Better Together Doesn’t Mean Zero Tax Code Changes!

If you’re just tuning into the post-referendum news, let’s bring you up to speed: Scotland’s residents voted “No” on Scottish independence, preferring to stay within the UK. If you’re looking at the tax deadlines this year, you might want to know what’s going to change, and whats going to stay the same.

The big news is a “devolution” spree that will get Scotland a few powers they didn’t have before, while keeping them within the union. Holyrood can raise a new 2 billion pounds in revenues, which will give them greater control over taxes than what’s currently in motion.

The Scottish Parliament isn’t dead in the water just because they’re remaining in the union. The Scotland Act is about to come into effect in April 2016, letting the country’s Parliament have more power over the taxes.

The current income tax is around 3p per pound. By 2016, Scottish Parliament could change that to 10p in the pound.

Zero Tax Code

Most within the UK know that the basic tax rate is around 20% right now. Yet in a little under 2 years, the rate could be reduced to 10%, or raised to 30%. The higher rate is already 40%, but Scotland could decide to give its residents a break. The top rate of 45% can be reduced as well, but it’s up to them to decide.

The UK is moving quickly to try to make peace with Scotland, given that over 1.6 million voters turned out to vote “Yes” to independence. David Cameron is trying to act quickly, but they also want to make sure that they handle things fairly. Too much focus on Scotland above the other countries could spark further problems.

Benefits are where the real battle begins. Scotland wants to get rid of the “bedroom tax”, which is the spare room subsidy portion of the housing benefit. The country also wants to control the execution of the Work Programme, a key resource that helps people find jobs.

The issues will be brought to the floor on the 16th of October, but nothing will be published until January. Yet don’t expect any change even in January, as the policy won’t become law until after May 2015.

Scotland has a long road ahead, just as they would have if they separated from the UK.

What do you think? Should Scotland have split form the UK and formed their own nation again, or should they stay and try to work things out with Westminster?

Extra £1,800 Needed a Year by 2015 to Pay Off Credit Cards

pay off loans

As if leaving the weekend behind and making the commute to work on a rainy day wasn’t enough, a report in The Telegraph is now telling us that an average household will need to earn an extra £1,800 a year by 2015 to be able to pay for the interest on … [Continue reading]

Handling Business Tax in the UK

Corporate Tax

New businesses are under the same regulations as established companies. In other words, saying to the HMRC that you "didn't know" there would be business tax to pay just isn't going to cut it. If you really want to know what type of taxes you're … [Continue reading]

The New ISA Limits Are Here – And Here’s How to Use Them to Your Advantage

New ISA Limits

Saving has been a hot button topic around the country for a long time. Just how do you save when wages are falling and the cost of living is rising? HMRC announced in March that the ISA limits were changing. Now that we've had a few months to see … [Continue reading]

Watch Out for these Common Mistakes

filing taxes

Do you know that you can save money when filing your taxes? Most of you still make common mistakes that cost money when filing taxes. By avoiding these simple mistakes, it is very easy to save money on taxes and get maximum tax return possible. What … [Continue reading]

Could Tax Transparency Schemes Be Coming Your Way

tax fairness

Taxes aren't high on the UK consumer's list of favorite things, but it's absolutely compulsory. So you need to be aware of any changes that could be possibly coming your way. The truth is that today's bit of news affects the countries that are … [Continue reading]

Limited company contractors – what you need to know about tax

pay tax

While operating as a limited company contractor is the most tax efficient way of working on a freelance basis, it is unfortunately not as simple as merely registering as a limited company and choosing to pay less income tax and National … [Continue reading]

PAYE Tax Changes You Need to Know About

PAYE Tax Changes

UK taxpayers got a real bombshell last Saturday -- they learned that the Pay As You Earn (PAYE) information has to be reported in real time. This is done by the employer, so you might not be aware of how this affects you. We wanted to chime in with … [Continue reading]

Life insurance and Tax

inheritance tax

There are many people that do not realise that if they inherit a life insurance pay out then they may have to pay inheritance tax on it. They may just assume that they will get a pay out that will cover debt and other expenses and do not think about … [Continue reading]

A Gentle Reminder To Invest Your Tax Refund Wisely

Tax Refund

A sudden influx of cash ahs the tendency to get us giddy, but that doesn’t mean that you have to necessarily be gleeful about it. The truth is that your tax refund is money that was yours all along. It was given to a government for their purposes, … [Continue reading]