Tax news in brief
Highlights from the broader tax news week ending 3 February, which includes: a restrained Scottish Budget in light of the coronavirus pandemic and HMRC publishes a Brexit edition of its Agent Update with guidance on postponed VAT accounting.
Scottish Budget: ‘now is a time for stability’
The Scottish government announced its Budget on 28 January stating: “now is a time for stability, certainty and targeted support”. Income Tax rates were unchanged, with the starter, basic rate and higher rate thresholds increased in line with inflation (0.5%). Unlike the rest of the UK, Scotland will not add a 2% surcharge for non-residents on Land and Buildings Transaction Tax from 1 April 2021. Read the tax announcements in full.
Brexit edition of HMRC Agent Update
On 27 January, HMRC published a Brexit edition of its update for agents highlighting new rules imposed at the end of the Brexit transition period. The update provided guidance on postponed VAT accounting alongside updates that were also covered in latest Employer Bulletin (trading with Europe, business travel, social security coordination and cash declarations). Like the Employer Bulletin the Agent Update has also changed format and is now only available as an HMTL page.