Scotland To Create Its Own Revenue Separate From The HMRC
Owning a business in Scotland could potentially lead to lower tax liabilities should the Scottish Parliament succeed in creating their own Revenue (Revenue Scotland) by 2015.
Having rejected having the HMRC administer and collect devolved taxes, they have decided to create this body to help ‘serve the needs of the Scottish people at a lower cost than the UK’.
What will it be in charge of?
With the powers to levy stamp duty land tax and landfill tax being devolved to Edinburgh by 2015, the Scotland Revenue plans to first focus on these 2 taxes by working alongside Registers of Scotland.
However, it has been revealed that the HMRC will continue to be responsible for administering and collecting income tax, even after the Scotland Act is finalised.
How will this affect your accounts?
2015 may feel like a long way away; however should you own a business in Scotland it would be unwise to wait until this Revenue has been created before acting.
With the HMRC remaining responsible for income tax, it is important that you make sure you are aware of which Revenues of responsible for what. For instance, send your income tax details to the Scotland Revenue (not the HMRC) and you could potentially incur fines.
For this reason it is important that you employ a chartered accountant who is update with UK and Scottish legislations and who knows which of these are responsible for each of your taxes to ensure you pay the correct rates to the right Revenue.
With their help and guidance, they can help you to navigate these 2 revenues and make sure your forms are never late.