Those of you who think that tax is already way too complicated ain't seen nothing yet.
As from April 2016 the Scottish Parliament will have responsibility for the Scottish Rate of Income Tax (SRIT).
HMRC has published an e-brief on SRIT in which HMRC explains that, depending on the level the Scottish Parliament sets the rate at, Scottish taxpayers may pay a different rate of income tax to the rest of the UK.
The SRIT will not apply to income from savings such as building society interest or income from dividends. This rate will stay the same for all taxpayers across the UK.
An individual will pay the SRIT if they are resident in the UK for tax purposes, and their main residence for most of the tax year has a Scottish postcode.
HMRC will collect the SRIT on behalf of the Scottish Government.
HMRC will contact potential Scottish taxpayers before April 2016.
If an individual is eligible to pay the SRIT, their April 2016 tax code will begin with the letter 'S'. Where an individual pays income tax through their wages (Pay As You Earn), HMRC will advise their employer to treat them as a Scottish taxpayer.
As if HMRC didn't have enough to do already!
This will not end well.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.
Ken Frost has negotiated a 10% discount on any polices that may suit your needs.
However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.
What is Solar Tax Investigation Insurance?
Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Solar Tax Investigation Insurance
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"