Scottish Rate of Income Tax will not need to be shown on P60

12 June 2015

The CIPP are very pleased to share the news from HMRC that there will no longer be a requirement from 2016 to include the Scottish Rate of Income Tax rate separately on the P60.

HMRC previously asked that from April 2016 the P60s would need to separately show the Scottish Rate of Income Tax proportion on the ‘In This Employment’ section.

Over the last few months HMRC and the Scottish Government have consulted with Employers and Software Developers on how best to implement these changes. They have listened to the concerns and issues raised about the complexity of making this change especially given the potential for further changes to accommodate the extended income tax powers contained within the current Scotland Bill. Therefore, the decision was taken by the Scottish Government to no longer mandate the inclusion of SRIT separately on the P60 from April 2016.

However, the P60 should still show a Scottish Tax Code, where appropriate.

HMRC will show the Scottish Rate proportion separately on the individual’s Annual Tax Summary for the 2016/17 tax year onwards.

While there is no requirement to include the Scottish Rate amount separately on payslips, HMRC will continue working with employers on how best to ensure employees have visibility and understanding of the Scottish rate of Income Tax.


CIPP comment

The CIPP Policy Team has been a member of all the various consultation forums that have transpired since the Commission on Scottish Devolution first began work in April 2008. In particular Karen Thomson and Samantha Mann were heavily involved in the lobbying against the requirement to show the Scottish rate of Income Tax on the P60.

Karen commented:

“We are delighted that this requirement has been overturned, it is one less administrative burden for payroll professionals to deal with. We would like to thank all those who contributed to the various surveys and discussions on this subject as without your input, our pleas for change have little substance. It is these types of turnarounds from government that prove just how invaluable member collaboration and the CIPP’s engagement with government departments are.”