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Seòmar agus comataidhean

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 8 November 2025
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Displaying 2368 contributions

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Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Graham Simpson

Let us talk about S codes. For some reason, you do not have to tell HMRC where you live. Should it be a legal requirement to tell HMRC, given that we have tax divergence?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Graham Simpson

But you have not done that yet.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Graham Simpson

That is very much appreciated. However, the potential losers are not the companies, but the employees themselves. If they get taxed at the wrong rate, you will end up chasing them, and it is not their fault.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Graham Simpson

The conclusion is that, if the tax gap is widened, potentially even fewer people will come and the money will go down even further.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Graham Simpson

When?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Graham Simpson

That was for 2018-19. Have you done any analysis on other years? Has there been any analysis on how that gap might change in the future if the tax gap was to widen further?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Graham Simpson

Yes, I get that. The figures show that there has been net migration to Scotland, but you have said in your paper that there has been a financial loss because of the tax difference.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Graham Simpson

Alyson Stafford, in response to Mr Beattie, you referred to a number of reports that were published in April last year. One of those was an HMRC paper, so it might be that HMRC should respond to this question—you can decide between you. The HMRC paper, which is called “Impacts of 2018 to 2019 Scottish Income Tax changes on intra-UK migration and labour market participation”—a nice short title—says:

“In total, we estimate a loss in NSND Income Tax”—

which means non-savings, non-dividend income tax—

“from cross-border migration of £60.6 million”.

In other words, £60 million would have stayed in Scotland if tax bands had not changed. Is that correct?

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Graham Simpson

I appreciate that.

Public Audit Committee [Draft]

“Administration of Scottish income tax 2023-24”

Meeting date: 26 March 2025

Graham Simpson

Okay, but where you live is important. I am a bad example because I am an MSP, but if I was not an MSP and I moved to Carlisle, I would pay less tax. Where I live is important.