The ATT has voiced concern that students studying at universities in Scotland, and who choose to stay in student accommodation during the holidays, will be treated as Scottish taxpayers according to new HMRC guidance. The ATT is worried that the loss of temporary resident status could see students subject to a higher rate of income tax. Paul Hill, chairman of the ATT’s technical steering group, commented: ‘University students ought to be treated as being temporarily resident in their place of study for the duration of their course as the vast majority are likely to intend to return to their families after graduation. If they are treated as only being temporarily resident in Scotland then it follows that they remain permanently resident elsewhere, in most cases at the family home. As long as that address is outside Scotland, the student should not be brought within the new Scottish income tax rules.’
The ATT has voiced concern that students studying at universities in Scotland, and who choose to stay in student accommodation during the holidays, will be treated as Scottish taxpayers according to new HMRC guidance. The ATT is worried that the loss of temporary resident status could see students subject to a higher rate of income tax. Paul Hill, chairman of the ATT’s technical steering group, commented: ‘University students ought to be treated as being temporarily resident in their place of study for the duration of their course as the vast majority are likely to intend to return to their families after graduation. If they are treated as only being temporarily resident in Scotland then it follows that they remain permanently resident elsewhere, in most cases at the family home. As long as that address is outside Scotland, the student should not be brought within the new Scottish income tax rules.’
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