rates of Income Tax From 6 April 2019 all people living in Wales and who pay Income Tax will pay Welsh rates of Income Tax. PAYE individuals resident in Wales will receive a new tax code that begins with ‘C’, including individuals whose income is below the tax threshold. Self-employed individuals who file an online tax return will be asked to note their country of residence when filing their 2019-20 tax returns. The Welsh Government will set the Welsh rates of Income Tax. More information on Welsh taxes can be found on the GOV.WALES webpage. It is important that your clients inform HMRC when they change address. This can be done by visiting the Tell HMRC about a change to your personal details webpage on GOV.UK.