Scotland/England tax differences.
Thread Starter
Scotland/England tax differences.
I believe this was discussed on here before, but can't remember any specifics.
The SNP has stated that it will not adopt the UK governments change to the 40% tax threshold:
SNP will not adopt UK Chancellor's 40p tax threshold change - BBC News
Therefore, someone in the UK military earning more than £43,387 faces paying a different amount of income tax depending on whether they are living (based?) in Scotland or England. While the difference may not be huge to start with, the UK government is talking of increasing the 40% threshold to £50,000 by 2020, while, if the SNP continue to increase their threshold by just CPI, it could be around £45-46k by 2020, giving a difference in the individuals tax bill between England (+ Wales!) and Scotland of around £800-£1,000.
I believe someone pointed out before that there are some financial benefits of living in Scotland, free prescriptions, education, etc, which may be considered 'compensation'.
Will the MOD be doing anything about this situation, or will it just be a case of 'it goes with the territory' - literally?
The SNP has stated that it will not adopt the UK governments change to the 40% tax threshold:
SNP will not adopt UK Chancellor's 40p tax threshold change - BBC News
Therefore, someone in the UK military earning more than £43,387 faces paying a different amount of income tax depending on whether they are living (based?) in Scotland or England. While the difference may not be huge to start with, the UK government is talking of increasing the 40% threshold to £50,000 by 2020, while, if the SNP continue to increase their threshold by just CPI, it could be around £45-46k by 2020, giving a difference in the individuals tax bill between England (+ Wales!) and Scotland of around £800-£1,000.
I believe someone pointed out before that there are some financial benefits of living in Scotland, free prescriptions, education, etc, which may be considered 'compensation'.
Will the MOD be doing anything about this situation, or will it just be a case of 'it goes with the territory' - literally?
Gentleman Aviator
I thought that all servicepeople - for tax reasons - were regarded as being in England (or maybe it was UK - in which case I do see the problem!).
If not, where do I claim back the UK tax I paid when I was in sand pits various - must add up to 5 or 6 years worth in all ........
If not, where do I claim back the UK tax I paid when I was in sand pits various - must add up to 5 or 6 years worth in all ........
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Not sure what the cartoon is saying?! Anyhoo - I asked similar questions on the Budget thread but not seen a definitive reply.
Whatever the MoD's plan , I wonder if it will equally affect FTRS and Civil Servants based in Scotland? I also wondered about those lucky enough to hit the threshold on their MoD pensions (Grp Capt and above possibly?).
I'm aware there is an 'S' prefix being added to Scottish resident taxpayers tax codes, but asking around up here, that hasn't happened for everyone.....
Whatever the MoD's plan , I wonder if it will equally affect FTRS and Civil Servants based in Scotland? I also wondered about those lucky enough to hit the threshold on their MoD pensions (Grp Capt and above possibly?).
I'm aware there is an 'S' prefix being added to Scottish resident taxpayers tax codes, but asking around up here, that hasn't happened for everyone.....
What happened to service persons "living in" on base and in service married quarters when the poll tax was introduced a year early in Scotland? Genuine enquiry, I was in RAFG at the time.
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I'm aware there is an 'S' prefix being added to Scottish resident taxpayers tax codes, but asking around up here, that hasn't happened for everyone.....
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MickJ3
I was based at Lossie when the poll tax was introduced early in Scotland living on base and then in a private hire off base. IIRC I had to pay the tax whilst living in both locations.
I was based at Lossie when the poll tax was introduced early in Scotland living on base and then in a private hire off base. IIRC I had to pay the tax whilst living in both locations.
MickJ3 and Stuff
I was a resident of MacDonald Drive (Lossie) when the community charge (aka poll tax) was introduced. We had to pay it. It was not deducted at source nor amended in any way to average it out against other Service locations in Scotland.
I recall getting into some bother with the local council over payments. I attempted to pay it monthly, in 12 equal installments. The community charge replaced rates (in Scotland earlier than Engand and Wales to avoid wasting money on the periodic reassessment of rates that was due). Unaware that rates were paid in (I think ) 10 or 11 instalments missing out one at the end of February (short month; less pay) I quickly 'fell behind' with payments and the council were very quick to come knocking.
All much simpler now with CILOCT deducted at source (albeit I hear that we on overseas tours will stop paying it at end Mar 16, yipeee)
Regards
Batco
I was a resident of MacDonald Drive (Lossie) when the community charge (aka poll tax) was introduced. We had to pay it. It was not deducted at source nor amended in any way to average it out against other Service locations in Scotland.
I recall getting into some bother with the local council over payments. I attempted to pay it monthly, in 12 equal installments. The community charge replaced rates (in Scotland earlier than Engand and Wales to avoid wasting money on the periodic reassessment of rates that was due). Unaware that rates were paid in (I think ) 10 or 11 instalments missing out one at the end of February (short month; less pay) I quickly 'fell behind' with payments and the council were very quick to come knocking.
All much simpler now with CILOCT deducted at source (albeit I hear that we on overseas tours will stop paying it at end Mar 16, yipeee)
Regards
Batco
Last edited by BATCO; 23rd Mar 2016 at 13:27. Reason: Spelling!
The DiN essentially says 'tough sh1t' if you are either based in Scotland with a Scottish home address or you are based in England/Wales/NI with your family home in Scotland. Apart from varying the rate at which the higher tax band cuts in, the SNP/Scottish Govt will also be able to vary the rate of income tax across the board (up to a level of 3% difference - I think).
On the basis that Scotland can only ever expect to be run by a socialist government, it's probably going to be a bum deal in terms of taxation for anyone who earns over £30k. Make the rich pay more and all that.....
Reminds me of Britain in the 70's and standby for a steady trickle of wealth creators starting to move south. This has already started to happen with the computer gaming high flyers trying to sell up before the big hike in property stamp duty, for anyone selling a house above £325k
On the basis that Scotland can only ever expect to be run by a socialist government, it's probably going to be a bum deal in terms of taxation for anyone who earns over £30k. Make the rich pay more and all that.....
Reminds me of Britain in the 70's and standby for a steady trickle of wealth creators starting to move south. This has already started to happen with the computer gaming high flyers trying to sell up before the big hike in property stamp duty, for anyone selling a house above £325k
Party - the 3% variation was the power given to the Scottish Assembly on formation. Never used as too much of a political hand-grenade until the SNP established a fiefdom.
The new powers come into force now (Scottish Act) and allow them to set any rate of tax (although basic rate threshold still set by UK gov). It is now a balance of "what do we need" (reduced income from UK tax coffers) vs "what can we get away with grabbing before losing votes". When you look at the SNP voting demographic, you can see the obvious targets are those in the 40% bracket.... After all, most of the really wealthy SNP supporters live outside of the UK (Sean Connery, Billy Connelly etc. etc.)
The new powers come into force now (Scottish Act) and allow them to set any rate of tax (although basic rate threshold still set by UK gov). It is now a balance of "what do we need" (reduced income from UK tax coffers) vs "what can we get away with grabbing before losing votes". When you look at the SNP voting demographic, you can see the obvious targets are those in the 40% bracket.... After all, most of the really wealthy SNP supporters live outside of the UK (Sean Connery, Billy Connelly etc. etc.)
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