HMRC coding notices and Scottish Draft Budget tax provisions clash
ICAS recently learned that HMRC sent coding notices to employers which may now need to be changed because the Scottish Higher Rate threshold could be different to that announced in the Draft Scottish Budget in December 2016.
We understand that HMRC is going to issue an employer bulletin, but until then, HMRC has sent out the following notice:
"HMRC recently published the P9X, containing rates, thresholds and tax code increases required by employers and payroll providers, enabling them to prepare their payroll records and tax codes for the tax year commencing 6th April 2017.
The Scottish income tax rates and thresholds shown in the P9X were those announced in the Draft Scottish Budget in December.
However, HMRC realise that these rates and thresholds are subject to change and some of you will be aware that changes to these proposals were announced by the Scottish Government last week.
Until they are confirmed by the Scottish Parliament, HMRC will not know the correct tax rates and thresholds for Scottish taxpayers for the tax year commencing April 2017.
We realise this will impact on finalising your 2017/18 software products.
Please be assured that HMRC will advise you of the correct Scottish income tax rates and thresholds for 2017/18 as soon as they are ratified by the Scottish Parliament. The Scottish Government have advised that the Scottish Parliament is currently scheduled to agree these in the week commencing 20 February."