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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 2 September 2025
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Displaying 2215 contributions

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Public Audit Committee

Administration of Scottish Income Tax 2022-23

Meeting date: 25 April 2024

Graham Simpson

But why can Scottish taxpayers not have that dealt with at source, so that they get the correct relief at source? Why do they have to put that down on a self-assessment form?

Public Audit Committee

Administration of Scottish Income Tax 2022-23

Meeting date: 25 April 2024

Graham Simpson

Therefore, people—if they tell you anything—could lie.

Public Audit Committee

Administration of Scottish Income Tax 2022-23

Meeting date: 25 April 2024

Graham Simpson

In that case, I have a question for Ms Stafford. Could the Scottish Government legislate to make it a legal requirement for you to inform HMRC if you change address?

Public Audit Committee

Administration of Scottish Income Tax 2022-23

Meeting date: 25 April 2024

Graham Simpson

Okay—that would be useful. I put the same question to you, Mr Athow. Could the UK Government legislate on that?

Public Audit Committee

Administration of Scottish Income Tax 2022-23

Meeting date: 25 April 2024

Graham Simpson

Okay. I want to look at a couple of other areas. One is tax debt; the other is pension contributions, which were dealt with in a section in the earlier report that we looked at.

We have explored tax debt before. On 31 March 2023, the UK tax debt was £43.9 billion, according to the National Audit Office report. However, we do not seem to have a breakdown of where that debt falls across Scotland, England and Wales. I suppose that this is a question for you, Ms Stafford: does the Scottish Government intend to build up an accurate picture of what the tax debt is in Scotland?

Public Audit Committee

Administration of Scottish Income Tax 2022-23

Meeting date: 25 April 2024

Graham Simpson

Why is it only an estimate, Mr Athow?

Public Audit Committee

Administration of Scottish Income Tax 2022-23

Meeting date: 25 April 2024

Graham Simpson

Is that in Scotland?

Public Audit Committee

Administration of Scottish Income Tax 2022-23

Meeting date: 25 April 2024

Graham Simpson

That is a serious issue.

Public Audit Committee

Administration of Scottish Income Tax 2022-23

Meeting date: 25 April 2024

Graham Simpson

It comes to a big number, and that money is not flowing to Alyson Stafford’s department. Ms Stafford, you must have a concern about that.

Public Audit Committee

Administration of Scottish Income Tax 2022-23

Meeting date: 25 April 2024

Graham Simpson

You should all be doing better on that, because it seems a relatively straightforward thing to do. You will know which employers are not paying what they should. However, I will leave that there, because I want to ask about pensions.

The section on pension contributions in the National Audit Office report says:

“Pension scheme administrators must identify Scottish taxpayers so that tax relief is correctly allocated. Pension administrators claim tax relief at source on behalf of their members and add this to their members’ contributions. HMRC’s Relief at Source (RAS) system automatically confirms the residency status of pension scheme members”.

Of course, we have to know where people live to ensure that the correct relief is applied at source.

The report goes on to say that the RAS system

“applies tax relief on pension contributions at the basic rate of 20% for all taxpayers. Scottish taxpayers paying a tax rate above 20% can claim the remaining tax relief through a Self Assessment return or by contacting HMRC.”

How many people know that they can do that or realise that it is an issue?