HMRC writes letter regarding Scottish income tax
HM Revenue and Customs (HMRC) has written to individuals it believes to be Scottish residents for the purposes of the new taxation system that is due to be applied in the UK north of the border.
The Scottish rate of income tax is the biggest change to hit the taxation of individuals in the UK for many years, and now HMRC is sending letters to individual taxpayers who are on their database as holding an address in Scotland.
Some people will have more complicated arrangements, so an individual's main place of residence will actually be the deciding factor as to whether or not he or she falls under the Scottish Parliament's new tax raising powers.
If HMRC has incorrect information on its database, it may affect an individual's status for PAYE purposes or under the self assessment system.
However, as HMRC has not written to anyone who they believe is not a Scottish taxpayer, some people may fall through the net without even knowing about it.
Other special cases that need to be considered by accountancy professionals working on behalf of clients include the fact that a non-UK resident cannot be a Scottish taxpayer, even if their UK main address is in Scotland.
Also, an individual with no obvious main place of residence will need to count days spent in Scotland against days in the other three parts of the UK. Anyone who changes their main place of residence during the year will become, or cease to be, a Scottish taxpayer.