Scots abroad may face inaccurate tax demands, warns the ATT

Scottish people living abroad risk paying the wrong amount of tax on UK-earned income says the Association of Taxation Technicians.

HMRC regulations state that if a Scottish person is classed as a non-UK resident they should be regarded as a UK taxpayer rather than a Scottish one. But a problem may arise if HMRC holds a Scottish address for a non-UK resident because it may incorrectly determine them to be liable for Scottish rates of income tax. To correct this HMRC requires an address overseas as the main one. This can create difficulties when the individual is in temporary accommodation and has no fixed address.

Taxpayers classed as Scottish in 2017-18 and who have non-savings or non-dividend income taxable in the UK such as rental income may pay more income tax overall than they would if they were classed as a UK taxpayer....