![[UK] Scottish Rate Resolution 2020/21](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-Tourists-Favourite-Place-In-Sc-258364672_6115a199-5656-4a34-be5f-3fd1879aef59_1200x.jpg?v=1585158303)
The draft Scottish Budget was given on the 6th of February 2020 and proposed tax rates and bands to apply to Scottish Taxpayers in the tax year 2020/21. Following an agreement with the Green Party, the Scottish Rate Resolution was passed and is now law.
There are no differences in the rates of tax that applied in 2019/20:
|
Band |
Rate |
|
|
% |
|
Scottish Starter |
19 |
|
Scottish Basic |
20 |
|
Scottish Intermediate |
21 |
|
Scottish Higher |
41 |
|
Scottish Top |
46 |
The following thresholds apply to each of the above rates of Income Tax:
|
Band |
2019/20 |
2020/21 |
Change |
|
|
£ |
£ |
£ |
|
Scottish Starter |
1 – 2,049 |
1 – 2,085 |
+36 |
|
Scottish Basic |
2,050 – 12,444 |
2,086 – 12,658 |
+178 |
|
Scottish Intermediate |
12,445 – 30,930 |
12,659 – 30,930 |
-214 |
|
Scottish Higher |
30,931 – 150,000 |
30,931 – 150,000 |
0 |
|
Scottish Top |
Over 150,000 |
Over 150,000 |
0 |
The Higher Rate threshold for 2020/21 is unchanged from 2019/20 at £43,430. This is the value of the UK-wide Personal Allowance and the Intermediate Rate Threshold (£30,930). The following table is a clearer indication of the Income Tax ‘bracket’ that Scottish Taxpayers fall into:
|
Band |
2019/20 |
2020/21 |
Change |
|
|
£ |
£ |
£ |
|
Scottish Starter |
12,501 – 14,549 |
12,501 – 14,585 |
+36 |
|
Scottish Basic |
14,550 – 24,944 |
14,586 – 25,158 |
+178 |
|
Scottish Intermediate |
24,945 – 43,430 |
25,159 – 43,430 |
-214 |
|
Scottish Higher |
43,431 – 150,000 |
43,431 – 150,000 |
0 |
|
Scottish Top |
Over 150,000 |
Over 150,000 |
0 |
Global Payroll Association Comment
Whilst this is in law and the necessary Resolution has been passed, HMRC have not given direction as to when these will be in force. Gov.scot says to use the thresholds and rates confirmed in the 2020 Resolution. Gov.uk says to use the rates and bands that were in place in 2019/20. This is the page that software developers have been directed to.
So, do you go with what the law says or do you go with what HMRC says? It is uncomfortable but we feel that not all software products will be acting the same at the start of 2020/21 and that is not a good position to be in.
The draft Scottish Budget was given on the 6th of February 2020 and proposed tax rates and bands to apply to Scottish Taxpayers in the tax year 2020/21. Following an agreement with the Green Party, the Scottish Rate Resolution was passed and is now law.
There are no differences in the rates of tax that applied in 2019/20:
|
Band |
Rate |
|
|
% |
|
Scottish Starter |
19 |
|
Scottish Basic |
20 |
|
Scottish Intermediate |
21 |
|
Scottish Higher |
41 |
|
Scottish Top |
46 |
The following thresholds apply to each of the above rates of Income Tax:
|
Band |
2019/20 |
2020/21 |
Change |
|
|
£ |
£ |
£ |
|
Scottish Starter |
1 – 2,049 |
1 – 2,085 |
+36 |
|
Scottish Basic |
2,050 – 12,444 |
2,086 – 12,658 |
+178 |
|
Scottish Intermediate |
12,445 – 30,930 |
12,659 – 30,930 |
-214 |
|
Scottish Higher |
30,931 – 150,000 |
30,931 – 150,000 |
0 |
|
Scottish Top |
Over 150,000 |
Over 150,000 |
0 |
The Higher Rate threshold for 2020/21 is unchanged from 2019/20 at £43,430. This is the value of the UK-wide Personal Allowance and the Intermediate Rate Threshold (£30,930). The following table is a clearer indication of the Income Tax ‘bracket’ that Scottish Taxpayers fall into:
|
Band |
2019/20 |
2020/21 |
Change |
|
|
£ |
£ |
£ |
|
Scottish Starter |
12,501 – 14,549 |
12,501 – 14,585 |
+36 |
|
Scottish Basic |
14,550 – 24,944 |
14,586 – 25,158 |
+178 |
|
Scottish Intermediate |
24,945 – 43,430 |
25,159 – 43,430 |
-214 |
|
Scottish Higher |
43,431 – 150,000 |
43,431 – 150,000 |
0 |
|
Scottish Top |
Over 150,000 |
Over 150,000 |
0 |
Global Payroll Association Comment
Whilst this is in law and the necessary Resolution has been passed, HMRC have not given direction as to when these will be in force. Gov.scot says to use the thresholds and rates confirmed in the 2020 Resolution. Gov.uk says to use the rates and bands that were in place in 2019/20. This is the page that software developers have been directed to.
So, do you go with what the law says or do you go with what HMRC says? It is uncomfortable but we feel that not all software products will be acting the same at the start of 2020/21 and that is not a good position to be in.