Scottish Rate of Income Tax

18 December 2015

Following the announcement by the Scottish Government on 16 December 2015 that the Scottish Rate of Income Tax (SRIT) for 2016-17 will be set at 10%, HMRC’s Software Developers Support Team issued some reminders:

  • For the 2016-17 tax year the overall rates of income tax for Scottish taxpayers will remain the same as for taxpayers within the rest of the United Kingdom (rUK).
  • ‘S’ tax codes must still be applied where received from HMRC. Any SRIT tax codes issued electronically for 2016-17 will contain an ‘S’ within the Tax Regime indicator in accordance with the published technical specifications.
  • There will be no Scottish equivalent of the NT code. HMRC will not be issuing any SNT codes, so please do not allow your users to populate the Tax Regime field with an ‘S’ when an NT code is in use.

Appendix B of the PAYE Tax Table Routines and Free of Tax specifications will be updated shortly to show the Scottish rates/parameters. References to the SVR (Scottish Variable Rate) will be removed and replaced with SRIT but the method described in the specification remains unchanged.