Tax in Deloitte in Scotland
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With the introduction of the Scottish income tax, we now have a more direct link between the economy, tax receipts and the Scottish Budget. The significance of the Barnett Formula block grant has been reduced, and this will expose the budget in Scotland to the risk of a reduction in economic performance but will mean that the Scottish Government will have more to spend if the economy grows.
With the end of the financial year upon us, now is a good time to reflect on Scotland’s economic performance over the last twelve months and perhaps more importantly, consider the challenges that lie ahead.
The deadline for 2016/17 tax returns is only days away. Those who are self-employed, receive rental or savings income over certain limits, or who have made capital gains over the annual exemption of £11,100 for 2016/17 will need to complete their self-assessment by the end of the month. People who receive child benefit and where the higher earner in the couple has income of over £50,000 are also affected.
By Lyndsay MacGregor, Associate Director, Tax
Over the past 15 or so years, we have seen many hundreds of companies implement equity incentives using ‘Growth Shares’.
Growth Shares are a bespoke solution, such that no two arrangements are the same. However, in general terms, they are a separate class of shares, which only deliver a return at a point in the future (generally on exit) and only to the extent that the value of the underlying company at that time exceeds a pre-determined threshold.
The end of the tax year is fast approaching and this is always a good time to ensure your tax house is in order. With this in mind, we’ve put together some top tips for things that you should consider before 5 April 2016.
Few days are met with more anticipation, and sometimes trepidation, than Budget day. This year’s set of announcements were a complex mixture of tax changes, in what will be the first revenue-neutral Budget of this Parliament.
Some gained and others found themselves worse off from proceedings. Among the winners were individuals, savers, higher rate taxpayers, small businesses and oil and gas companies. Those who fared less well were larger businesses, property investors and, potentially, people who like to indulge in a sugary drink.
The last couple of years have seen a great deal of change in Scotland – devolution continues to evolve and with the fiscal framework discussions now concluded, more is to come. On top of all this, we have the Scottish Parliament elections looming.
Against this backdrop, many tax practitioners will be wondering: what’s next for income tax rates and council tax in Scotland?
In my last blog I talked about the introduction of the Scottish Rate of Income Tax (SRIT). I looked at some of the key changes the new legislation will make and specifically what it means for employers. Let’s not forget however that SRIT applies to all non-savings income, so the self-employed and pensioners will also be affected.
So much has happened in British politics over the last year that it would be easy to lose track of what is actually changing. Between the General Election, the Smith Commission, the beginnings of the EU referendum, among many other developments, there’s a lot for businesses to keep up with.
Entering the “real world” of work can seem a daunting prospect. On the first day, your mind is swimming with questions: What will my colleagues be like? What will they expect me to know? What time should I leave on my first day?
In most cases, you’ve already made up the answers in your head before you take a single step in the office.