The National Audit Office (NAO) has urged HMRC to make use of Scottish taxpayer data now becoming available to improve its estimates of Scottish income tax receipts. Maintaining accurate address records remains the biggest risk to accurate assessment and collection, says the NAO in its report, ‘Administration of the Scottish rate in 2016/17’.
Neither taxpayers nor employers are legally required to tell HMRC of changes of address; and HMRC does not know whether its online marketing campaign in spring 2017 to promote using personal tax accounts for changes of address has had a significant impact.
HMRC estimates it will collect £4.6bn in Scottish income tax for 2016/17, from approximately 2.6m Scottish taxpayers, although the actual amount will not be known until July 2018. Beginning in 2020/21, the Scottish government’s budget will be adjusted to reflect actual tax receipts collected from Scottish taxpayers from 2017/18. The Scottish government will receive £11.9bn in 2017/18, based on its forecast of Scottish income tax revenue.
HMRC continues to administer and collect Scottish income tax as part of the UK tax system. The Scottish government pays HMRC’s administration costs, which in 2016/17 amounted to £6.3m.
HMRC expects to spend £26.8m in total by 2019/20 on implementing changes in income tax rules in Scotland, most of it representing IT systems costs. The Scottish government estimates its changes to the higher rate threshold will generate additional revenue of £127m in 2017/18.
The National Audit Office (NAO) has urged HMRC to make use of Scottish taxpayer data now becoming available to improve its estimates of Scottish income tax receipts. Maintaining accurate address records remains the biggest risk to accurate assessment and collection, says the NAO in its report, ‘Administration of the Scottish rate in 2016/17’.
Neither taxpayers nor employers are legally required to tell HMRC of changes of address; and HMRC does not know whether its online marketing campaign in spring 2017 to promote using personal tax accounts for changes of address has had a significant impact.
HMRC estimates it will collect £4.6bn in Scottish income tax for 2016/17, from approximately 2.6m Scottish taxpayers, although the actual amount will not be known until July 2018. Beginning in 2020/21, the Scottish government’s budget will be adjusted to reflect actual tax receipts collected from Scottish taxpayers from 2017/18. The Scottish government will receive £11.9bn in 2017/18, based on its forecast of Scottish income tax revenue.
HMRC continues to administer and collect Scottish income tax as part of the UK tax system. The Scottish government pays HMRC’s administration costs, which in 2016/17 amounted to £6.3m.
HMRC expects to spend £26.8m in total by 2019/20 on implementing changes in income tax rules in Scotland, most of it representing IT systems costs. The Scottish government estimates its changes to the higher rate threshold will generate additional revenue of £127m in 2017/18.
