Latest advice on Scottish tax threshold changes

13 March 2020

Following on from the Budget on 11 March 2020, and the confirmation that the tax rates and thresholds for tax year 2020-21 remain unchanged for England, Wales and Northern Ireland from those in operation for 2019-20, HMRC has published the ‘Rates and thresholds for employers 2020 to 2021.’

Within the document, the Scottish thresholds also remain unchanged from the 2019 to 2020 values but Scottish Parliament formally signed off the changes to Scottish taxation on 5 March 2020. As the thresholds have been agreed, we would have expected to see the new Scottish thresholds in place in the relevant section on the document.

HMRC’s Software Development Support Team (SDST) did confirm that they did not expect to see the new thresholds effective from 6 April 2020 but at a later date that would be confirmed in due course.

It is pleasing to see that the new Advisory Fuel Rates (AFRs) have been updated to include the most recently announced figures applicable from 1 March 2020, as the previous publication only included the figures applicable from 1 December 2019.

The CIPP and payroll professionals will be eager to hear when the new thresholds are intended to take effect from, and as soon as the CIPP has any further updates, we will update our members via News Online.


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