Awareness of Scottish Rate of Income Tax

07 March 2016

HMRC has begun an online awareness campaign on the Scottish Rate of Income Tax (SRIT) to help spread the word among both individuals and employers before implementation on 6 April 2016.

Throughout January 2016 the CIPP policy team together with HMRC ran a brief survey to establish payroll and employer readiness for the implementation of SRIT.


CIPP comment

We asked four key questions and the results showed that almost three quarters of respondents felt they had received sufficient information on SRIT and over three quarters know what they will need to do to if they have a Scottish Taxpayer on their payroll. The CIPP is hopeful that awareness will be much higher following HMRC’s online campaign and we will continue to work with them in any way we can to raise awareness even further.

Have you had sufficient information to help you to prepare for the introduction of the Scottish Rate of Income tax from April 2016?

72% (44) said Yes, 28% (17) said No.

Comments included:

  • While the concept has been there for a long time there has been limited specific practical information.
  • Yes through CIPP and a letter as an individual tax payer but as an employer we have received little notification from HMRC.
  • Am aware of HMRC publicity that it was coming in & software provider has confirmed that they are implementing 'S' prefix on payroll.

Have you received any queries regarding the Scottish rate of Income tax from your workforce?

10% (6) said Yes, 90% (55) said No

Comments included:

  • Mainly the queries have regarded why they have to advise HMRC themselves regarding a change of address for being classed as a Scottish Taxpayer, rather than directly to do with the SRIT itself.
  • How it will work with cross border payrolls where it may be beneficial to live in England but work in Scotland.
  • Clarity on whether they are classed as SRIT payer and about address changes.

Do you know what you need to do if you have a Scottish taxpayer in your payroll?

78% (46) said Yes, 22% (13) said No

Comments included:

  • Possibly - but my main concerns are more around things like tax on PSA calculations
  • Await notification of new tax code from HMRC and implement accordingly
  • Not yet
  • Ensure 'S' suffix is in use & P45 screen can have 'S' suffix recorded/printed
  • With the exception of net pension deductions

Do you know that tax codes for Scottish taxpayers will start with an “S”?

97% (57) said Yes, 3% (2) said No