The Scottish Parliament has confirmed the income tax bands that will apply to Scottish taxpayers for 2019/20. The bands confirm the announcement made in the Draft Scottish Budget last December.

The 2019/20 income tax rates and bands for Scottish taxpayers on income (other than savings and dividend income) are as follows:

Scottish taxpayers are entitled to the same personal allowance as individuals in the rest of the UK which for 2019/20 is £12,500. The allowance is reduced by £1 for every £2 of adjusted net income in excess of £100,000.

The UK higher rate tax point for 2019/20 is set at £37,500 and the tax rates for non-savings and non-dividend income are 20%, 40% and 45% respectively. The additional rate of 45% is payable on income over £150,000.

Internet links: GOV.SCOT income tax

The Insolvency Service has urged individuals saving for retirement to protect their pension pots from criminals and ‘negligent trustees’.

Research carried out by the Service found that criminals use a range of tactics to convince savers to part with their funds, including persuading individuals to access their pension and invest in unregulated schemes.

Pension scam victims lost an average of £91,000 to criminals in 2018, according to Financial Conduct Authority (FCA) research. Criminals often use cold-calls and offers of free pension reviews to convince their victims to comply.

The Insolvency Service has urged savers to be wary of calls that come out of the blue; seek financial advice before altering their pension arrangements or making investments; and not be pressured into making decisions about their pension.

Consumer Minister Kelly Tolhurst said:

‘If you are approached to make an investment from your pension, always do your homework and seek independent advice, if necessary, to help you make an informed decision.

‘The government continues to work closely with the Insolvency Service who are working to clamp down on rogue companies targeting vulnerable people.’

Internet link: GOV.UK news

The Insolvency Service has urged individuals saving for retirement to protect their pension pots from criminals and ‘negligent trustees’.

Research carried out by the Service found that criminals use a range of tactics to convince savers to part with their funds, including persuading individuals to access their pension and invest in unregulated schemes.

Pension scam victims lost an average of £91,000 to criminals in 2018, according to Financial Conduct Authority (FCA) research. Criminals often use cold-calls and offers of free pension reviews to convince their victims to comply.

The Insolvency Service has urged savers to be wary of calls that come out of the blue; seek financial advice before altering their pension arrangements or making investments; and not be pressured into making decisions about their pension.

Consumer Minister Kelly Tolhurst said:

‘If you are approached to make an investment from your pension, always do your homework and seek independent advice, if necessary, to help you make an informed decision.

‘The government continues to work closely with the Insolvency Service who are working to clamp down on rogue companies targeting vulnerable people.’

Internet link: GOV.UK news

HMRC has revealed some of the most ‘bizarre excuses’ taxpayers have given for failing to file their self assessment tax return on time.

Excuses included ‘I’m too short to reach the post box’, and ‘my boiler had broken and my fingers were too cold to type’. One taxpayer claimed that a junior member of staff ‘forgot to wear their glasses’, and accidentally registered a client for self assessment. Another told HMRC that their mother-in-law was a witch, and that she had put a curse on the taxpayer, which prevented them from filing their tax return on time.

In addition to these excuses, HMRC also stated that, every year, they receive some unconvincing expenses claims.

One individual attempted to claim £40 for ‘extra woolly underwear’, whilst another taxpayer tried to claim £756 for pet insurance. Meanwhile, a carpenter attempted to claim £900 for a 55-inch TV and sound bar, which he claimed would ‘help him price his jobs’.

HMRC Director General of Customer Services, Angela MacDonald, said:

‘Help will always be provided for those who have a genuine excuse for not submitting their return on time, but it’s unfair to the majority of honest taxpayers when others make bogus claims.’

HMRC stated all these excuses and claims were unsuccessful.

The deadline for sending 2017/18 Self Assessment tax returns to HMRC, and paying any outstanding liabilities, was 31 January 2019. If you have not yet filed your return please contact us for assistance.

Internet link: GOV.UK news

The Chancellor of the Exchequer, Philip Hammond, has announced that the government will respond to the forecast from the Office for Budget Responsibility (OBR) in the Spring Statement on Wednesday 13 March 2019.

The Chancellor may take the opportunity to announce tax changes and consultations.

We will update you on pertinent announcements.

Internet link: GOV.UK news